The Puerto Rico Tourism and Cooperative Commission has given its approval to a project that aims to create a new model for redistribution of revenue from casino slot machines. The aim is for various groups to earn an equal share of the benefits in order to boost their businesses during a time of extreme financial hardship.
This bill would amend section 5 of Law 221 of 1949, also known as the Games of Chance and Slot Machines Authorisation Law, which governs all casinos on the island, according to El Vocero.
The gaming law is divided into two categories: Group A and Group B. Group A concessionaires earn 34 percent of the first $315 million in annual net profits. Group B, on the other hand, which includes government funds, earns 66 percent
If annual net income exceeds $315 million and hits $495 million, Group A receives 60 percent and Group B receives 40 percent. If this rule is implemented, regardless of the amount reported as annual net profits, the operators and the government may earn the same percentage.
Details of the product presentation read: “Undoubtedly, this new model equals a 50 percent for Group A and the remaining 50 percent for Group B. It will give both sectors the opportunity to perceive benefits more effectively and uniformly, without being subject to a net income figure.”
In addition, joint resolution 17 was passed, which complements the bill by directing the Department of Economic Development and Commerce’s Tourism Office to allocate 60 percent of annual net profits to Group A for a span of 180 days and 40 percent to Group B in order to help them offset the economic impact of COVID-19.