Puerto Rico mulls sports betting and online gambling legalisation
Sports betting operators to be taxed at 11% under new proposals
Puerto Rico has introduced a bill to authorise sports betting and online casino gambling, claiming a market could generate US$68m in revenue by 2022.
Under the bill, a new Puerto Rico Gaming Commission will be created, and will be responsible for regulating both the land-based and online industries, while also issuing licences to online operators.
The bill stipulates a seven-member board, made up of individuals from the private and public sectors, with the Financial Institutions Commissioner’s Office having oversight over the Puerto Rican market.
Puerto Rico Governor Ricardo Rosselló hailed the “aggressive legislation” as being one that will enable the marketing of the island “at the international and national levels as an attractive destination for the millions of people who bet on sports events”.
Sports betting will be taxed at 6% for land-based betting and 11% for online betting, with all proceeds being collected by the Puerto Rican Department of Treasury. No explicit taxation rates for online gaming have been confirmed.
These taxes will be used to cover commission costs and will be allocated to programmes aimed at combatting problem gambling. A government commissioned market study by Spectrum Gaming Group estimates that both land-based and online sports betting could generate between $44m and $62m annually.
Land-based casinos currently in operation in the Puerto Rican market will be allowed to apply for sports betting licences, with betting agencies being offered a 50% discount on sports betting licences for 10-year period.
Rosselló said the new legislation as having the potential to convert Puerto Rico into a “jurisdiction in the vanguard of allowing the establishment of this new model, which will have a positive effect on our economy.”