et al. Posadas de Puerto Rico v. Tourism Company of Puerto Rico

The present effort of several U.S. cities to legalize casino gambling to spur economic growth has a number of predecessors. Many Caribbean islands, faced with limited traditional economic prospects, turned to gambling as a means of promoting tourism. Ironically, those who support the legalization of gambling view it primarily as an economic development strategy, all parties in the debates over the legalization of gambling agree that gambling produces some negative social effects. When Puerto Rico decided to legalize certain forms of casino gambling in the years immediately following World War II, its government clearly recognized the negative aspects of legal gambling, and constructed its legislation accordingly. The Puerto Rico Games of Chance Act of 1948 legalized roulette and dice and card games within licensed gambling rooms, but specified that such gambling rooms were to be for the exclusive use of tourists. The act also forbade the advertising of Puerto Rican gambling establishments within Puerto Rico. Although the act was expanded to allow the playing of bingo in 1972 and the operation of slot machines in 1974, its ban on the use of Puerto Rican casinos by residents of Puerto Rico remained intact.