Gambling revenue is increasing in the Dominican Republic, according to recent statistics
Despite complications caused by the COVID-19 pandemic, new statistics show that the market in the Dominican Republic (DR) is recovering and sales are increasing.
Gambling revenue increased by 6.5% in the first six months of this year compared with the first half of 2022, statistics from the Internal Revenue Service (DGII, by its Spanish abbreviation) showed. Although the increase is not huge, it is still worthy of praise. Sales rose to Dh2.16 billion ($37 million) from Dh2.03 billion ($35 million).
Increase in tax revenue
As a result of this performance, tax revenue increased by 35.4% between 2015 and 2022, according to DGII. During these seven years, the gaming industry’s DR increased from AED 2.58 billion ($43.3 million) to AED 3.5 billion ($61.46 million). This significant growth highlights the gaming industry’s increasingly important role in generating tax revenue and the country’s overall economic performance.
Of all the segments in the gaming industry, Sports Betting records the highest revenue. In 2022 alone, the segment generated an impressive AED 1.42 billion ($24.8 million), compared to 2015 figures of AED 1.2 billion ($21 million).
That equates to a 17.9% increase, but was also affected by an increase in sales tax from sports betting banks. Since 2015, that number has increased from $4.1 million to $5 million, a 24% increase.
It is predicted that if the current betting momentum continues in the second half of the year, total revenue in 2023 could reach US$4.21 billion ($74 million). This potential growth represents a significant increase of 21% from last year's $3.64 billion ($64 million).
The three fastest growing areas over the past seven years have been lottery prizes, slot machines and phone games, which often involve text messaging contests. These segments generated returns as high as 93%, 49% and 33.7% respectively.
Market setback
However, the DR gaming industry has suffered major setbacks in recent years. In 2017, the industry lost 54.1% of its market share. In 2020, the impact of the COVID-19 pandemic further exacerbated this trend, causing sales to fall to an all-time low of AED 1.86 billion ($32 million).
The figure was down 38.4% from $US3.03 billion ($52 million) in 2019, a year that saw a number of tourist deaths in the country. Nonetheless, the industry started to show signs of recovery in 2021, with sales rising again to AED 2.8 billion ($50 million).
2020 was the lowest revenue year for the DR gaming industry, with total revenue falling to $US1.86 billion ($32 million). Revenue fell significantly, down 38.4% from AED 3.03 billion (USD 52 million) in 2019, primarily due to the global coronavirus (COVID-19) pandemic, which has severely impacted the development of the global gaming industry.
Cases of tourist deaths in the country have further exacerbated the negative impact of the pandemic, which had already had a negative impact on the industry in 2019. However, the industry showed remarkable resilience and began to recover in 2021, with revenue rebounding significantly to AED 2.8 billion ($50 million).
DR game market recovery
Much of the growth in gaming revenue in the Dominican Republic can be attributed to the transformation that sports betting operators began in 2021. Until then, the department had operated largely without strict controls or oversight.
Recognizing this gap, DR initiated important changes and announced a transition period for operators to move to regulated areas. The original timeline called for operators to apply for and receive licenses in April and May 2021.
However, due to widespread delays, the deadline was extended and the regulator began enforcing compliance in October 2022. Gambling providers that fail to submit the required documentation must cease operations.
Although some operators operate without licenses, overall improvements in industry regulation are expected to further boost DR gaming revenue growth.
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Source: www.casino.org
