Since 1997, fourteen attempts to reform the Federal Law of Games and Raffles have been made, but none have succeeded. Now, the Association of Permit Holders and Suppliers of the Entertainment and Gambling Industry (AIEJA) is backing a new reform proposed by the Ministry of the Interior (Segob) to update the outdated regulation.
Need for Modernization
Miguel Ángel Ochoa, president of AIEJA, emphasized the urgency of modernizing the law, which has been in place for over seven decades. He pointed out that the current law is practically useless in today’s context, as it fails to address technological advancements that have transformed the industry. Operating under an obsolete law limits the sector’s development and the economy.
Government-Led Effort
This is the first time the Federal Government is leading the effort to update the law, opening up possibilities for creating a regulation that promotes transparency, combats illegal operations, and attracts investments. Ochoa hopes the industry’s perspective will be considered, as there are significant opportunities for Mexico with clear and modern regulation.
Challenges and Opportunities
One of the biggest challenges for the industry is the unfair competition from illegal operators, especially online. Currently, 60% of the online betting market operates outside the law, while the 81 authorized operators represent only 40% of the market. The reform aims to include specific provisions to regulate this segment and block illicit activities.
Ochoa also highlighted the potential to boost tourism through projects that integrate hotels and casinos in key destinations like Cancun, Los Cabos, Puerto Peñasco, Acapulco, and Huatulco. Most casinos in Mexico cater primarily to local customers, limiting their economic impact. With adequate regulation, Mexico could attract new investments and expand its reach to the international tourist market.
Economic Impact
The gaming industry in Mexico comprises 38 licensees authorized by the Ministry of the Interior, operating 423 casinos in 30 states. This sector generates nearly 60,000 direct jobs and a total of 180,000 direct and indirect jobs, benefiting over 200,000 families and contributing 13 billion pesos in federal and municipal taxes.
Collaboration with Authorities
Ochoa reiterated AIEJA’s willingness to collaborate with authorities to ensure the reform addresses the sector’s needs. The goal is to establish a law that allows for orderly growth, promotes transparency, and maximizes benefits for public finances, consumers, and the industry.
Source: La Prensa
