Gov. Rossello signs Bill legalizing Sports Betting in Puerto Rico
Lowest tax rate in US at 7% of GGR for retail and 12% for online operations
Puerto Rico became the latest in the United States to legalize sports betting as outgoing Gov. Ricardo Rosselló yesterday signed House of Representatives Sports Betting bill 2038, legalizing Sports Betting and electronic and internet gambling in the Caribbean island which is part of the US commonwealth.
The new bill also permits fantasy sports and betting on esports, and enables the island casinos, racetracks, off-track betting parlors, and other venues to operate sportsbooks
After nearly four months, Rosselló signed the new gambling legalization saying it would help rebuild the island that was devastated by Hurricane Maria in 2017. The US administration has given practically no economic support to Puerto Rico for rebuilding after the devastation.
With the economy practically in chaos and tourism at an all-time low, Puerto Rico hopes to boost its economy and the new bill will offer some of the lowest taxes on sports betting in the US. The tax rate will be 7 percent on gross gaming revenue for retail sportsbooks. Online books will get taxed at 12 percent.
A study published in March by Spectrum Gaming Group estimates sports betting in Puerto Rico could generate up to US$62 million in annual gross revenues.
The new law also has provisions for the creation of a gaming commission that will absorb the current gambling regulators in Puerto Rico and will regulate both sports betting and horse racing. The seven-member panel will include both public officials and citizens.
