Noticias del operador

Puerto Rico – Puerto Rico casinos to face new competition from slots outside casinos

The governor of Puerto Rico, Ricardo Rosselló, has signed new rules into place, which allows legalised slot machines outside of casinos.

The law was approved by the Legislative Assembly in November. The new law provides for the legalisation of 25,000 slots that have up until now operated illegally.

Fifty per cent of revenue generated by legalisation will be used for a police retirement fund. Forty five per cent will be earmarked in order to help municipalities through the Health Insurance Administration (a body which implements and administers island-wide health insurance system) while the remaining five percent will be used for expenses related to regulating the now legal industry.

Las nuevas normas sobre las máquinas tragamonedas en la isla son parte de un borrador mucho más amplio de nuevas medidas fiscales diseñadas para proporcionar casi 2 millones de dólares en alivio fiscal durante los próximos cinco años. En abril, el Gobernador Rosselló anunció la presentación de su proyecto de ley para cambios propuestos al Código de Rentas Internas de Puerto Rico. La reforma propuesta, HB 1544, busca simplificar la estructura tributaria existente no sólo mediante la adopción de medidas fiscales que promuevan el crecimiento económico sino también fomentando un entorno de cumplimiento voluntario de todos los sectores.

Having signed the bill Rosselló said that it would have a huge impact on the economy which is still slowly recovering from the devastating effects of hurricanes Irma and Maria. “Despite the deficit we had at the beginning of our mandate, today we are making a reality of the new tax model that we achieved after making the necessary fiscal adjustments and which establishes an ideal scenario for investment, as well as a relief for all taxpayers and merchants.”

However, he Financial Oversight and Management Board for Puerto Rico wants more details as to how legalised slots will help boost government revenues. After the governor signed the bill, the board, which consists of seven members, requested more information on the slots that will be legalised and how they will affect government revenues. The administration has until the 19th of this month to provide the data.

In a statement, the board said: “The Supervisory Board has repeatedly expressed its concern that the video lottery provisions included in the legislation are not neutral for the Treasury, since the Government and the Legislature have not presented sufficient evidence that these changes will not cannibalise existing revenues of the Government’s fiscal plan.”

However Rosselló, said that the issue had already been resolved and there was nothing else in particular that needed to be discussed. According to the Senate President, Thomas Rivera Schatz legalising slot machines outside of casinos would generate about US$160 million in taxes per year. Rivera Schatz said that new regulations were needed and operators had been requesting changes to Puerto Rico’s gaming laws for some time. Speaking before the Senate in August Rivera Schatz argued that allowing these machines to generate cash prizes would not necessarily mean unfair competition for the casino industry, as they target a different customer base.