{"id":280,"date":"2019-07-31T00:00:00","date_gmt":"2019-07-31T00:00:00","guid":{"rendered":"https:\/\/gbc.ng\/puerto-rico-legalizes-sports-betting\/"},"modified":"2019-07-31T00:00:00","modified_gmt":"2019-07-31T00:00:00","slug":"puerto-rico-legalizes-sports-betting","status":"publish","type":"post","link":"https:\/\/gbc.ng\/index.php\/puerto-rico-legalizes-sports-betting\/","title":{"rendered":"PUERTO RICO LEGALIZES SPORTS BETTING"},"content":{"rendered":"

Gov. Ricardo Rossell\u00f3 signed on July 29 the\u00a0Betting Committee Act of the Government of Puerto Rico<\/strong>, which greenlights an industry whose worth, according to the official press release, is estimated to reach more than $3 billion by 2023.<\/p>\n

\u201cBy signing this law, we are getting ready to witness the potential it provides to transform Puerto Rico into a vanguard jurisdiction while benefitting the local economy. With this legislation, the island will be able to market itself nationally and internationally as an attractive destination for sports betting events,\u201d the governor said via press release.<\/p>\n

Rossell\u00f3 added, \u201cwe are betting on this emerging industry by allowing betting on its events. This joins the Governor\u2019s Advisory Council on Video Game Affairs [Electronic Game Leagues & Sports Betting] and the incentives for this industry included in the newly signed Incentives Code.\u201d<\/p>\n

As previously informed, the council\u2019s members include the Secretary of Public Affairs and the Chief of Staff (both of whom resigned amid the \u201cTelegramgate\u201d scandal that shook the island\u2019s political sphere); the executive director of the Puerto Rico Tourism Co.; the secretaries of Education, Economic Development & Commerce, and Sports & Recreation; and four additional members designated by the governor.<\/p>\n

According to the official press release, this industry is expected to generate more than $3 billion annually in the United States by 2023, although the document does not cite any source to back up the claim.<\/p>\n

However,\u00a0THE WEEKLY JOURNAL<\/em>\u00a0<\/em>confirmed that\u00a0GamblingCompliance\u2014a provider of business intelligence in this industry\u2014projected back in 2018 that the legal sports betting market will be worth\u00a0between $3.1 billion and $5.2 billion in annual revenue by 2023.<\/strong><\/p>\n

Meanwhile,\u00a0Rep. N\u00e9stor Alonso Vega<\/strong>, who introduced the legislation (House Bill 2038) last April, stated that this new law\u00a0\u201cpositions us in the Caribbean as the first jurisdiction with sports betting.\u201d<\/strong><\/p>\n

In addition to sports betting, the law authorizes betting on fantasy leagues and the emerging segment of eSports. The latter, which is moderately regulated in other U.S. jurisdictions, allows betting on video game competitions, which garner hundreds of millions of viewers annually.<\/p>\n

On the administrative side, the act creates a\u00a0<\/strong>new Betting Commission<\/strong>, in accordance with the model of other U.S. jurisdictions that have adopted this type of legislation. The commission, comprised of seven members of the public and private sectors, will be the government entity\u00a0responsible for regulating sports betting, equestrian sports, eSports, and gambling.<\/strong><\/p>\n

The commission absorbs the current Administration of the Equestrian Sports Industry and the Gaming Division, which are part of the Tourism Co. The government informed that the employees in these entities will heretofore work under the new Commission and that \u201cno public employee will be fired as part of the reorganization.\u201d<\/p>\n

Moreover, the legislation includes a provision that\u00a0prohibits minors from participating in these games.<\/strong>\u00a0Likewise, it will reportedly address video game addictions that may arise, as well as money laundering and tax evasion.<\/p>\n

Betting activities will be allowed in the Commission\u2019s authorized locations, such as casinos, racecourses, hotels, paradors, among others.<\/p>\n

The governor explained that this new legislation will increase the Treasury\u2019s revenue, coming from the operating licenses and taxes that will be collected from plays and prizes. A rate of seven percent has been proposed in the case of physical bets, and 12 percent in digital bets.<\/p>\n

These charges and taxes seek to be \u201cextremely competitive\u201d to other jurisdictions, with aims to attract investors to an industry that is currently nonexistent on the island.<\/p>\n

The proceeds from this industry would be distributed to help cover the retirement of pensioners and programs aimed at promoting sports among youth; to offer services against gambling addiction; to offer better police equipment; to promote creative industries; and to cover administrative expenses and the new Commission.<\/p>\n

In addition, as a measure to complement the income of individuals who partook in cockfighting, licenses will be authorized to those existing pits to be able to accept sports betting. These licenses will be issued free of charge for the first ten years and the benefit will be applicable to any pit that operated legally prior to the approval of the U.S. Farm Bill, which criminalizes cockfighting.<\/p>\n

\u00a0<\/p>\n

\n