Puerto Rico: Regulation returns after years of uncertainty
The Puerto Rico Gaming Commission has started the process of application and renewal of licences for operators of Máquina de Juegos de Azar en Ruta (MAJAR), also known as slot machines, after two years without clear regulations. This move, made official by Regulation Number 9647 and approved by the Fiscal Oversight Board in December 2024, that had been operating in legal limbo and to reinforce its contribution to the Puerto Rico Police Retirement System.
The new regulation, introduced in early 2025, establishes the procedures and requirements to be met by both applicants for new licences and those seeking to renew them.
Better control with a phased process
The Commission has opted for a phased implementation strategy. In the initial phase, applications will be accepted exclusively from operators who possess valid licenses under the previous regulations. This will prioritise the regularisation of those who are already in the system and promote a more organised and efficient process. Operators must submit a list of the businesses where their machines are located, along with the documentation that accredits the use permits of each establishment.
In subsequent stages, applications will be open to all other actors in the sector, such as business owners and other providers. The has said to announce the dates and conditions of these next phases in a timely manner, stressing the importance for all interested parties to stay tuned to official communications.
The regulation establishes that no terminal may operate in Puerto Rico without a licence and the corresponding tag, which must be visible on the terminal. In addition, each terminal must be connected to the operators’ internal systems in order to control and identify possible irregularities.
Impact on the fight against illegality and police support
One of the main objectives of this regulation is to combat the proliferation of illegal machines. According to Juan Carlos Santaella Marchán, the interim director of the Gaming Commission, renewing licenses is the first step in identifying and removing machines and businesses that operate outside the law from the market. Santaella Marchán emphasised that this process will allow a clear distinction to be made between operators who comply with the regulations and those who seek to evade their responsibilities.
The Commission, in collaboration with the Puerto Rico Police, intends that the funds collected through the licensing and control of slot machines be used to strengthen the retirement system for police officers. This measure responds to a historical demand of the police force, which sees this income as a way to guarantee their retirement.
Industry and market changes
The gambling business in Puerto Rico is undergoing a transition. On one hand, the requirement to connect to internal systems and the licensing required for each terminal represent improvements in control and transparency. As a result, there should be more revenue from taxation and licensing concepts.
On the other hand, in a setting where regularisation is highly desired following two years of legal limbo, the Commission can better control the flow of applications and prevent administrative bottlenecks by implementing the policy gradually. However, there are drawbacks to this approach as well: operators who fail to meet the standards by the deadline risk losing their licenses and having to start over, which puts further strain on operators who are ill-prepared or lack administrative capabilities.
Those who identify themselves as open and legal will be able to continue operating in the Puerto Rican market, according to the Commission’s unequivocal statement.
The entry into force of Regulation Number 9647 marks the beginning of a new era for on-road gaming machines in Puerto Rico. The commitment to regulation, control, and support for the police retirement system reflects a desire to bring order to a historically conflictive sector and to channel its benefits towards the common good. The success of the strategy will depend on the Commission’s ability to implement the licensing process rigorously and on the response of operators to the new legal requirements.
This article was first published in Spanish on 23 April 2025.
