Puerto Rico Accepts Sports Betting Hoping to Boost Tourism with Low Taxes

The outgoing Governor of Puerto Rico, Ricardo Rosselló, signed the law that allows this territory to offer sports betting services, fantasy sports, and eSports. This made the island become the latest U.S. territory to legislate sports wagering.

According to Rep. Nestor Alonso, this decision should significantly improve the economic development of the island. Moreover, it is a part of their continuous efforts to level-up tourism.

Helping Local Economy

Aiming to boost tourism, the island will feature one of the lowest sports betting taxes in the US: only 7% on gross gaming revenue for retail sportsbooks. However, the situation will be slightly different for online sportsbooks, as they will be subject to a 12% tax. The Governor elaborated as follows:

“With this law, we are getting ready to see how sports betting can potentially help Puerto Rico become an innovative jurisdiction and help the local economy. The island will be able to show off as a national treasure and international spot for sports betting. This victory is part of the Governor’s Advisory Council on Video Games Affairs.”

As far as the law says, sports wagering will be permitted in casinos, racetracks, off-track betting venues…

…as well as on online sites. Though the activity has become official just now, some predictions made by the Chamber of Commerce imply that this US-controlled territory could make about $87 million per year from legislated sports betting.

The acquired taxes will be divided among a variety of organizations and bodies as follows:

• 50% for Puerto Rico’s pension fund
• 10% for each of the listed institutions: police forces, Health Insurance istration, Department of Recreation and Sports and Department of Education
• 5% will be invested in the treatment of gambling addiction

The Initial Ideas about Legalization

The first officially made steps regarding the approval of sports betting on the island…

…date back to April this year. The governor expressed plans to establish a Gambling Commission which would be in charge of supervising the market. The board should consist of seven , who would be selected both from the public and private sector.

The regulatory body in charge will be Division of Gaming and istracion de la Industria del Deporte Hipico.

This jurisdiction pointed out that, besides working on ways to improve economic development…

…another main focus will be put on consumers’ protection. This primarily refers to minors, as they are the ones that need to be safeguarded against any form of harmful impact. Moreover, tax evasion and money laundering are also among aspects which require special attention.

Source:

“Puerto Rico Becomes the Lates U.S. State to Legalize Sports Betting”, Niji Narayan, europeangaming.eu, August 1, 2019.