Puerto Rico’s Gaming Commission activated Regulation 9718, establishing formal procedures for the confiscation of slot machines operating in violation of current law.
The regulation was jointly adopted by the Gaming Commission and the Puerto Rico Police and entered into force immediately.
The framework outlines the processes for the occupation, custody, conservation and final disposition of slot machines that operate without a valid license, with expired permits or in breach of gaming legislation. It also defines the administrative stages of enforcement, including seizure procedures, the right to challenge confiscations and the management of confiscated property.
Juan Carlos Santaella Marchán, Executive Director of the Gaming Commission, said the regulation fulfills a legal mandate and strengthens regulatory consistency. He stated: “The enactment of this regulation responds to an obligation imposed by law and reaffirms our commitment to implementing clear, fair and uniform processes in the oversight of route gaming machines.”
The regulation also creates a special fund to receive revenue from fees, fines and sanctions resulting from administrative proceedings, as well as related expenses, interest and other administrative collections. Confiscated machines will be transferred to a warehouse under the control of the Gaming Commission.
Revenue generated from route gaming machines will be distributed in accordance with Law 42-2020. Under the framework, the first $12m collected from licensing and operations is allocated to the Government General Fund. Once that threshold is reached, additional collections are distributed as 55% to the Puerto Rico Police Retirement Trust, 40% to municipalities and 5% to the Gaming Commission’s operational expenses.
Santaella Marchán warned: “Any machine owner, operator or business owner who operates a machine without a valid license and registration tag commits a misdemeanor offense and faces penalties of up to six months in prison, fines or both, at the court’s discretion, in addition to the revocation of other permits.”
He added: “We urge anyone who is aware of businesses engaging in these illegal practices to report them confidentially through the Commission’s official channels.”
The regulation reinforces Puerto Rico’s broader strategy to curb illegal gaming activity, strengthen enforcement coordination and ensure greater transparency and accountability across the route gaming sector.
Puerto Rico will require all route-based gaming machines to be mandatorily interconnected starting in 2026 to enable real-time monitoring and revenue reporting
