Sep12
Kentucky Launches Regulated Sports Betting Market with a Bang
Puerto Rico Is One Step Closer To Sports Betting Market Regulation
April 6, 2019 Aleksandra Zolotic
Sports betting legislation seems to be on its way to Puerto Rico, as Governor, Rossello Nevares, announced the plans to regulate it. Besides in-land sports betting, this US-controlled territory also aims to legalize online and in-person wagering, as well as fantasy and eSports.
According to the Governor himself, if the regulations become reality, the island could generate a significant profit from it. Official predictions say they’re expected to acquire annual revenue between $44m (£33.4m/€39.1m) and $68m from the regulated industry.
Massive regulation surely has to do with the positive US example, which earned the title of the industry’s global leader for the year behind us.
The Magnificent Seven To Lead The Way
If all goes according to plan, the newly created Gambling Commission would supervise the market. As for the of the board, it should consist of seven people chosen both from the public and private sector. The newly-established commission should absorb the Division of Gaming and istracion de la Industria del Deporte Hipico, which is …
…the existing horse racing industry regulator.
The body would operate under the institution which is already in charge of Puerto Rican gambling, and that is the Office of Commissioner of Financial Institutions. Nevares comments:
“The industry has the potential to turn Puerto Rico into a state-of-the-art jurisdiction, which will allow us to establish a new market that will have a positive effect on our economy. We have developed aggressive legislation that aims to market the island nationally and internationally as an attractive destination for the millions of people who bet on sporting events.”
Esports As Their Wild Card
The Governor sees this eSports as the strongest segment to push towards possible success, as this form of entertainment is attractive to the community demographically younger than the average casino consumer. This would have a significant financial impact on the economic boost of the country. Of course…
…there would be a wide range of safeguards implemented to make sure minors are away from any harmful impact. Regulation would also help deal with tax evasion and money laundering. The expected great profit from the legalization of betting would be used for various funds to help old people, promote education or provide treatment for those with gambling-related issues.
Waiting For The Scrutiny
As for the licenses, the tax for land-based wagering would be 6%, whereas tax for web-based would be 11%. The aim of such low rates is to attract more operators to the island. Sports betting would be permitted in various (land and online) facilities, which could be given a 50% discount on the tax rate.
From what was introduced, Puerto Rico seems to have made a smart plan. The proposal was sent for further evaluation, and before it comes into law, the lawmakers must give their approval.
Source:
“Puerto Rico announces plans to regulate sports betting”, igamingbusiness.com, April 3, 2019.
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Yeah, as mentioned here, the US generally is a good example that things can work well if regulated. I believe that Puerto Rico will have no problems if they follow their model.