Casinos Retaliate Against Slot Ban in MexicoTwo weeks have passed since the Mexican president declared a ban on slots in casinos and halls, and now the gambling industry is rallying together, preparing to mount legal defenses and brace for what many foresee as a prolonged legal confrontation.
Miguel Ángel Ochoa, head of the Association of Permit Holders, Operators, and Suppliers in Mexico's gaming sector, detailed their strategy this week. He plans a two-fold approach: safeguarding the industry's interests and advocating for crucial alterations to the Federal Law on Games and Sweepstakes.
On November 16, the federal government released a statement in the Official Gazette, indicating a halt on issuing new slot machine permits and the non-renewal of existing ones. Aieja argues this ruling will devastate the regulated gaming sector and severely impact the nation's economy.
Slots Are Big Business
Slot machines make up a staggering 85% of all industry operations, so these drastic restrictions could lead to a catastrophic revenue shortfall of up to MXN 12 billion (US$700.32 million) for the current administration.
The gaming community's discontent has been primarily directed at the National Commission for Regulatory Improvement (Conamer). Despite holding public consultations, they seemingly ignored the industry's input.
Consequently, Ochoa confirmed Aieja is taking the legal route to combat potential mid-term business closures. This forthcoming legislation threatens to impact most casinos, whose permits mostly expire between 2028 and 2033, with a total restriction on renewals by 2038.
Aieja insists that it's been almost 80 years since Mexico's gambling laws saw significant updates, advocating that modernizing these laws is a wiser solution than rash slot bans.
The Death Knell for Casino Employees
Casino stakeholders voiced their fears that the newly suggested rules will not only alter gaming possibilities but might also deter patrons from visiting these establishments. They also relayed feedback from industry workers worried about job security amid looming uncertainties.
The country's 429 casinos are crucial, supporting about 180,000 jobs both directly and indirectly. With the slot machine ban looming, roughly 100,000 positions might be at risk within the next six years. Additionally, slot machine manufacturers might retreat their investments from Mexico.
Ochoa mentioned continued talks with the Ministry of the Interior and lawmakers to tackle this issue. Aieja aims to initiate discussions on fresh regulations next February during the last session of the ongoing Congress.
The objective is to ensure an inclusive atmosphere that considers all perspectives, striving for a balanced solution that addresses vital regulations and ensures industry sustainability.
Still Some Hope Left?
A shift in leadership might offer hope for Mexico's gaming industry, as Lopez Obrador's approach seems firm. With Mexican presidents restricted to a single six-year term, Obrador's tenure concludes next year.
As Mexico anticipates a new president, former Mexico City mayor Claudia Sheinbaum, an Obrador ally, leads the race. While not an ardent gambling advocate, neither is she overtly opposed.
Recognizing the sector's economic contributions, Sheinbaum's stance could favor Aieja as they seek backing.
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Last Updated: December 14, 2023
