Puerto Rico Cracks Down on Illegal Slots
Puerto Rico’s Gaming Commission will start a renewed effort to crack down on illegal slot machines and other gaming machines starting in November of this year. Illegal machines are fairly common in Puerto Rico and will be seized in order to be taken out of service. Operators will also be fined.
Puerto Rico will crack down on unlicensed gaming machines starting in November. ©Carl Raw/Unsplash
A Look at the Numbers
Puerto Rico’s Gaming Commission is led by Orlando A. Rivera, who has stated that operators who do not stop illegal machine gaming on their premises will be fined at least $10,000 USD. Operators suspected of operating illegal machines will likely receive some notice and a chance to cease their activities before they are fined.
If they do not respond to these notices, illegal gaming venues will also have their machines seized. It is possible that they will then be taken to court and charged for illegal gaming as well.
The Gaming Commission is attempting to balance the seizure of illegal machines with labeling and correct licensing of some machines. That means that operators who respond well to notices given by the Commission will have a chance to continue operation once they have been deemed in accordance with Puerto Rican gambling law. Though the island is an unincorporated U.S. territory, they are allowed to determine their own parameters for legal gaming and licensing.
In order to comply with the territory’s laws, operators must notify authorities where their machines are located so they can be affixed with the proper labels and allowed to operate further. Each machine license will cost $1,5000 USD.
There are currently 100 licensed gaming operators in Puerto Rico. The Gaming Commission may expand to offer licenses to up to 25,000 machines. Each licensed operator may operate between 100 and 250 machines. Puerto Rico’s Treasury expects to collect a total of around $40 million USD for machine labeling in the coming months.
Recent Changes to Puerto Rico’s Gaming Industry
Puerto Rico’s crackdown on illegal machine gambling is another step in its efforts to regulate and tax gambling in the territory. Its government recently decided that it will take 50% of slot earnings made in the country. It also recently moved to legalize sports betting, in the hopes of buoying the gaming industry, which suffered greatly due to lockdowns during the COVID-19 pandemic.
Crackdowns in Other Countries
Puerto Rico is not the only Latin American territory to focus more on illegal gaming in recent months. In Colombia, the gaming authority has also made many moves to seize illegal machines this year, collecting hundreds of unlicensed machines so far. Colombia’s government is also examining slot machine integrity on the whole, with an aim to bring its standards in line with international regulations.
