Legislation
Puerto Rico – Puerto Rico’s Governor announces sports betting regulations
By Phil - 3 April 2019
The governor of Puerto Rico, Ricardo Rosselló, has announced that he will put forward a project before the Legislature aimed at authorizing online and land based sports betting.
“This industry has the potential to turn Puerto Rico into a state-of-the-art jurisdiction, which will allow us to establish this new market, which will have a positive effect on our economy. We have worked on an aggressive legislation that will enable the island to be marketed nationally and internationally as an attractive destination for the millions of people who bet on sporting events.”
Rosselló said that a study carried out by the government showed that the newly regulated industry could bring in between US$44m and US$66m per year. Kenneth Rivera, President of the Chamber of Commerce, said at a press conference that another study commissioned by the entity showed that sports betting could bring in between US$29m and US$87m per year.
The governor acknowledged that the new measures will face a turbulent time in the legislature as similar moves have been blocked in the past. In September 2018 The Association of Hotels and Tourism of Puerto Rico (PRHTA) expressed its strong opposition to a new sports betting bill. The President of the organisation Pablo Torres argued that the expanded offer could dilute the market and effect casino revenue.
The new measures were first initiated by Representative Nelson Alonso Vega, who the governor said, will be responsible for drafting the new bill.
In addition to betting on sports, the project authorizes bets on fantasy leagues and eSports. New legislation will create a new Betting Commission, following the model of other states that have adopted sports betting rules. The Commission will be composed of seven members of the public and private sector. Operators will pay a six per cent rate tax on revenue from land based betting, and eleven per cent for online. Sports betting licenses at horse betting outlets will be granted a 50 per cent discount for the first 10 years.
Crucially The Puerto Rico Tourism Company (PRTC) has already given its support for new gaming rules. The PRTC regulates all administrative processes regarding licensing, franchise concession, supervision, and management of gaming operations in Puerto Rico. The PRTC was founded in 1970 and is a public corporation responsible for stimulating, promoting and regulating the development of Puerto Rico’s tourism industry.
Although Puerto Rico has a certain amount of local autonomy according to the U.S. Constitution ultimate governance of the island is retained by both the U.S. Congress and President. Cock fighting is currently legal but will soon be outlawed in Puerto Rico and is, apart from horse racing, the only sports on which locals may gamble. However, illegal sports betting is widespread and Puerto Ricans like to gamble especially on American sports particularly on the NBA. According to local reports, a small illegal betting centre can receive up to US$5,000 per day in bets while a larger operation can often take in around US$20,000 per day.
