Puerto Rico regulators warn about gambling bill

Puerto Rico regulators warn about gambling bill

The Treasury, Budget, and PROMESA Committee of the Senate of Puerto Rico held an on-site hearing this week at Casino Metro as part of the evaluation process for Senate Bill 960, an initiative that aims to significantly expand the range of gambling options permitted on the island. The activity brought together Senator Migdalia Padilla Alvelo, chair of the committee, industry representatives, and officials from the Gaming Commission.

The bill, authored by Senator Roxanna Soto Aguilú, proposes amending the Gaming Commission Law to enable new modalities. Among the novelties are independent poker rooms outside of casinos, an expansion of online sports betting, e-sports betting, and interactive electronic lotteries operated through digital platforms and mobile applications. The initiative also incorporates licensing requirements, supervision mechanisms, and policies for problem gambling prevention and minor protection.

Initial reactions from the industry were cautious. Juan Santaella Marchán, executive director of the Gaming Commission, stated that the casino sector operates under very demanding regulatory standards and that expanding the offering without coordinating equivalent requirements could create unfair competition. The concern, as he described it, is that additional revenue might not represent new money but rather a redistribution of current consumption towards operators with fewer regulatory burdens.

Representatives from the hotel and tourism sector offered a similar perspective. Fabiola Pagán Meléndez and Esteban López, from the Hotel and Tourism Association, warned that the measure could divert players to establishments that do not meet the same safety and compliance parameters, to the detriment of casinos integrated into the hotel system. Ismael Vega, general manager of Casino Metro, recalled the investment required to operate under the current framework and expressed specific concern about independent poker rooms.

For Latin America and the Caribbean, the Puerto Rican debate serves as a test bed. The island already has a mature industry, with hotel casinos, traditional lottery, and self-exclusion, and is now discussing how to open up to the digital ecosystem without unbalancing the land-based model. The discussion is structurally the same as that faced by Costa Rica, Panama, and the Dominican Republic, places that are also seeking to reconcile their land-based heritage with new online modalities without losing volume or revenue.

Tags: Puerto Rico, San Juan, Puerto Rico regulation, Gaming Commission, gaming expansion, LatAm casinos