The Court of Appeals of Puerto Rico recently upheld fines against Pablo Javier Rivera, LLC (PJR LLC) for operating gaming machines without the necessary licenses. This ruling affects businesses in Puerto Rico that operate similar gaming machines and clarifies the regulatory authority of the Department of Treasury and the Gaming Commission.
The case, titled Pablo Javier Rivera, LLC v. Negociado De Impuesto Al Consumo, was filed on May 15, 2026, under docket number TA2026RA00174. The court's decision emphasizes the importance of compliance with local laws governing gaming operations and the responsibilities of business owners.
Background
PJR LLC is a business registered with the Department of Treasury in Puerto Rico. It operates a gaming establishment with fifteen machines at Local 126 in the Gran Caribe Mall, Vega Alta. In October 2024, the Department of Treasury's Consumer Tax Bureau issued PJR LLC three fines totaling $1,500 for operating without a proper license and failing to display its merchant registration publicly.
In response, PJR LLC filed a complaint with the Administrative Appeals Office of the Department of Treasury to contest the fines. The business argued that the machines it operated were classified as gambling machines and should be regulated solely by the Gaming Commission, not the Department of Treasury. The Administrative Appeals Office reviewed the case and confirmed the fines, leading PJR LLC to appeal the decision in court.
The Ruling
The Court of Appeals of Puerto Rico, presided over by Judge Pérez Ocasio, along with Judges Sánchez Ramos and Romero GarcÃa, reviewed the case and upheld the Administrative Appeals Office's decision. The court stated, "the Administrative Appeals Office acted correctly in confirming the fines imposed by the Consumer Tax Bureau."
The court highlighted that PJR LLC did not provide evidence to dispute the findings that it operated the machines without the required licenses and failed to display its merchant registration. The court emphasized that both the Department of Treasury and the Gaming Commission have distinct regulatory roles, and their jurisdictions do not overlap in this context.
Impact
This ruling has significant implications for businesses operating gaming machines in Puerto Rico. It reinforces the necessity for compliance with both the licensing requirements set by the Department of Treasury and the regulations enforced by the Gaming Commission. The decision clarifies that businesses cannot evade their responsibilities under one regulatory body by claiming jurisdiction lies with another.
Furthermore, the ruling sets a precedent for future cases involving gaming operations, emphasizing that businesses must adhere to all applicable laws and regulations. It serves as a reminder to operators of gaming machines that they must ensure proper licensing and compliance to avoid fines and legal issues.
What's Next
PJR LLC may seek to appeal the ruling to a higher court, but details regarding any potential appeal were not available in the court filing. The outcome of this case could influence similar disputes in the future, as businesses navigate the complexities of gaming regulations in Puerto Rico.