Puerto Rico Gaming Commission seeks to reverse slots override

As if that were not enough, in less than two weeks, the government entity faces another legal lawsuit that challenges the legality of the actions of the officials who lead said Commission.

On July 24, the legal representation of the agency requested Judge Glorianne Lottie Rodríguez to reconsider her ruling of July 14, which resulted in the invalidation of both regulations that legalized the slot machine industry. The first of these regulations allowed the granting of the first 100 licenses to gambling machine operators. The second regulation, on the other hand, enables the implementation of an interconnection system for these machines with the Department of the Treasury, which allows the government to supervise their operation and receive income.

Despite the court ruling, Graciani Betancourt, a lawyer for the CJ, commented that the licenses granted in February are not invalidated. “As long as the judicial process remains in its course, the regulations are in force because the sentence is not final and firm. This means that the process carried out by the Commission in the granting of licenses continues in force and the Commission continues with its process of implementation of the law and regulations, ”the attorney told Metro.

Judge Lottie Rodríguez favored the proposals of the Electronic Games company and determined that the Tourism Company did not have the power to enact both regulations that began in 2018 when the CJ had not yet been created. Instead, it stated that the Legislative Assembly conferred this authority only on the Gaming Commission as of its creation through Law 81 of 2019. The lawyer anticipated that, if it does not prevail before Judge Lottie Rodríguez, they will challenge the judicial decision before the Court Appellative.

Even on July 30, another group of gambling machine operators filed another lawsuit against the Commission in which they argue, among other things, that the executive director of the CJ, Orlando Rivera, violates the court order by requiring the payment of the licenses granted.

"The arguments, in my opinion, that the Commission is carrying out procedures with null regulations is inadmissible," argued Betancourt, who indicated that the Commission has not yet been summoned in this second lawsuit.

While the legal proceedings continue, the lawyer mentioned that the Gaming Commission expects to receive $ 15 million from the collection of these licenses from the 100 authorized operators. However, from the first process that expires on September 24, it could raise up to about $ 5 million in the collection of licenses.

And despite the fact that the Court's ruling also annulled the regulation of the interconnection system of the machines, Betancourt commented that this process can continue since it is authorized in Law 257 of 2018. He indicated that it is currently in the hands of the Services Administration Generals (ASG) select a company that implements this system.

In a previous interview with Metro, Rivera acknowledged that currently the government does not obtain income from the operation of gambling machines and that more than 80,000 machines are operating illegally. According to Betancourt, if this system is implemented, the government could receive around $ 130 million annually.

On the other hand, the Fiscal Control Board said in written statements that it waits for the Gaming Commission to deliver the regulations that would regulate the industry. "The decision of the Court of First Instance gives the Gaming Commission the opportunity to prepare and submit to the Board the regulations it deems necessary," said the Board.

DENIES IRREGULARITIES IN THE GRANT OF LICENSES
Betancourt rejected the allegations of irregularities in the process of granting the first 100 licenses to gambling machine operators.

In the new lawsuit against the Gaming Commission - filed on July 30 by some 30 gambling machine operators - it is argued that the agency granted licenses to several companies that did not have the endorsement of the Department of the Treasury. Given this, they allege that these companies - like former Senator Eric Correa's The Winning Key - were not authorized to receive a license under the Gaming Commission.

“They are allegations and people who did not fall into those first 100 [operators] - because they had to be evaluated according to the order of arrival - and that is common. That happens in all industries; that person who did not arrive on time or who was left out will always try to find a way to signal. But for those allegations to be true, it is not like that, ”said Betancourt. He added that, after a senatorial request, all the licenses authorized by the government entity were investigated and he assured that they did not detect irregularities.

Meanwhile, the New Progressive representative José Aponte supported the Court's decision and stated that "there must be proactive action by the Gaming Commission to prevent the machines from continuing on their own."

“I understand that it was an inappropriate process because, not having yet the approved regulation, additional licenses were being granted and many machines were on the streets without a regulation. And after that, giving additional licenses. I think it was an incorrect procedure ”, said Aponte.

On June 23, the legislator presented a resolution to investigate the granting of these licenses and the process to interconnect them with the Department of the Treasury. However, Aponte admitted that the resolution remains detained in the legislative process since the majority of the Popular Democratic Party (PPD) has not responded to it.