Puerto Rico chamber approves measure on Games of Chance law

The measure was addressed in the ordinary session that had its vote last night (33 votes in favor and 10 against).

The legislative piece, whose authors are the legislators José Rivera Madera and Orlando Aponte Rosario, has the purpose of establishing a new amount for the rights payable by concept of license, create new scales for the acquisition of licenses and vary the distribution of the income of move

The project seeks to increase treasury funds in the midst of the economic crisis caused by the covid-19 pandemic.

In addition, it is ensured that the proposed amendments "guarantee that our small and medium businesses can continue to offer entertainment without being affected by unfair competition or an onerous burden imposed by the State through the imposition of requirements that do not adjust to the reality of this industry. This law alleges the necessary precautions for the withdrawal of the Puerto Rico Police”, reads the explanatory statement. In this regard, it is indicated in the legislative piece that from each license paid, the Commission will retain $175 for its operational expenses and $75 will be used to improve the Puerto Rico Police Retirement compensation.

When the amount for en-route gaming machine licenses is $1,500, in accordance with the provisions of Section 8 of the law, $450 of the total will be used to improve the Puerto Rico Police Retirement compensation and, The remainder will be retained by the Commission to cover its operating expenses.

Likewise, it authorizes in a limited way the introduction, manufacture, possession, use, operation, installation and operation of gaming machines in businesses that operate in the jurisdiction of the government of Puerto Rico.

In turn, it validates a maximum of 25,000 on-road gaming machines in Puerto Rico during the first two years of this law's validity.

After the end of said term, the Commission may increase the number of 10,000 machines if it concludes, after a study, that there is no saturation of the gaming machine market, which will have to consider the economic impact on casinos located in hotels, as well as the saturation level of all games of chance in Puerto Rico.

If the total of 35,000 licenses issued and machines placed in Puerto Rico have been reached, the Commission may increase the amount up to a maximum of 45,000 authorized machines in total, once it meets the requirement of preparation and presentation of a study that follows the parameters described for request the increase to 35,000 machines.

The studies will be submitted to the Legislative Assembly at least 30 days before the date on which it is desired to increase the number of machines, which must be approved by means of a concurrent resolution by both bodies of the Legislative Assembly so that it can enter into force.

The measure establishes that if after the transition period for granting licenses to priority applicants has elapsed, the Commission has not yet issued the number of licenses equivalent to the 25,000 gaming machines authorized by law, then the Commission may accept new wholesale owner license applications up to the maximum number authorized in this regulation.

In all cases, it will be a requirement to obtain the license of wholesale owner of gaming machines that the total ownership comes from the capital of Puerto Rico.

Prior to granting a license, the Commission must carry out an investigation of the wholesale Machine Owner, as well as the owner of the business where the machine will be operated.

The Commission will establish regulations to govern the investigation process for applicants, which will establish the parameters that the investigation will include, which must include, but not be limited to, an evaluation of the applicant's financial capacity, criminal history and whether there are debts to the state.

The cost of the rights for each license or license renewal of gaming machines will have a charge of $250 per year, payable to the Gaming Commission for the implementation of this law, once the owner has their machines connected to the internal interconnection system. 

The maximum number of gaming machines that can be installed and operated in a business will be 10 machines (each screen counts as one gaming machine, regardless of the fact that the same gaming machine has multiple screens).