Poker Writer
A battle over gambling machines in Puerto Rico has begun as regulations go into effect that direct law enforcement to confiscate unlicensed machines. Authorities are attempting to crack down on machines that they say are illegal. In response, about 30 owners of establishments that house “roadside machines” have filed suit against the gaming commission.
Last week, the Puerto Rico Gaming Commission adopted procedures in agreement with the police bureau. The procedures provide details on the stages of the process, including the seizure of machines, rights to appeal, and the handling of confiscated property, such as the machines.
In some ways, the battle mirrors those happening in several U.S. locales. For instance, Missouri is cracking down hard on what the attorney general says are illegal gambling machines. Things are getting heated in Chicago after the city included controversial video gaming terminals (VGTs) in its 2026 budget. And Pennsylvania casinos now have another unwelcome competitor. Gov. Josh Shapiro plans to regulate and tax so-called skill games there.
Generally speaking, casinos oppose the proliferation of off-property gambling devices, since allowing them in non-casino establishments lessens or eliminates the need to go to a casino. Puerto Rico does have casinos at many of its resort hotels. However, there’s no indication whether these casinos play a role in the new crackdown.
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Cracking Down on the Plentiful Illegal Gaming Machines
There are more than 80,000 illegal gambling machines in Puerto Rico, according to the commission’s estimates. The Gambling Commission has seized as many as 4,000 so far amid the intensified regulatory environment. A recent raid in San Juan confiscated more than 30 machines in mid-March.
The executive director of the commission, Juan Carlos Santaella Marchan said that the confiscations and raids will continue:
This second operation demonstrates that the oversight process remains active. Route-based gambling machines can only operate within the established legal framework, and those who ignore the law face seizures, confiscations, and the corresponding penalties.
Machine Operators Take to Court
In response to the increased crackdown on illegal gambling machines, 30 gambling machine operators have filed a complaint with a San Juan court. The operators allege that the gaming commission deliberately ignored the licensing process and refused to receive their applications.
The attorney for the plaintiffs also argues that the gaming commission has been inconsistent in granting licenses, saying that, “They’ve issued licenses left and right to people who didn’t have machines before and didn’t have valid licenses.”
He continued to say that the gaming commission has adopted a closed-door policy, which has led to denying potential merchant access. The lack of urgency in the commission granting licenses leads to many merchants being technically outside the confines of the law and, therefore, subject to the increasing number of raids.
The attorney, Frank Torres Viada continued:
That is what compels them to go to court to request something as simple and logical as having the agency that regulates this industry consider their license applications.
Gaming Commission Response
The gaming commission believes the attorney is misinterpreting the law. They believe that the amended gambling machine law clearly establishes a maximum of 25,000 licenses and sets the conditions that must be met before a new application is considered.
According to the commission, no new licenses are allowed until the existing licensees’ two-year grace period is up. During that period, they’re allowed to add machines to their establishments until they hit the 250-machine max.
The commission urged citizens to report businesses operating in violation of the law, in confidence. They can do so through the gaming commission’s official website.
