Stakeholders up in arms about latest Mexican gaming draft decree

Shirley Pulis Xerxen September 26, 2023

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Stakeholders up in arms about latest Mexican gaming draft decree

A Mexican gaming draft decree that would outlaw all gaming machines and casino-style games in Mexico is facing stiff opposition from Mexican operators, union groups, and local and international associations.

On September 7, SEGOB unexpectedly released a draft regulation which aims to reform and repeal various provisions of the 2004 regulatory decree. The draft regulation aims to eliminate slot machines and reduce the duration of casino permits. The reforms included in the draft will revoke the articles of the 2004 regulatory decree which establish permits for casinos to operate slot machines. The decree will also reduce the validity of casino permits from 25 years to 15 years.

Additionally, the proposed draft would expressly outlaw any games involving slot machines, dice, cards, or roulette wheels, effectively destroying Mexico’s 400+ de facto casinos once their operators’ licenses run out and the new laws are fully implemented.

Feedback from stakeholders

Over 140 individual comments on the draft legislation have been received after it was posted on CONAMER website (the National Commission on Regulatory Improvement), with the vast majority voicing vehement opposition to the draft that poses a serious threat to the industry’s survival. The proposed changes would not decrease the demand for casino gaming, various Mexican gambling operators have cautioned in their feedback. The changes would merely result in illegal, unregulated practices, beyond control or verification.

Representatives of union groups that represent employees in the services industry warned in their feedback that the draft puts in serious jeopardy the estimated 50,000 direct and 120,000 indirect jobs provided by Mexico’s licensed gambling halls.

Comments on the draft have come from Las Vegas, where several international gaming operators that cater to the Mexican market are situated. Professor Bo Bernhard of the University of Nevada, Las Vegas and gaming lawyer Frank Schreck advised the Mexican government to consider the good practices in the United States, Japan, and other nations in assessing the advantages of a well-regulated casino business and the risks and pitfalls of prohibition.

In Mexico, gaming is regulated by the Ministry of Interior (Secretaría de Gobernación or SEGOB), through its Gambling and Raffles Bureau (Dirección General de Juegos y Sorteos). The National Commission on Regulatory Improvement (CONAMER), within the Secretariat of Economy, is the agency responsible for streamlining federal and sub-national regulation.

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