Puerto Rico reveals sports betting licensing process
Operators to pay $50,000 for annual licenses which are valid for just one year
Regulators in Puerto Rico have unveiled the application process for sports betting and DFS licensing.
The Caribbean island, which is a territory of the US, first legalized sports betting in July 2019, although the regulatory process has been slower than expected, with regulations initially rolled out in August 2020.
However, the Puerto Rico Gaming Commission (PRGC) has only just triggered licensing, allowing operators to submit applications from November 22.
Application fees for both new licenses and license renewals start at $500, with all licenses valid for just one year.
Verticals on offer include esports betting, tournament betting, sports betting on events involving a majority of participants over the age of 18, and cockfighting.
Events which fall outside of the commission’s scope of operations must be individually approved.
When this does occur, the operator must impose a betting limit of no more than $100 and a win limit of $500.
Licensing fees for a principal operator or internet wagering platform start at $50,000 (£36,000) and are payable annually. So-called Satellite Licenses, or Point of Sale Licenses, start at $2,500 and are also payable annually.
DFS operators can also obtain certification in Puerto Rico, at varying costs based on their respective revenue. For those who receive adjusted gross revenue in Puerto Rico of more than $10m annually, minimum license costs are $10,000.
Any DFS operator which generates revenue below this amount will pay a substantially reduced fee of just $1,000. Once filed, applications cannot be withdrawn, unless via the express consent of the PRGC.
All devices and equipment used by the prospective operator must also be certified by the regulator.
Sports bettors in Puerto Rico are subject to a monthly deposit cap of $2,500, however this can be adjusted both on a temporary and permanent basis if the operator can prove affordability.
Operators must also offer players the ability to self-exclude on a temporary basis of more than a minimum of 30 days, as well as permanently. Temporary self-exclusions can be extended as required.
In line with other jurisdictions, there are restrictions on operator advertising relating to location, appealing to minors and direct and indirect marketing.
Under Puerto Rico law, bets placed through an authorized location (retail) are taxed at rates of 7% of adjusted gross revenue, rising to 12% for those placed online.
BetMGM is set to be one of the first to enter the market, having previously agreed a strategic partnership with the Casino del Mar at La Concha Resort.
Subject to the terms of the agreement and the appropriate regulatory approvals, the BetMGM mobile app will go live across the Caribbean island, while the operator will also open a retail sportsbook at the San Juan beach resort.