Sports fans and bettors in Puerto Rico may be in for a treat as the country is on the verge of going live. This all kicked off two months ago when Governor Ricardo Rossello launched the drive to legalize sports betting by proposing a measure that, if passed, would green light the provision of sports betting offerings in Puerto Rico. According to the governor, the sector is projected to generate at least $3 billion every year once it matures.
As a matter of fact, two studies were commissioned in order to determine how much tax revenue could accrue from sports betting. The first study was conducted by the Spectrum Gaming Group who went on to estimate that between $44 million and $66 million in revenue would be generated annually from the sector. The Innovation Group conducted the second study and they found that the revenue would be as much as $68 million. Clearly, this is definitely worth paying attention to.
The History of Gambling in Puerto Rico
In Puerto Rico, most forms of gambling are legal and are regulated – these include lotteries, casino games, bingo, horse racing, and even cockfighting. However, just like most other territories in the United States, Puerto Rico is subject to the federal restrictions that have outlawed most forms of online gambling.
This was the case for a very long time but the abolishment of the Professional and Amateur Sports Protection Act (PASPA) by the US Supreme Court in May last year marked the dawn of a new era. There has been increased lobbying for the legalization of sports betting and it is no surprise that online sports betting is now also a consideration.
What the Bill Entails
While the new law allows for both retail and online sports betting, it will not allow betting on amateur sports. The online gambling licenses will only be issued to operators who have appropriate business plans and have been proven to be compliant with the territory’s health and safety laws. Moreover, the bill also states that no sports betting center will be allowed within 100 meters of social spaces such as schools, religious spaces as well as rehabilitation facilities for problem gamblers. Each of the licenses is expected to cost at least $50,000 and $2,500 for large operations and small-scale operations respectively. In addition to that, there will be a 12 percent tax rate for online sports bets.
The new bill also calls for the establishment of a new Gaming Commission that will be tasked with providing an institutional structure for existing regulatory groups in Puerto Rico which include the Gaming Division of the Tourism Office of the Department of Economic Development and the Horse Racing Industry Administration.
