Puerto Rico: Slots still don't generate income for the government ark
Monday 24 de May 2021 / 08:19
2 minutos de lectura
(Puerto Rico).- The Director of the Gambling Commission assured that around 80,000 slots still operate outside the law. Although in February the Commission started to grant licenses for slot operators outside of the casinos, the government has not yet generated revenue from that industry.
The Law 257 from 2018, which amended the Internal Revenue Code and regulated the operation of these gaming machines, establishes that they must have an interconnection system that allows the government to ensure compliance with the law and with their income contributions.
The director of the Gaming Commission, Orlando Rivera, admitted that they still do not certify all gambling machines since they do not have the personnel to control that they comply with the law. He also said that, at the moment, they have not established an interconnection system, so the machines operate outside the law.
“To be connected is a process that has to have an RFP [request for proposals] and they have to be certified. They [machine operators] do not agree with them connecting ... All the machines that are in right now, which are almost 80,000 or more, are illegal, "said the official. The law allows that in its first years of validity only 25,000 machines can operate on the entire island.
Rivera stated that the Commission, at the moment, does not have enough personnel to inspect the machines. Likewise, it justified the delivery of the first 100 licenses since it argued that the law allows it to first certify the operators, then order them to pay a $ 1,500 tag and, finally, to connect to a centralized government system. It acknowledged that it withdrew a request for proposals (RFP) to establish the system as there were “gaps” in the applicable requirements.
The auction notice was postponed until further notice.
Likewise, Rivera acknowledged that it will not be until the next fiscal year - which begins on July 1 - that the State could begin to receive income from gambling machines. He assured that, in that period, the government could receive up to $ 15 million in collections.
According to Law 257 and 2018, 33% of the proceeds from the machines will go to the Commission and the remaining 67% will go to the owner of the business or the machine. Of the 33%, 50% will be directed to the removal of the Police, 45% to cover the contribution of the municipalities to the Puerto Rico Insurance Administration (ASES) and 5% to the Gaming Commission.
Rivera even mentioned that before issuing the licenses, the Treasury Department told him that there were some 3,100 operators who were entitled to the license to operate the slot machines. Finally, of this group, Rivera pointed out that only 100 certified.
"If so, how does the Commission ensure that these other machines, which are clearly illegal, do not continue to operate?" Asked Metro. “I have no human resource, simple. I can't leave until the OGP [Office of Management and Budget] sends me the budget and I can recruit the staff to do that job, ”replied Rivera, who indicated that he would need 100 additional staff.
On April 22, the television program Ahí está la Verdad, mentioned that the Gaming Commission was granting licenses for gambling machine operators to people who did not have licenses prior to 2018, as required by law. He also pointed out that some corporations unveiled some type of move for the children and couples of operators to request licenses, despite the fact that the law only allows a single person or corporation to have a license.
Rivera, however, rejected some type of irregularity, since the law does not prohibit the spouses or children of an operator from obtaining licenses.
The official, however, assured that the Commission is auditing the licenses that were granted in the past months. "If there are licenses that do not pass scrutiny or auditing, I order them to be canceled," he said.
What happened to sports betting?
The director of the Gaming Commission, Orlando Rivera, indicated that the regulation that authorizes sports betting on the island continues to be evaluated after it was delivered to the commissioners. Likewise, the official mentioned that the fantasy league companies, Draft Kings and Fan Duel, presented just over 160 pages in proposed amendments to the regulation that will also regulate said industry.
He added that he hopes to submit the regulations to the State Department in June. "It cannot happen in August that I do not have regulations," said Rivera. "I would tell you, that for the World Series [of baseball] we have already approved games," he added.
Categoría:Gaming
Tags: Sin tags
País: Puerto Rico
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