Legislation
Puerto Rico – Puerto Rico to permit Video Lotteries
By Phil - 27 July 2015
Puerto Rico’s Treasury Department will begin the tender process for video lotteries (VLT’s) in the first quarter of 2016, according to the head to Finance Minister Juan Zaragoza.
The decision to move forward with the process was made possible after only the Senate opposed the proposal that amend lottery rules rather than both bodies.
“The way is open for us to continue with the project. The law required the express opposition of both bodies which did not happen,” said Mr. Zaragoza.
The official said that the tender process will begin on August 15. The Minister defended the move saying that the issue had been pending for ten years and that it had been his responsibility to put the amendments forward. The official said that the bidding process will be thorough and will be open to competition and that two or more companies interested in operating the system would take part in the bidding process. The competition, he added, would maximise the economic performance of the business.
Rumours that the government had been preparing a measure which would allow video lottery system through a backdoor deal first began to circulate in March this year. According to critics the deal had been hidden from legislators because a similar bill had already been defeated in the last Legislative Assembly. Critics of the new bill claim that it is unconstitutional as only the Legislature may make changes to gaming laws and gaming legislation should and be cannot be approved by the Ministry of Finance.
Mr. Zaragoza has come under fierce criticism from many lawmakers in the House of Representatives and the Senate for the amendments. However, the Minister defended the strategy of implementing video lotteries by amending the rules, and not through legislation. He also rejected claims that the regulations had been approved in order to benefit the Caribbean Cage gaming company, which according to reports in local press has expressed interest in running VLT’s in Puerto Rico for some time.
Headquartered in Puerto Rico Caribbean Cage focuses on the installation, operation and management of VLTs, linked gaming systems and game content throughout the Caribbean and Latin America.
The new act is bound to cause growing anger especially amongst those involved in the casino industry. Only last week the casino in the Condado Plaza Hotel in San Juan closed its doors prompting the dismissal of 150 people. The closure has been blamed squarely on the growth of illegal gaming on the island. The arrival of VLT’s on the island will be cause for further concern amongst an industry which is already in crisis. Local interest groups have not ruled out going to court to block the new proposals.
