PRHTA rejects bill to authorize online casinos
The Puerto Rico Hotel and Tourism Association warned that the legislation could harm jobs, investments and revenues at traditional casinos while favoring virtual operators.
PhotoThe short version
- NotiCel reported that administrative measure A158 was announced on Oct. 16 to regulate online casino games known as iGaming
- El Nuevo Día and NotiCel reported that the PRHTA rejected the measure warning it could affect employment investments and revenues of physical casinos
- NotiCel reported that the PRHTA said the proposal was presented without consulting the casino industry or disclosing studies on market saturation
- According to NotiCel the measure would direct levy revenues to finance increases in public-sector retiree pensions
Industry opposition
The Puerto Rico Hotel and Tourism Association (PRHTA) has rejected a measure that seeks to authorize and regulate online casino games. The association warned that the legislation could affect jobs, investments and revenues of traditional casinos on the island. NotiCel reported that the measure known as administrative measure A158 and Proyecto de la Cámara 1514 was announced on Oct. 16.
Ismael Vega, president of the PRHTA’s Casino Committee, stated in writing that it is unacceptable for a proposal of this magnitude to be presented without consulting the casino industry. "Es inaceptable que una propuesta de esta magnitud se presente sin consultar a la industria de casinos", he said according to NotiCel. He added that casinos generate employment, invest capital and operate under strict regulation. The policy should consider those who sustain the activity and the communities that depend on it. El Nuevo Día reported the PRHTA rejection.
Miguel Vega, former president of the PRHTA board, said allowing the same games to be offered virtually without comparable investment in facilities, infrastructure and jobs could weaken existing casinos according to NotiCel. He noted that the consequences reach hotels, tourism investment and families dependent on those jobs. The PRHTA also questioned the lack of recent studies on market saturation and economic impacts.
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What the sources posted
Posts and statements below are the sources' own words, quoted as published. They are not independently verified.
Es inaceptable que una propuesta de esta magnitud se presente sin consultar a la industria de casinos.
Our translation: It is unacceptable that a proposal of this magnitude is presented without consulting the casino industry.
The source's own statement, as quoted by NotiCel. Not verified by PuertoRico.com.
Bill details and concerns
According to NotiCel the legislation would establish a legal framework for iGaming and direct revenues from a levy on the activity to finance increases in public-sector retiree pensions. It differs from already authorized online sports betting. NotiCel reported that according to the PRHTA the project also contemplates tax incentives that could favor virtual-casino operators while physical establishments continue to bear their current tax obligations and investments in brick-and-mortar facilities.
The PRHTA warned that this could create unequal competition and reduce revenues of casinos linked to the hotel industry. The initiative includes requirements for operators, providers and players as well as consumer protection, responsible gaming, cybersecurity and measures against fraud and money laundering. It would establish oversight by the Gaming Commission in coordination with the Department of Treasury and other agencies.
Where the sources differ
All sources agree that the PRHTA rejected the proposal to authorize online casino games citing risks to jobs, investments and revenues of traditional casinos. El Nuevo Día and NotiCel both report the PRHTA position on potential harm to the industry. NotiCel provides additional details including the bill numbers (A158 and Cámara 1514), the announcement on Oct. 16, the pension funding purpose, tax incentive concerns attributed to PRHTA, direct quotes from Ismael Vega and Miguel Vega, and the lack of prior consultation or studies. El Nuevo Día offers a shorter account focused on the rejection without naming individuals or quoting specific statements.
What the reports do not say
The sources do not state the current status of the bill in the legislature, whether public hearings have been scheduled, the expected revenue from the levy, the specific tax incentives mentioned, or any response from the governor's office or bill sponsors to the PRHTA objections. No position from the Gaming Commission or Department of Treasury is included.
Sources
Every link below was opened and checked when this story was published. Official means a government body, agency or the organization itself; Reporting means a news outlet.
- Reporting Casinos objetan proyecto de juegos de azar en línea que arriesgan empleos
- Reporting Genera controversia proyecto para autorizar casinos en línea
How we checked this
NotiCel supplied most details on the bill contents, quotes from Ismael Vega and Miguel Vega, and the pension funding mechanism. El Nuevo Día reported the PRHTA rejection in general terms. The characterization of tax incentives and lack of consultation rests solely on the PRHTA statements conveyed by NotiCel.
Compiled by the PuertoRico.com News Desk from the reports and statements listed above, and checked against them before publishing. It does not include original interviews. Spot an error? Email support@puertorico.com with a link to this story.