The unincorporated territory of the United States known as Puerto Rico is an island in the Caribbean that is home to 3.27 million people. Because Puerto Rico is governed by the US government, it shares many laws with the mainland. However, some laws are unique to the island territory and do not correspond with regulations found in mainland America. One area where this is true is gambling.
Gambling in Puerto Rico
Puerto Rico was one of the first American jurisdictions that legalized gambling during the 1900s, beaten only by Nevada. Under Act 221 of 1948, gambling houses (casinos) and slot machines were legalized on the island, and the gambling industry was born.
Since then, the industry has grown significantly. Today, there are 16 casinos in the region, and gambling has become a common and popular pastime—unlike in certain regions of the United States.
With the advent of online gambling, many believed that Puerto Rico would be quick to adopt iGaming due to its popularity. However, showing stronger ties to the US than many thought, the island was slow to allow online wagers, and online gambling was illegal until 2019—over two decades after online gambling first appeared on the scene.
Governing Laws
The law that opened the region to online gambling was House Bill 2038 (HB 2038). Passed in 2019, the bill, also known as the Government of Puerto Rico Gaming Commission Act, legalized sports betting—including online sports betting—in the region.
However, online casinos and slots remain illegal in the region and are subject to the Wire Act of 1961 and the Unlawful Internet Gambling Enforcement Act, which also restricts iGaming in various US states.
Alongside legalizing sports betting, HB 2038 also established a new regulatory body, the Puerto Rico Gaming Commission (PRGC). This body oversees all aspects of gambling on the island and is the sole authorized issuer of operator gambling licenses.
Despite now being legal, the territory’s online gambling market saw little change, mostly due to a lack of clarification on licensing requirements and operator tax implications. As a result, the law was expanded in 2020 with the passing of Law 168.
Building on HB 2038, Law 168 outlined the details of the newly created online sports betting framework. It included what operators need to do to be licensed, what taxes they would be liable to pay, restrictions on advertising online sports betting, and what consumer protection measures operators must put in place.
With players hopeful that this would be the last hurdle to an influx of operators, no movement occurred in the industry as the laws passed created a framework but didn’t allow activity in the market. The activation of iGaming eventually came in 2021 when Governor Wanda Vázquez Garced signed Senate Bill 1534.
The bill, which refined some of the clauses in HB 2038 and Law 168, officially activated sports betting in the territory and made new provisions for esports. This move was again expected to create a rush to tap into the local market, which has yet to occur.
Online Gambling in Puerto Rico
Since the introduction of Senate Bill 1534, the PRGC has been working to outline additional regulations for operators, including minimum technical specifications, anti-money laundering procedures and measures, and recommended guidelines.
Despite the gambling industry generating $186 million in 2023, these additional items have resulted in no operator receiving a license as of July 2024. With speculation that many operators are waiting to enter the market, the PRGC has announced that it is still finalizing regulations and will soon begin issuing licenses.
For players within the region, this means that there are still no licensed operators with whom they can gamble. Consequently, many people have turned to offshore operators to place bets and, due to the illegality of online casinos, forced many to seek their entertainment elsewhere.
Doing this is not recommended, and the local government strongly discourages it. However, many allow players from US territories, making Puerto Rican players enticing to many international operators. Moreover, the most popular casinos will accept PayPal as a payment method, which is widely used in the country.
The Dos and Don’ts of Online Gambling in Puerto Rico
With the government actively telling players not to engage with offshore operators, there are some tips and tricks that Puerto Rican gamblers can employ to ensure they don’t fall victim to scams or find themselves on the wrong side of local or federal laws.
Don’t: Gamble on any website without doing proper research.
Although many websites are legitimate and offer fantastic gambling opportunities, not all are what they seem. Therefore, before gambling on a site, research who owns it, what licenses it holds, what other players are saying about it, and whether it has been flagged as a scam anywhere online.
Do: Ensure you are educated on the pitfalls and dangers of gambling before playing.
Online gambling has brought convenience to millions of players worldwide. At the same time, it has exposed these players to a greater risk of problem gambling due to its accessibility and the incentives run by casinos to keep players coming back for more. To protect yourself against these dangers, ensure you understand the signs of problem gambling and know where to get help should you need it.
Don’t: Violate local laws, even when using an offshore gambling operator.
Whether the site you’re playing on is operated by a Puerto Rican company or one based abroad, ensure that you don’t engage in any expressly illegal activity under local laws. This includes engaging in gambling activity if you are under the age of 18.
Do: Stay up to date with developments and the launch of locally licensed operators in the country.
As licenses will soon be issued, make sure to stay updated on when local operators launch so you can start gambling with them. Having the operator located within the region and operating under a local license will ensure your safety and likely provide you with a better gambling experience.
