Casino labour unions issued a stark warning that the ban could lead to as many as 100,000 job losses in Mexico, encourage the black market and incur losses to the treasury of almost $5bn. Those opposed to the ban also argued that it would lead to a number of destinations in Mexico losing tourists.
the president was asked if he was really sticking to his gaming policy by a journalist who said that casinos had increased under his watch. Shortly afterwards he announced that he had ordered López Hernández to open an investigation into the granting of licences under his administration.
López Obrador has had to respond to some criticism over whether he has stuck to his gambling policy. During his administration states such as Baja California have looked to expand gaming without the authorisation of SEGOB and put in place their own set of rules especially when it comes to taxation. In February 2020 the government of the city of Tampico in the state of Tamaulipas said that it was looking at introducing casinos in order to bring back tourists and a new casino opened in Mexicali in the state of Baja California in 2023.
However, these are very isolated occurrences. In May last year the head of SEGOB defended the government’s record arguing that during the term of the current administration no operating permits had been granted by the federal government and in fact, 47 casinos had been closed as they did not have permits and had also accumulated operational
P74 WIRE / PULSE / INSIGHT / REPORTS
irregularities linked to tax evasion.
Indeed López Obrador has fulfilled his promise when it comes to casino licenses. Te number of licenses granted contrasts significantly with his predecessors. During the six-year term of Vicente Fox, 340 operating permits were granted for casinos. During the government of Felipe Calderón, 154 permits for casinos were authorized. During the administration of Enrique Peña Nieto, 123 licences were granted. López Obrador has granted none.
THE SLOT BAN
It has not been enough for AMLO to restrict the growth of the industry. In September last year SEBOG published a draft reform to Mexico’s gaming laws calling for a ban on slot machines.
To justify the measure, the government argued that slots are not permitted under the 1947 act which only authorizes dominoes, chess, checkers, bowling, billiards, dice, bowling and raffles – and that Congress has not made changes to the bill since 1947.
In October, casino labour unions issued a stark warning over the decree arguing that the ban could lead to as many as 100,000 job losses in Mexico, encourage the black market and incur losses to the treasury of almost $5bn. Tose opposed to the ban also argued that it would lead to a number of destinations in Mexico losing tourists as they would choose to travel to other countries.
Despite this López Obrador banned slots in casinos and other gambling facilities via a decree in November.
Te reform is not retroactive, so casinos will still be able to use them for the time remaining on their permits. Tese licenses can only have a maximum validity of 15 years. Once this time passes licenses won’t be eligible for renewal or extension. Tose licences which have been granted but have not been acted upon were cancelled. In addition no new casino licences will be allowed while licences for betting centres including those at racetracks, greyhound tracks and remote betting centres will only have permission to operate for a maximum of 15 years.
Tis means that the 444 casinos which currently operate in the country are only allowed to operate slot machines until their operating permits expire. Meanwhile, those 408 casinos which have licences
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