Insight
LATIN AMERICA: ILLEGAL GAMING
Mexico Size of the Illegal Gambling Market
According to the Mexican Gaming Association (AIEJA), the Interior Ministry has been able to reduce the number of illegal establishments to zero. In addition, over 80 gaming rooms have had their licences revoked by the Interior Ministry over the last six years.
Central & North America
Costa Rica Size of the Illegal Gambling Market
Amusement arcades and gambling halls with illegal machines continue to proliferate throughout the country. In 2016 in capital San José alone, the government closed down 600 illegal gaming establishments. Although there are no official statistics when it comes to the exact size of the illegal market, according to local press reports, the illegal sector is growing and while police have been able to shut down illegal establishments many simply open up for business again sometimes just days later. Illegal slot machines are also increasingly present in local shops and bars.
Many illegal slot parlours have up to 20 or 30 slot machines on site, as well as AWP and arcade games and operate openly on the streets. In addition, there are no guidelines in place to help law enforcement officials as the vast majority of slot parlours operate under the guise of amusement arcades. However while skill games may be present in these establishments the large majority of the machines on site are slots which are illegal outside of casinos
Current Measures in Place
Municipal governments are losing the battle against illegal gambling halls due to a lack of control on a local level. Of the 81 municipalities in the country, only 16 are equipped with a municipal police force and in most cases, those carrying out inspections have very little experience when it comes to combating the increasing number of illegal gambling slot machines.
Casinos and gaming have been regulated as far back as 1922 and Costa Rican gaming law saw a major overhaul in 1997. By 1999, there were 21 casinos whilst in 2006 this had increased to 46 around the same number as there are today. However, successive governments have sought to restrict the industry with increased taxation and fees as well as restricted opening times.
As far back as January 2014 Jorge Hidalgo, President of the Association of Costa Rican Casinos, warned that the casino industry had been struggling for 16 years due to a lack of a regulatory framework when it comes to casinos. Operators have consistently criticised the government due a lack of regulation when it comes to illegal gambling and high tax rates.
Outlook
Costa Rica Market Te central government has done very little to crackdown on illegal gaming and there is no coordinated effort to tackle the issue. Instead, municipal governments have been left to regulate the sector and there is a wide gap between municipalities and the resources available to them as well as “know how” when it comes to identifying slot parlours masquerading as amusement arcades and how to tackle the issue. However, the government of San José is leading the way when it comes to creating a legal framework, which other jurisdictions could follow. However, there is still a long way to go before there is any significant change when it comes to eroding the illegal landscape further.
However in addition to the licensed slot machines in Mexico there are, according to estimates by the General Directorate of Gaming (DGJS), between an estimated 70 thousand and 75 thousand slot machines operating illegally throughout Mexico located in grocer’s shops and other small businesses such as chemists and convenience stores. Interior Ministry sources put this figure closer to 140 thousand.
Current Measures in Place
Government efforts to reduce illegal gambling have been largely successful since the Casino Royale tragedy in 2011 when a group of armed men attacked and then set fire to a licensed casino in the city of Monterrey leaving 52 people dead. A wide number of internal controls and protection measures have been put in place since the attack and the central government working in coordination with local and state governments has carried out a wide number of operations in a nationwide crackdown on illegal slot parlours.
Outlook
Mexico Market While raids on illegal gaming establishments continue on a local and state level in states such as Yucatán not much is likely to change when it comes to illegal gambling in the near future. It is hoped that Mexico could still pass a new gaming law, which could create a more closely regulated market with a clearer legal framework for operators and herald in a much wider crackdown on illegal gambling. However, the act is currently stalled in the Senate and the new bill will probably not be passed during the remainder of the six-year Presidential term. General elections are scheduled to be held in Mexico in July 2018.
NEWSWIRE / INTERACTIVE / MARKET DATA P49
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