IMGL Magazine December 2024

PUERTO RICO

The route machine market in Puerto Rico: an emerging gaming vertical A NEW REGULATORY FRAMEWORK WILL HERALD SIGNIFICANT EXPANSION IN THE ISLAND’S SLOT MARKET AS JAIME RIVERA EMMANUELLI REPORTS

P uerto Rico’s gaming market is a mix of established and emerging verticals or sectors at various stages of development. The more mature sectors include lotteries, horse racing, and land-based casinos. By contrast, newer gaming activities such as sports betting (both land- based and online), fantasy contests, esports, and route machines have been legalized in recent years and some are under regulatory development. Of these, the slot route industry, which has been undergoing legal amendments, looks for promising growth, once all the regulations are fully implemented. This article explores the background, regulatory framework, market potential, and social contributions of the route machine vertical in Puerto Rico’s gaming industry.

Introduction Puerto Rico, a United Sates territory with a predominantly Hispanic population, has a unique socio-economic and cultural landscape. Its legal framework for gambling is similar to the United States legal system, offering a robust regulatory environment for the industry. Puerto Rico’s gaming history dates from many decades ago, with horse racing, lotteries and land-based casinos among the first legal gaming activities. Casinos were authorized on the island in 1948, making Puerto Rico the second U.S. jurisdiction to allow casino operations. 1 In the last few years, new legislation has expanded the island’s gaming landscape. New regulations have legalized land-based

1 Act No. 221 of May 15, 1948, as amended, known as “Games of Chance and Gambling Devices in Casinos Authorization Act” authorized casinos in the island

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IMGL MAGAZINE | DECEMBER 2024

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