SLOTS IN PUERTO RICO
in Puerto Rico. 2 Gross gaming revenue (‘GGR’) would be distributed as follows: 15 percent for the Off-track Betting Tellers’ Commission; 15 percent to the account for race prizes; and the rest for the racetrack —as the operator— and the service provider for the slot machines and their management system. The Horse Racing Agency, 3 along with the Treasury Department and the Tourism Company, were given 90 days to approve the regulation of the slot machines. This was logical as the Tourism Company regulated casino slot machines, while the Treasury Department fulfilled the same role for the slot route industry. The regulation took years before it was finally approved. Meanwhile, several months after Act 139, in October 2004, the racetrack filed for protection under chapter 11 of the United States Bankruptcy Code. The plan was to reorganize and pay off their bondholders. 4 With no regulation in sight for slot machines, El Comandante’s owners were unable to capitalize on the June 2004 amendments to the HRISA. In January 2007, the Bankruptcy Court ordered the racetrack’s sale to the Camarero group. 5 Slot machines went live after Regulation 7625 The regulation of slot machines was finally approved in December 2008. It established a cap of 2,500 machines — far fewer than the 6,500 that Codere had petitioned for, but consistent with some regulation drafts. 6 Each OTBL can have up to 10 machines with no more than 30 super OTBLs which can have up to 20 machines. 7 Machines from the slot route industry are not allowed in OTBL
Under reglation 7625, each machine must have a single screen and must be able to connect to the central system contracted by the racetrack operator. There is a US$10 cap for each play,10 and progressive games are allowed. Machines may be played only on race days from 10:00 a. m. to 10:00 p. m. Minimum hours of operation are up to 60 minutes after the official end of the last live race. Prizes over US$500 may be redeemed only at the racetrack. Slot machine marketing is only allowed inside the OTBL and the racetrack, and via media targeted at horse racing bettors. It requires government approval and responsible gaming disclosures. In comparison to casinos and sports betting operators, there is limited oversight over the marketing of slot machines —which include distributed gaming— and horse race betting. The publicity guidelines for slot machines also seem to be less restrictive than those for casinos —which are only targeted at for nonresidents— 8 and distributed gaming where no marketing is allowed. 9 The Horse Racing Bureau can recoup monthly administrative expenses from its regulation of the slot machines. 10 As with the other gaming verticals in Puerto Rico, the machines may be played by those who are at over the age of 18. Scientific Games was contracted by the racetrack operator as its slot machine service provider, and in April 2009, began the installation of machines in the OTBL. 11 More amendments to the HRISA and the OTBL slot machines regulation In December 2014, Act 199 was approved to amend the HRISA. The statement of motives centered on the need to support the
2 See Act 221-1948, Secc. 5(B); Act 11-1933, Secc. 27 3 After the formation of the Gaming Commission in 2019, the Horse Racing Agency became a bureau under the Commission. See Act 81-2019, Art. 2.2 4 Puerto Rico Senate Diaries; Tuesday, November 14, 2006; pages 28117-28118, 28123, 28126, 28130, 28132 5 See El Grupo Camarero tomó posesión del Hipódromo El Comandante, January 10, 2007, https://www.yogonet.com/latinoamerica/noti- cias/2007/01/10/23451-el-grupo-camarero-tomo-posesion-del- hipodromo-el-comandante 6 Puerto Rico Senate Diaries; Tuesday, November 14, 2006; pages 28130-28131 7 Regulation 7625, Secc. 3.4
8 Act 221-1948, Secc. 8 9 Act 11-1933, Secc. 20 10 Regulation 7625, Secc. 8.1(c).
11 See Juegos de vídeo con premios legales en agencias hípicas, February 20, 2009, https://www.primerahora.com/noticias/puerto-rico/notas/ juegos-de-video-con-premios-legales-en-agencias- hipicas/; Orden sobre nueva solicitud de proveedor del SVJ, October 2, 2015, https://agencias. pr.gov/agencias/AIDH/Documents/Ordenes/Ordenes%202015/JH-15- 25%20ORDEN%20SOBRE%20NUEVA%20SOLICITUD%20DE%20 PROVEEDOR%201%20OCTUBRE%202015.pdf.
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IMGL MAGAZINE | APRIL 2024
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