The government of Puerto Rico has postponed a scheme to tax slot machines due to a decision by the San Juan Court of First Instance to annul the law that regulates the machines.
The ruling came as a result of a lawsuit by Electronic Games Inc., which argued that the tourist bureau (Compañía de Turismo) lacked the authority to enforce the law, which it hoped to use to collect $30 million a year.
This could delay taxation and deployment of slot machines until after the Gaming Commission completes its rules.
El Vocerom Orlando Rivera, executive director of the Gaming Commission, commented, “If the annulment of the regulations is approved, everything that I have done from January until now will be in vain. All licenses that were granted will need to be revoked and we’ll need to start a new process. I was sued and no one has called me, I’ve never seen the judge.”
He said he would appeal the lower court’s decision. Rivera said regulation is necessary so the government can maintain a record of casinos and their prizes to players. He added, “It’s what we want to implement in order to legitimize the business.”
