Posadas de Puerto Rico Associates v. Tourism Co. of Puerto Rico

Puerto Rico authorized casino gambling but barred casinos from advertising to island residents, delegating implementing regulations to the Tourism Company (defendant); after the Tourism Company fined Posadas de Puerto Rico (plaintiff) under a policy interpreting the ban to cover promotional items like matchbooks and brochures potentially reaching residents, Posadas sued claiming a First Amendment violation. The trial court adopted a narrower construction limiting the ban to advertising aimed at residents (not tourists) and found Posadas's rights had been violated by the prior broader enforcement; Posadas appealed the underlying constitutionality finding, the Puerto Rico Supreme Court dismissed for lack of a substantial constitutional question, and the U.S. Supreme Court granted review.