Return of Regulation in Puerto Rico After Years of Instability
The Scene in Puerto Rico: Route Gaming Machines and the New Regulations
Get ready for a change in the gaming landscape of Puerto Rico as the Gaming Commission kicks off assessments for Route Gaming Machine (RGMs) license applications and renewals. This shift follows two years without clear regulations, with the latest developments formalized through Regulation Number 9647, approved by the Financial Oversight and Management Board back in December 2024.
The new regulations, rolled out at the start of 2025, set the stage for operators aiming to enter or maintain their presence in Puerto Rico's gaming industry. Wholesalers with valid licenses under the previous regulation are currently admissible, prioritizing regularization of existing players and streamlining the process. Businesses hosting RGMs must submit details of their locations, along with proof of the permits for each establishment.
Moving forward, further stages will accept applications from various gaming sector actors, including business owners and service providers. The Commission intends to announce launch dates and conditions for these later stages promptly, encouraging the community to keep abreast of official communications to sidestep any licensing hurdles.
As per the regulations, no RGM is to operate in Puerto Rico without the appropriate license, clearly displayed on the device. Each machine will be connected to operators' internal systems, furthering oversight and pinpointing potential irregularities.
Combat Against Illegality and police support
The main objectives of this regulation include curbing the spread of illegal RGMs. Interim Gaming Commission Director, Juan Carlos Santaella Marchán, anticipates this process will aid in identifying and rooting out law-breaking machines and businesses. Santaella Marchán emphasized the new regulations will make it obvious who complies with regulations and who chooses to evade responsibilities.
Hand-in-hand with the Puerto Rico Police, the Commission aims to direct funds raised through licensing and oversight towards boosting the retirement system for police personnel. This action responds to long-standing police demands for access to these revenues, which they consider critical for securing their retirement.
Changing the Game for RGMs in Puerto Rico
The introduction of regulations signals a transformation in the route gaming industry in Puerto Rico. With license requirements for each machine and the need to connect to internal systems, the industry will see increased transparency and control. This shift should lead to a reduction in the underground economy and enhanced revenue for government coffers.
In contrast, the phased implementation of the licensing process allows the Commission to efficiently manage the influx of applications and prevent administrative bottlenecks, crucially important in an environment where demand for regularization is high following two years of legal uncertainty. Nonetheless, this process presents challenges: operators who fail to adhere to the established requirements within the given timeframe risk losing their licenses and being pushed to restart the process, increasing pressure on less prepared or administratively weaker actors.
As the industry journeys through this transition phase, compliance with the new regulations will be vital for viability. The Commission's message is clear: only those who align with the law and transparency will continue to operate in Puerto Rico's gaming market.
The implementation of Regulation Number 9647 signifies the inception of a new era for RGMs in Puerto Rico. The focus on regulation, oversight, and police retirement system support represents an effort to tame a long-contentious industry, channel its benefits toward the common good, and ensure the island's economic development. The success of this strategy hinges on the Commission's effectiveness in administering the licensing process with precision and the operators' ability to adapt to the new legal demands.
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- The new regulations for Puerto Rico's gaming industry, as outlined in Regulation Number 9647, aim to curb the operation of illegal Route Gaming Machines (RGMs) and encourage licensing compliance among businesses.
- As part of the gradual implementation of these new regulations, wholesalers with valid licenses will be given priority in the process of regularizing their presence in the gaming industry.
- In the coming stages, applications will be accepted from a variety of gaming sector actors, including casino-games service providers and business owners.
- To ensure transparency and control in the casino-and-gambling industry, the new regulations mandate that each Route Gaming Machine (RGM) will require a license and be connected to operators' internal systems, enabling greater oversight.
