Fifty per cent of revenue generated by legalisation will be used for a police retirement fund. Forty five per cent will be earmarked in order to help municipalities through the Health Insurance Administration (a body which implements and administers island-wide health insurance system) while the remaining five percent will be used for expenses related to regulating the now legal industry.
The new rules on slot machines on the island are part of a much wider draft of new tax measures designed to provide nearly US$2 billion in tax relief over the next five years. In April Governor Rosselló announced the introduction of his bill for proposed changes to the Puerto Rico Internal Revenue Code.
Having signed the bill Rosselló said that it would have a huge impact on the economy which is still slowly recovering from the devastating effects of hurricanes Irma and Maria. “Despite the deficit we had at the beginning of our mandate, today we are making a reality of the new tax model that we achieved after making the necessary fiscal adjustments and which establishes an ideal scenario for investment, as well as a relief for all taxpayers and merchants.”
According to the Senate President, Thomas Rivera Schatz, legalising slot machines outside of casinos would generate about US$160 million in taxes per year. Rivera Schatz said that new regulations were needed and operators had been requesting changes to Puerto Rico’s gaming laws for some time. Speaking before the Senate in August Rivera Schatz argued that allowing these machines to generate cash prizes would not necessarily mean unfair competition for the casino industry, as they target a different customer base.
Source: GMB / G3 Newswire
