ADOBAD Warns Against Govt’s Gambling Regulation Project

The Dominican Republic is at the intersection of the issue of gambling regulation. The Asociación Dominicana de Bancas Deportivas (ADOBAD) has been critical of the government’s proposal, warning that, as initially presented, it would cause market instability, encourage tax evasion, and be a platform for organized crime.

In June, the government of the Dominican Republic presented to Congress a bill for regulating games of chance. A main aspect of the draft is the creation of the Dirección General de Juegos de Azar (DGJA), an organ issuing licenses in 15 gambling modalities.

On initial observation, the proposal appears to be looking for more control and order in a fast-growing business. Critics, however, argue that the bill has serious flaws that can boomerang and encourage what the bill aims to ban.

Representing sports betting operators, ADOBAD has pointed out that the new law covers what it identifies as “grave errors” and a “deficient institutional design.”

Raúl Martínez, a lawyer and member of ADOBAD, called on the legislators to be responsible in fulfilling their mandate. Martínez cautioned that lawmakers are not meant to simply pass the text blindly without doing an intensive study of the implications. Martínez predicted that the bill would stimulate “very high levels of tax evasion” and destabilize the gambling industry.

One of the greatest concerns of ADOBAD is the risk of unchecked growth. In Martínez’s view, project approval would affect an unbridled availability of game alternatives, bringing about an uncontrolled growth of gambling shops.

He named this condition a “slumification” of the business, and warned that this would invite money laundering and the influx of individuals with connections to organized crime. Unsustainably operated facilities, in his opinion, would represent extreme threats to financial transparency.

The trade association has also highlighted that there are ongoing irregularities. Some concessionaires, it claims, are offering electronic gaming services without a license. Despite rampant complaints, regulators have been unable to act against these abuses.

ADOBAD claims that if the habits go on even under present conditions, the risks will just multiply with the new organization, allowing a freer, more unregulated expansion of the market. This could encourage the slot machines and computer games to be placed in places other than regulated casinos or sports betting stores, in any public or private venue.

Besides criminal and regulatory risk, job loss on a large scale is a worry. ADOBAD has warned that approximately 20,000 jobs are at stake if the bill is passed in its existing form. More than 3500 sports betting businesses will be affected, threatening thousands of families’ livelihoods whose earnings depend on this sector.

ADOBAD has been adamant that the association is not opposed to regulation in general but demands a balanced and better-designed system. The association demands that legislation bestow significant emphasis on transparency, tax compliance, market stability, and safeguarding legitimate operators.