Puerto Rico's New Bill to Regulate Online Gambling for Pension Funding

A legal framework for iGaming 

The Governor of Puerto Rico, Jenniffer González Colón, announced four legislative initiatives, including a bill to regulate online gambling, known as iGaming, and to use part of the tax revenues generated by the activity to improve pensions for the public sector.

Measure A158 proposes amending the Gaming Commission Act of the Government of Puerto Rico to establish a specific regulatory framework for the digital market. The bill would include requirements for operators, providers, and players, as well as provisions aimed at strengthening user protection and activity oversight.

“We want to promote medical innovation with patient protections, establish clear rules for online gambling and allocate its proceeds to our retirees, facilitate compliance with divorce agreements, and expand access for deaf individuals to Government services,” González Colón stated.

A new tax to fund pensions 

One of the central points of the proposal is the creation of a tax on the adjusted gross gaming revenues. The funds raised would be earmarked to fund pension increases for retirees of the Government of Puerto Rico.

However, the official announcement did not specify the tax rate that would be applied nor the amount of the projected pension increases.

The governor pointed out that the initiative seeks to link the regulation of an economic activity with a priority of her administration: improving the income of those who retired after working in public service.

The proposal also includes measures for responsible gaming, cybersecurity, and the prevention of fraud and money laundering, with the objective of establishing operating conditions and control mechanisms for the market.

The Gaming Commission to have a central role in oversight

The bill would grant enforcement powers to the Gaming Commission, which would work in coordination with the Department of the Treasury, the Office of the Commissioner of Financial Institutions, and other government agencies.

This framework seeks to coordinate the oversight of the sector with the financial and tax controls necessary to implement the new regime.

“We seek to establish a supervisory structure that includes consumer protections and allows the proceeds of the tax to be allocated to funding increases in their pensions,” González Colón maintained.

Three other legislative initiatives In addition to the regulation of online gambling, the governor introduced three other measures related to medical innovation, divorce procedures, and public service accessibility.

Clinical innovation and regenerative medicine 

Measure A157 proposes creating the Clinical Innovation and Regenerative Medicine Act of Puerto Rico, with the purpose of establishing a framework for innovative treatments and encouraging investments in facilities dedicated to producing, processing, and manufacturing regenerative medicine products.

The bill contemplates the creation of a Clinical Innovation and Regenerative Medicine Board, attached to the Department of Health, and establishes requirements regarding permits, quality, safety, professional competence, informed consent, and patient protection.

It also provides mechanisms to document the origin and custody of cellular products, record clinical results, and apply enforcement measures and penalties. The initiative expressly excludes certain activities linked to embryonic stem cells.

Procedures for notary divorces Measure A159 seeks to modify Article 473 of the Civil Code to establish the applicable procedure when one of the parties breaches the stipulations agreed upon in a divorce formalized before a notary.

Recognition of sign languages Finally, Measure A160 proposes recognizing American Sign Language (ASL) and Puerto Rican Sign Language (LSPR) in the governmental sphere, through a public policy aimed at improving access for deaf individuals to public services.

Implementation would be progressive and subject to available resources. Additionally, the bill contemplates training, collaboration with community organizations, regulations, and periodic reports.

With these initiatives, the Government of Puerto Rico seeks to advance simultaneously in the regulation of new economic activities, the funding of pension commitments, and the expansion of guarantees for access to public services.