Senate committee questions nominee Orlando Rivera Carrión on licensing, enforcement and revenue from electronic gaming

Orlando Rivera Carrión, nominated by Governor Pedro Pierluisi Urrutia to lead the Comisión de Juegos del Gobierno de Puerto Rico, told the Senate Committee on Nominations on June 8 that his office is moving to legalize and regulate thousands of electronic ‘‘route’’ gaming machines, strengthen enforcement and begin revenue collections this summer.

Rivera Carrión summarized his qualifications and a work plan that includes creating a law-and-order enforcement division with sworn staff, implementing an interconnection monitoring system and rolling out a Casino Payments System (CPS) to streamline collections. He said the statute authorizes an initial 25,000 route machines and up to 45,000 in the long term, and projected first-year license fees of roughly $40 million plus about $20 million from play revenues.

"La ley... autorizó la operación de veinticinco mil máquinas, inicialmente hasta un máximo de cuarenta y cinco mil," Rivera Carrión said, adding the commission has already issued 100 operator licenses and plans to use those operators’ filings to identify where machines are installed and which are legal. He described a licensing standard that will require operators to disclose the businesses where machines are placed, corporate owners and identification documents so regulators can certify compliance.

Why it matters: Senators pressed Rivera Carrión over long-standing enforcement gaps that have allowed route machines to operate without proper interconnection, reporting or payment to government coffers. Committee members said the machines represent a potential source of substantial revenue for police retirement funds and municipalities if the law is enforced.

Sen. Gregorio Matías asked how much the machines would generate for the police retirement fund and municipalities. Rivera Carrión cited legislative intent of about $37 per machine per day and estimated, under full operation, roughly $50 million a year for police retirement and $45 million for municipalities. "Si ejecutamos la ley... podemos tener todo beneficio de esta ley," he said.

Committee members also pressed operational and integrity questions. Sen. María Lee González Huertas asked whether e-sports and fantasy-betting servers must be hosted in Puerto Rico; Rivera Carrión replied that servers "definitivamente" must be on the island to create jobs, allow banking connections and support call centers. On banks’ reluctance to open accounts for gaming operators, he said regulators have coordinated with OCIF, Banco Popular and FirstBank and with federal partners to address anti–money-laundering concerns.

On the issue of so-called "ghost" corporations, Rivera Carrión said the commission audited licenses after reports surfaced and found one license lacking a resident agent; he said Department of State is responsible for resident-agent registration but that the commission can refuse or revoke licenses where irregularities arise. "Hasta el día de hoy no hemos encontrado solamente una de la que no tiene agentes residentes," he said.

Transparency and immediate next steps: The committee directed Rivera Carrión to provide, within five business days, a list of natural and juridical persons issued licenses for gaming machines, including name, date and license type; Rivera Carrión agreed to deliver that list. The nominee also described a phased plan: issue licenses, begin collecting the statutory excise and then connect machines to the interconnection system for ongoing monitoring; he said initial collections could start in July.

On prevention, Rivera Carrión said the commission will coordinate with existing prevention agencies and allocate funds for public-awareness campaigns. He estimated a prevention package of about $1.2 million to support programs aimed at reducing gambling-related harms.

The committee closed the nomination hearing after senators completed questioning. Rivera Carrión thanked the committee and said he looks forward to implementing the commission’s regulatory framework and enforcement plan.