Gambling has been deeply woven into Puerto Rico’s cultural fabric ever since the Spanish colonial era. The island’s gaming journey, like many others, began with cockfighting and horse racing, both introduced by the Spanish.
A big moment in the gambling history of the island came in late 40s, when Puerto Rico became the second U.S. jurisdiction after Nevada to legalize casinos. This was done through the very aptly (but potentially now outdated) named Random Games Law.
The traditional lottery dates a long way back to 1814. It was established by the King of Spain, though it wasn’t officially instituted until 1934 – well over a hundred years later. Gaming truly lifted off in 1956 though, with the legalization of off-track betting. This opened up a new world of opportunity for both players and operators.
Today’s regulated gaming environment came from concerns about illegal gambling’s impact on society. In 1994, the government estimated illegal gambling expenditures at an incredible $4.3 billion, with half spent on illegal coin machines. That is a truly remarkable figure, and it led to strategic expansion of legal gambling options to combat illicit operations. And, of course, because the government was missing out on taxing that revenue.
Today, the Puerto Rico gambling environment is a far cry from cockfighting, but is now a sophisticated amalgamation of online operators and innovative games.
Current Market Performance and Revenue
Puerto Rico’s gaming industry demonstrated robust performance in 2023, generating total revenue of $186 million, marking a 15% increase in casino revenue compared to the previous year. To be clear, this revenue figure is far below the 1994 illegal $4.3 billion figure because the latter was expenditure, not operator revenue. Clearly, the house doesn’t win every time.
The casino sector dominats the revenue stream, contributing $177.3 million, which is almost all of it. Despite horse racing being at the start of their gambling origins, it only generated $8.7 million, while sports betting added just $500,000. These figures are profoundly more weighted towards casinos compared to countries like the UK.
The industry’s success has created substantial economic benefits. Over the past decade (2013-2023), the government collected $1.4 billion in gaming revenue, distributed among key institutions: $620 million to the University of Puerto Rico, $213 million to the Treasury and $537 million to the Tourism Company.
Modern betting patterns in Puerto Rico mirror mainland U.S. trends though, with around 80% of wagers placed online and only 20% occurring at physical locations. The island currently has 18 operational casinos, and all of these are situated within hotels (much like Vegas culture), providing approximately 10,000 direct and indirect jobs.
The Gaming Commission reinvests a portion of gaming proceeds into tourism development and promotion, in part to create a self-sustaining cycle that benefits both sectors. In fact, this may well explain the dominant weighting of revenue towards casinos, as nobody goes to Puerto Rico on vacation to bet on sports.
Online Sports Betting & Casinos
Given how enriched Puerto Rico’s casino industry (and history) is, it may then be a surprise to hear that the online betting markets only launched in 2023. This, clearly, is another explanation for the weighting.
Currently, two major operators dominate the online sports betting market: BetMGM and Caesars Sportsbook. The Gaming Commission has also granted temporary licenses to additional operators including Ballers Puerto Rico Sportsbook, Liberman Media Group Gaming and CCHPR Hospitality.
A distinctive feature of Puerto Rico’s online betting framework is its mandatory in-person registration requirement. New users must visit physical sportsbook locations to complete their registration before accessing mobile betting platforms.
However, the same can’t be said for the online casino industry, which is far from a duopoly. Online casinos are growing in popularity in Puerto Rico, with competition hotting up. 2025 is expected to be a year of growing number of operators, a maturity in promotions (i.e. aligning with global expectations), and more innovation within game development.
Market Access and Regulations
The Puerto Rico Gaming Commission is the moderator of all betting operations, and it’s growing its fierce reputation for having strict oversight. Licensed operators must pay substantial fees, but the framework shows the importance of consumer protection. It has strict identity verification protocols and many responsible gaming measures – perhaps scarred by its illicit gaming market history.
The territory permits betting on a nice range of sports now including professional leagues, NCAA events and eSports. But, it still feels in its infancy compared to online casino gaming. Though, you can bet on local college events taking place within its jurisdiction.
Final Word
Puerto Rico is growing its reputation as being a highly credible, reliable regulator for the casino and betting industry. It has a long history of gambling, but many of its online moves are fairly recent. However, because of this blend, many experts predict 2025 to be a very high-growth year for the industry.
