Puerto Rico Boosts Its Gaming Industry: Regulation, Growth, and Expansion

The conference, New Regulation and Gaming Developments in Puerto Rico, held within GAT Cartagena, highlighted the advances in regulations and expansion of the sector on the island. Juan Carlos Santaella, Executive Director of the Puerto Rico Gaming Commission, presented the renewal of operating licenses, the economic impact of gaming, and the efforts to combat illegality, consolidating Puerto Rico as a benchmark in the region.

Puerto Rico Gaming Commission 

First, Santaella summarized the new regulations in Puerto Rico. 

The Puerto Rico Gaming Commission is the government entity responsible for regulating the gambling industry, pursuant to Act No. 81 of 2019, which authorized activities such as sports betting, electronic casino games, and all social gaming.

Santaella stated that, after two years in limbo, the  Commission has begun the process of renewing licenses for operators of On-the-Road Gambling Machines (MAJAR), known as slot machines.

License renewal

Santaella added that the Commission is now available to renew licenses, emphasizing the fight against illegality and using Colombia's gambling law as an example.

A bit of history

Giving a bit of history, he explained that the first sports betting company began operating in Puerto Rico in 2022. "Today, we already have nine sports betting companies operating across the island," he emphasized. “We currently have 20 casinos, and we are expanding to reach 25 casinos in four years.”

A curious fact

He then added a curious fact: After Nevada, in 1931, Puerto Rico was the second jurisdiction in the United States to pass legislation allowing casinos.

“We also regulate the equestrian sports industry, with everything related to horse racing. We have 5,000 slot machines in horse racing betting terminals,” he commented.
 

Santaella then listed the objectives of the Puerto Rico Gaming Commission:

-Gaming in Puerto Rico is transparent and safe, both for the licensed operator and for the player who comes for fun and entertainment.

-Promote responsible gaming and combat gambling addiction through a campaign.

-Tax collection: This benefits the University of Puerto Rico, the General Treasury Fund, municipalities, police retirement funds, and the Department of Tourism. “Therefore, the gaming industry is a pillar for maintaining extremely important sectors for the island's economy and future,” he emphasized.

“Puerto Rico's law has been seen as a model for the Caribbean, and the island is an attractive destination for international operators, contributing to the development of the economy,” said Santaella, who also highlighted a significant expansion in the number of operators.

“We have worked significantly to reduce the approval time for licenses, thanks to the adoption of new procedures and new technologies. The maximum approval time has been reduced to one month,” he noted.

Santaella continued: “Most operators have experienced exponential growth in the first year since sports betting began in Puerto Rico. By 2022, they had revenue of $7 million, last year $19 million, and for the next fiscal year, the projection is around $18 million. Furthermore, we seek to end illegality and promote the legality of slot machines.”

He also spoke about the growth of these companies since the pandemic, and how they began as land-based gaming companies and have since established their online platforms.

“During the 2023-2024 period, Puerto Rico collected $362.4 million in net revenue, which is divided between government revenue and casino revenue. In Puerto Rico, the casinos and the government operate as a partnership, where each party is basically a 50/50 partner,” Santaella stated.

Finally, he commented on the future of the sector on the island: “During the next four years, we expect to open between four and five casino venues in Puerto Rico. We also expect to continue improving processes and generating more jobs,” Santaella concluded.