Legislation
Puerto Rico – Changes to Puerto Rican horse racing law hailed by industry
By Phil - 20 November 2014
A significant amendment to Puerto Rico’s horse racing laws has been welcomed by local industry experts who believe it will bring a new lease of life to the industry, which has suffered a number of serious setbacks over recent years.
The Senate voted in favour of the new bill by 27 votes to 21 with two absentee votes. The amendment now only needs to be signed by governor of the Governor of Puerto Rico Alejandro García Padilla before going info force.
The bill went through several changes as it went through its draft stages with Senators finally agreeing to reduce taxation imposed on bets from 10.54 per cent to four per cent. The new law also creates a new fund which will be destined for promoting thoroughbred breeding and acquisition programs for thoroughbreds so that races in the future are more attractive to fans.
President of the largest racetrack in Puerto Rico Ervin Rodriguez Velez welcomed the new move and thanked Senators for, “the sensitivity with which they endeavoured to address the socio-economic problems the sport-industry faces for the first time in many years.”
Mr. Velez went onto say that the amendments to the law marks a major change to the industry and will signify, what is hoped, a major reversal in the decline in tax revenue for the Government generated by the racing industry.
“The current economic situation has resulted in layoffs within the horse racing industry and reduced working hours,” Mr. Velez said. “It has reduced the number of races, the number of betting outlets and the total of registered horses, which has negatively affected the dynamics of the sport and its appeal as a game of chance.”
The crisis has been especially acute for the horse racing industry due to the rise of casino gaming and illegal gaming on the island. The crisis has caused government revenues related to horse racing alone to have decreased from US$ 31.4m in 2005 to about $13.2m in 2013.
Local experts had predicted that the industry would continue to decline if the government did not move to quickly to approve new measures. It is believed that the executive will sign the amendment this week and that the project will come into force within the next 60 days.
