Puerto Rico freezes new route slot licenses after appeals ruling
The battle over the future of the route slot machine business in Puerto Rico has entered a new round in the courts. The Court of Appeals granted an appeal filed by the Gaming Commission and ordered a halt to proceedings stemming from a previous ruling that compelled the agency to receive and process new applications from operators. The decision puts a pause on the entry of new players into the market while the merits of the dispute are resolved.
The conflict had been escalating for weeks. Judge Iris Cancio González, of the San Juan Court of First Instance, had ruled in favor of a group of merchants organized under UNOMAR and ordered the regulator to accept, process, and evaluate submitted applications within five days. For the magistrate, the Commission was failing to comply with express obligations of the regulations by refusing to formally receive the requests. The agency's appeal changed the scenario and, with the approval of the higher court, the receipt of new license applications was automatically suspended.
“The Court of Appeals accepted said appeal and ordered the suspension of proceedings before the Court of First Instance until the appellate court rules otherwise,” explained the executive director of the Gaming Commission, Juan Carlos Santaella Marchán. The official stressed that the decision “preserves regulatory order” while the central points of the litigation are clarified and reiterated that Law No. 11 of 1933 establishes a clear framework on deadlines and conditions for both current licensees and those aspiring to enter the system.
The plaintiffs' lawyer, Frank Torres Viada, had celebrated the initial ruling and maintained that the Commission “could not continue to close the door” to new market participants. The discussion revolves around the interpretation of the current regime and, above all, whether the law obliges the regulator to enable the entry of new operators before 2028 or if special deadlines that privilege those who already have a license are still in effect. The local industry was divided between those who advocate for immediate opening and those who prefer to first organize the current inventory.
One of the central facts that marked the dispute is the remaining machines still available within the legal limit. The first instance ruling had indicated that there are approximately 2,000 free units within the limit of 25,000 authorized machines in Puerto Rico, a figure that the plaintiffs use to justify the opening of the registry. The Commission, on the other hand, insists that the process must be “orderly, legal, and in accordance with legislative intent,” which implies respecting the chain of priorities established by law.
The Puerto Rican case connects with a broader trend in Latin America and the Caribbean, where several markets are debating whether to open new licenses to attract investment or first consolidate existing players. Countries like the Dominican Republic, Costa Rica, and Panama observe similar processes in their respective slots and casino sectors, in a scenario where the pressure for more tax revenue coexists with the need to avoid oversupply. The outcome in Puerto Rico will set a regional precedent on the judicial margin for discussing how the route gaming business is distributed.
Tags: Puerto Rico, Puerto Rico Gaming Commission, route-based slot machines, casino licenses, gambling regulation, UNOMAR