Puerto Rico took a major step toward expanding competition in the gaming sector after the San Juan Court of First Instance ordered the Puerto Rico Gaming Commission to receive and process license applications for operators of route gaming machines (MAJAR), slot machines installed outside casinos in authorized establishments. The decision forces the regulator to move forward with a market that has been undergoing transition under the new Regulation 9647 and opens the door to broader formalization of long-standing operators.
The case was brought by approximately 30 route gaming operators, who argued that the Commission had refused to receive, process and adjudicate their license applications. The court order does not eliminate regulatory controls, but it does compel the regulator to process applications within the framework of the new legal system. The change comes at a critical moment, as Puerto Rico seeks to digitally connect gaming machines, increase operational traceability, improve tax collection oversight and reduce illegal gambling activity.
The core regulatory framework is Regulation 9647, approved by the Financial Oversight and Management Board for Puerto Rico in January 2025, which completely reorganized the MAJAR system. The regulation requires mandatory licensing for each machine, visible identification tags, technological interconnection, internal monitoring, operational traceability and digital supervision.
The Gaming Commission officially launched the interconnection process focus in enforcement on January 14, 2026, giving operators 90 days to prove contracts or acquisition of certified technology providers connected to the centralized regulatory system.
The main regulatory authority is the Puerto Rico Gaming Commission, created under Law No. 81-2019, with jurisdiction over casinos, sports betting, fantasy sports, horse racing and route gaming machines. Its executive director is Juan Carlos Santaella Marchán. Puerto Rico’s gaming model combines regulated casinos, online sportsbooks, fantasy sports and MAJAR operations, with tax rates of 7% for retail sports betting and 12% for online wagering.
Fiscal and competitive pressure remains high. Revenue generated through licensing and machine oversight is tied to strengthening the Puerto Rico Police Retirement System, while industry studies have warned that illegal operators control more than 75% of the island’s online gambling market. The challenge now will be expanding legal competition without weakening technical controls, tax collection, digital interconnection and enforcement against unauthorized operators.
