Puerto Rico Court Orders Reopening of MAJAR Gaming Machine Licensing
Puerto Rico Appeals Court Orders Regulator to Restore Gaming Machine Licensing Pathway – Ruling Reopens Access for MAJAR Operators
Key Takeaways
- The Appeals Court of San Juan ruled that inconsistencies in Puerto Rico’s laws governing MAJAR gaming machines are no longer enforceable.
- The Gaming Commission of Puerto Rico must reopen and process licensing applications for businesses seeking to operate MAJAR machines.
- Thirty domestic businesses had challenged the regulator’s refusal to process applications under Regulation 9647.
- Regulation 9647 introduced mandatory machine licensing, visible registration tags, digital monitoring and centralised technological oversight.
- The ruling affects gaming machines installed in bars, restaurants and small venues outside traditional casinos.
Court Sides With Businesses Seeking Licensing Access
The Appeals Court of San Juan has ruled in favour of businesses that sought to restore what they described as a transparent and competitive framework for the distribution and licensing of gaming machines in Puerto Rico. The court determined that inconsistencies in the legal provisions governing MAJAR gaming machines are no longer enforceable.
As a result, the Gaming Commission of Puerto Rico, or PRGC, is now required to reintroduce a licensing application process and regulatory pathway for companies wishing to operate MAJAR gaming machines. The decision obliges the regulator to process applications rather than delay or refuse them while imposing new compliance conditions.
The case stems from a legal appeal filed in 2024 and 2025 by 30 domestic businesses. These companies disputed the PRGC’s decision to deny their venues the ability to process gaming machine licences under a new regulatory framework established by Regulation 9647.
Regulation 9647 and the Interconnection Programme
Regulation 9647 was approved in January 2025 by Puerto Rico’s Financial Oversight and Management Board. The framework introduced a series of requirements for gaming machine operators. These included mandatory licensing for each individual machine, visible registration tags and the implementation of digital monitoring systems.
A central element of the reform was the obligation to connect all machines to a centralised technological platform overseen by the regulator. The PRGC formally launched this interconnection programme in January 2026. Operators were given 90 days to demonstrate that they had contracted certified technology suppliers capable of linking their machines to the government monitoring network.
According to the authorities, these measures were designed to improve tax collection, enhance operational traceability and address illegal gambling activity on the island. Industry estimates cited in the proceedings indicate that unlicensed operators continue to control a dominant share of Puerto Rico’s gaming machine and online gambling activity.
Dispute Over Application Processing
The 30 businesses that brought the appeal argued that the PRGC was selectively enforcing the new rules. They claimed that while new compliance obligations were introduced, legitimate operators were prevented from entering or formalising their position within the legal market.
The San Juan court concluded that the PRGC could not indefinitely delay or refuse to process licence applications under the existing legal framework. At the same time, it could not impose additional compliance requirements without providing a functioning administrative pathway for review and adjudication.
The court held that businesses have the right to seek licences under the applicable laws and that the regulator must ensure a transparent mechanism for reviewing applications. This decision effectively restores access to the licensing process for MAJAR machine operators who meet the established criteria.
Fragmented Legal Framework for Gambling in Puerto Rico
The dispute highlights the fragmented structure of Puerto Rico’s gambling laws. Casino gaming, sports betting franchises, route gaming machines and online wagering are governed by separate statutes and administrative regulations rather than a unified gambling code.
The PRGC oversees enforcement across multiple sectors, including casinos, gaming halls, sports betting franchises, gaming machine distribution and horse racing. However, each discipline operates under its own legislative framework. Puerto Rico has not yet developed a standardised charter to govern the entire gambling sector.
MAJAR machines are slot style gaming terminals typically installed outside casinos in authorised venues such as bars, restaurants, shops and convenience stores. For years, thousands of these machines operated across the island in what was described as a semi regulated environment with inconsistent oversight.
The court case brought renewed attention to this patchwork of rules and the practical consequences for operators seeking to comply with new regulatory standards.
Financial and Market Implications
Gaming revenues generated through machine licensing and regulatory oversight contribute to Puerto Rico’s public finances. Part of this funding is tied to the Puerto Rico Police Retirement System.
By requiring the PRGC to process applications and reopen the licensing pathway, the ruling may influence how quickly operators can transition into the regulated system established under Regulation 9647. For businesses operating MAJAR machines in authorised venues, the decision clarifies that an administrative process must be available and accessible.
For users, including those who engage with gaming machines outside traditional casinos, the ruling addresses the legal framework under which these terminals operate. The requirement for machine specific licences, registration tags and digital interconnection remains part of the regulatory structure approved in 2025.
Our Assessment
The Appeals Court of San Juan has determined that the Gaming Commission of Puerto Rico must process licence applications for MAJAR gaming machines and cannot rely on inconsistent statutory provisions to deny access. The ruling restores a defined administrative pathway for operators under Regulation 9647 and reinforces the obligation to implement the licensing and interconnection framework introduced in 2025 and 2026. For Puerto Rico’s gaming sector, the decision clarifies how route gaming machines installed in small venues are to be regulated within the existing legal structure.
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