Puerto Rico Estimates $11.3M Annual Tax Revenue From Online Casinos

The estimate comes from the Treasury Department and appears in the explanatory memorandum to House Bill 1514. Governor Jenniffer González Colón announced the proposal on October 16. Puerto Rico already permits online sports betting, but the new measure would extend regulation to casino games.

Online Slots Face a 35% Tax Under the Bill

The text of House Bill 1514, also known as administration measure A158, proposes two rates on adjusted gross gaming revenue:

• 35% for online slots and games predominantly based on chance;
• 14% for table games and other games placed in that category by the Gaming Commission.

The tax would be paid monthly. Revenue would be calculated after player winnings and permitted adjustments, rather than on the total value of bets.

At $1 million in taxable revenue, the two rates produce very different bills. The slots tax comes to $350,000, against $140,000 for table games. That’s a gap of $210,000 on the same revenue.

The proposed licences would run for five years and cover up to three brands each. The Gaming Commission could also halve licensing fees for a period of up to ten years. The tax rates are not part of that concession.

Hotel Casinos Say They Were Left Out

The Puerto Rico Hotel and Tourism Association (PRHTA) objects to the plan. Ismael Vega, head of its Casino Committee, complained that operators had not been consulted before the bill was introduced.

The association sees a problem with allowing online casinos to offer the same games without maintaining hotel properties or employing comparable numbers of staff. Existing casinos would still have their current tax obligations, while new entrants could qualify for reduced fees.

Former PRHTA president Miguel Vega raised the prospect of lost jobs and lower investment in tourism. The association also said no recent market-impact studies had been disclosed, according to NotiCel.

House Bill 1514 was filed on October 15. The Senate version, PS 1557, arrived a day later. Neither has become law. If the law takes effect, the Gaming Commission would have three months to issue regulations.