Caesars expands Puerto Rico sports betting into digital realm
Caesars Entertainment already has an established sports betting presence in Puerto Rico thanks to its partnership with Casino Metro. The agreement has now expanded into the digital realm with the launch of online sports betting operators.
There are now three online betting operators as the Puerto Rico Gaming Commission (PRGC) approved two new sports betting licenses. If the government's numbers are correct, these three items alone will provide significant benefits to Puerto Rico in the next fiscal year.
A few weeks ago, the commission approved the first online betting operation for Casino del Mar and its business partner BetMGM, which provides an electronic betting platform. Last Monday, the commission announced approval for two more venues: Casino Metro at Caesars and The Stadium (WinIn brand), which will use IGT’s gaming platform.
Gambling should boost Puerto Rico’s coffers
Of the two new online sportsbooks, WinIn is the first licensed operator outside of casinos. It and IGT first joined forces two years ago in Puerto Rico to begin their journey.
In May, the Puerto Rico sports betting market saw $470,000 in sports bets, all of which was conducted in person because the first online sportsbooks had not yet been approved at the time. The government expects this to change with the advent of online gambling and expects revenue to reach millions of dollars.
PRGC managing director Jaime Rivera Emmanuelli’s forecast is based on the performance of U.S. sports betting providers. He explained that 80% of sports betting in the country is done through the online segment, which was used to calculate the new figures.
Retail bets are subject to a 7% tax and online bets are subject to a 12% tax. Emmanuelli explained that the figures, adjusted for the potential market in Puerto Rico, would mean about $4 million in tax revenue and possibly another $300,000 in licensed product revenue.
The sports betting tax percentage is not based on total bets but on the casino's revenue.
The boss of PRGC pointed out that these three licensed companies all comply with the requirements of local laws and regulations. This allows them to conduct their business online and provide mobile applications to the public, allowing them to place bets from any location and any electronic device.
Follow more sports betting providers
To date, the PRGC has issued 30 licenses to 5 operators and 25 service providers. Two of the five licensed operators are evaluating internal operational controls. Neither has been identified.
Emmanuelli said regulators are currently reviewing about 50 license applications. Much of this is for service providers, meaning BetMGM, Caesars and IGT will currently control the market.
Emmanuelli believes licensing will promote the development of a responsible industry. He emphasized that one of the main advantages of online gambling platforms is their high security.
One of the requirements for operators is to implement geofencing to create virtual geographical betting restrictions. The technology includes software that triggers a response when a mobile device enters or leaves a specific area.
This allows PRGC to control where the platform runs. It will also be able to compile data on which areas are more popular with punters. This means operators and the Commission have real-time information about transactions.
The geographical limit for online gambling is five nautical miles from the coast of Puerto Rico. These include Mona Island and the municipal islands of Vieques and Culebra.
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Source: www.casino.org
