Puerto Rico's Court of Appeals has temporarily halted the intake of new route gaming license applications, siding with the island's Gaming Commission in an ongoing dispute over whether regulators are required to accept new operators into the recently formalized market.
Route gaming in Puerto Rico are slot-style gaming machines installed in bars, restaurants and other small businesses outside traditional casinos, operated through licensed distribution networks. The sector was formally regulated under Law 112-2024 after years of operating in a legal gray area.
The appeals court accepted the Gaming Commission's request to suspend proceedings at the lower court level, pausing a previous ruling by Superior Court Judge Iris Cancio González that had ordered the regulator to receive, process and evaluate applications from a group of operators.
The regulator argues that Puerto Rico's gaming law establishes specific terms and deadlines governing active licensees and potential new entrants.
Juan Carlos Santaella Marchán, Executive Director of the Gaming Commission, said the appeals court's decision "preserves regulatory order while the controversy is addressed in the appropriate judicial forum."
Operators behind the original lawsuit interpreted the lower court's ruling differently. Frank Torres Viada, legal spokesperson for the plaintiffs, said the decision confirmed that the Commission could not "keep the door closed" by refusing to receive applications from businesses seeking to participate in the sector.
Puerto Rico's route gaming law authorizes a maximum of 25,000 machines across the island, with a cap of 15 machines per business. As of mid-2025, the Commission had authorized more than 2,700 businesses and roughly 15,000 machines during the first licensing phase.
The route gaming sector was formalized under Law 112-2024 and its implementing regulation, approved by the Financial Oversight and Management Board in January 2025. The rollout has advanced in stages, with the interconnection period for certified machines beginning in January 2026.
Under the law, revenue generated by the sector is primarily allocated to the Puerto Rico Police Retirement Trust once initial government funding thresholds are met.
Puerto Rico's route gaming market was designed in part to channel revenue toward the Police Retirement Trust
