Uncontrolled gambling expansion threatens Puerto Rico casinos
The debate about the future of entertainment and gambling in Puerto Rico has gained new momentum with the introduction of Senate Bill 960, an initiative that seeks to expand and make more flexible the authorized gaming modalities on the island. However, not all voices agree that opening new licenses is the path to economic prosperity. Former representative Ángel Matos García has spoken out to warn that the local market could be reaching a saturation point, noting that indiscriminate expansion does not necessarily translate into greater tax collection, but rather into a dangerous dilution of current revenues.
The proposal promoted by Senator Roxanna Soto Aguilú aims to modernize the entertainment offering and include new electronic gaming operations to increase public funds. However, Matos García argues that this initiative stems from an erroneous diagnosis of Puerto Rico's demographic and tourist reality. According to the former legislator, the island does not have the population base or a robust enough flow of visitors to absorb a massive offering of new machines and licenses without harming operators who are already established and comply with their tax obligations.
The risk of economic fragmentation in the sector
One of the most critical points highlighted by the former legislator is the concept of revenue dilution. Matos García argues that, by authorizing more gaming modalities in an already mature market, the Government is simply forcing the same amount of money to be distributed among a larger number of corporate players. This fragmentation does not generate real economic growth, but rather weakens the profitability of companies, which could eventually lead to operational losses and a decrease in the quality of services offered to the public.
"Puerto Rico does not have enough population or tourist flow to sustain an indiscriminate expansion of gaming. This project starts from a mistaken premise: that more machines and more licenses equate to more revenue," said Matos García.
Casinos as a pillar of the tourism ecosystem
Matos García's concern also extends to the impact this measure could have on Puerto Rico's competitiveness as an international destination. On the island, casinos operate in an integrated manner with the hotel industry, functioning as a structural component that attracts investment and generates direct and indirect jobs. Weakening traditional casinos through an oversupply of electronic games in other parts of the island could jeopardize the viability of important hotel complexes, affecting the destination's image and the security of thousands of jobs.
In addition to commercial risks, the former representative linked this discussion to the stability of resources allocated to sensitive sectors such as public safety. By reducing the profitability of regulated casinos, the funds they contribute to the treasury could be compromised, creating a domino effect on the state budget. Given this scenario, Matos García urged the Legislature to conduct a thorough economic analysis based on real data before moving forward with a reform that, in his opinion, will cause the industry to lose money instead of earning it.
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