Puerto Rico Issues Online Sportsbook License
Author:
Megan Butler
Having run a successful sports betting industry at land-based locations, the island of Puerto Rico is finally expanding into online sportsbooks with the issuance of its first license. This was granted by the relevant authority, the Puerto Rico Gaming Commission. The license was granted to both Casino del Mar at La Concha Resort and BetMGM Sportsbook, who are working together to offer an online platform for sports betting.
Puerto Rico has issued its first online sports betting license to Casino del Mar and BetMGM.
?Stephanie Klepacki/Unsplash
The road from land-based to online betting in Puerto Rico
The Puerto Rico Gaming Commission recently reported impressive earnings from its sports betting industry over the last year. More specifically, the earnings were over $400,000 USD for a period slightly less than a year. These were based on legal, licensed bookmakers, which have only been allowed to operate out of brick-and-mortar locations like casinos — until now.
As of June 2023, players are able to enjoy legal online betting via the partnership between Casino del Mar at La Concha Resort and BetMGM Sportsbook. The casino provided a Puerto Rican base for the endeavor, while BetMGM offered its expertise in online sports betting, to create a platform that will serve both companies as well as the fanbase for sports betting.
Jaime Rivera Emmanuelli, who leads the Gaming Commission as executive director, commented on this major step for Puerto Rico gaming. He said that it was commissioners who had to approve the proposal from Casino del Mar. The casino had to show it was up to the task for providing safe online bets and adhering to all relevant guidelines.
However, this approval does not mean that the Commission’s work is done. They remain responsible for monitoring the progress of any platform or location that has a license to operate in Puerto Rico’s gaming sphere. Online gaming offers many advantages and opportunities, but equally many challenges and must be guided with consistent oversight by the authority.
In particular, the executive director mentioned guaranteeing the safety and security of betting payments and winnings. He is hopeful, however, that platforms will rise to the occasion and that the result will be positive for players as well as for the Puerto Rican government, which stands to earn substantial tax revenue on winnings.
Regular sportsbooks are taxed at 7% but online sportsbooks carry a tax of 12%. This applies to player’s winnings and is paid by the player, though the platform may also have to pay a fee for its license.
The tax earnings represent a great opportunity for the Puerto Rican economy, and the platforms themselves open up opportunities for jobs and growth. From BetMGM, CEO Adam Greenblatt shared enthusiasm for the project, saying they were pleased to become Puerto Rico’s first licensed online operator.
In order to participate, players will have to register at physical betting locations. From there, they will be able to take out electronic bets, too. This helps prove identities as well as ages of players. Coincidentally, Casino del Mar was also the first land-based location to receive a license for sports betting back in February 2022, when it was initially introduced in Puerto Rico.
They have worked with BetMGM since. The casino’s general manager, Sigfrido De Jesús, shared that he believes Puerto Rico to be a leader in the sports betting world. According to him, this move will benefit fans as well as the Treasury.
It is likely that more casinos are to follow suit, including Casino Metro in a partnership with Caesars. Puerto Rico’s government will also collect data on revenue from online sports betting, which will be available at least by next year.
