For the entity, the increase in machines would lead to a cannibalization of revenues.
Puerto Rico.- The Fiscal Oversight Board (JSF) denied the request from Camarero Racetrack to add new slot machines at horse betting agencies. The entity considered that the measure would affect government revenues and the Police Pension Fund.
In the letter addressed to the Puerto Rico Gaming Commission, the JSF explained: "In conclusion, expanding the number of these terminals at the most successful horse betting agencies would have the effect of increasing revenue cannibalization, resulting in a decline in revenues for the government and the Police Retirement Plan. Therefore, the proposed regulation cannot be approved or implemented."
It is worth remembering that the racetrack's intention to increase the number of machines had already been strongly resisted by the Association of Police Members of Puerto Rico, and in November, the president of the association, José Taboada de Jesús, urged the Board to intervene.
In October, it was known that the Puerto Rico Gaming Commission intended to review the regulation that governs video game machines or slot machines at horse betting agencies, and apply an amendment through which the number of devices operating in the establishments could be tripled. The proposal had been presented by Camarero Racetrack, through the company Light & Wonder, which operates the machines at the racetrack. At that time, the interim director of the commission, Juan Carlos Santaella Marchán, explained that an amendment to the regulation would be necessary to increase the limit of machines that each agency can have from 10 to 15.
However, in the letter signed by the executive director of the JSF, Robert F. Mujica, they argued: "For every dollar played on a casino machine, the government receives $0.55 after revenues exceed $315 million. In the case of the (video game) machines, each dollar generates $0.225 for the government after the first $12 million with $0.12 dedicated to the Police Pension Fund. In contrast, the government generates nothing from these terminals."
The letter adds: "This is exacerbated by the fact that these terminals can participate in progressive jackpots and the limits of these prizes can be higher than other machines, which would increase the use of these machines over the machines in the casinos and the rest of the machines on route."
According to the local media El Vocero, José J. Taboada de Jesús, president of the AMPPR, celebrated the decision of the Board: "The Fiscal Oversight Board has done justice to the Police, especially to the retired colleagues by issuing this afternoon a decision that benefits the retired Police colleagues, by refusing to authorize the request of the Gaming Commission in favor of Camarero Racetrack to be authorized some 10,000 new slot machines that if allowed, would have raised to a total of 15,000 slot machines at horse betting agencies, all without contributing a single penny to the treasury, much less to the Pension Fund of our retired colleagues."
And he added: "We congratulate the members of the Fiscal Oversight Board, its executive director Robert F. Mujica for their courage to stand up and not allow the mockery of a private company that intends to continue operating in excessive profit without having to contribute anything in terms of duties or contributions to the people of Puerto Rico. Similarly, we must thank the member of the Fiscal Oversight Board, the Puerto Rican Cameron Mackenzie for his attitude of supporting the efforts and claims of the Association of Police Members of Puerto Rico."
