Mexico Casino City’s North American Gaming Almanac 155 Mexico The legal gaming industry currently consists of bingo, gaming parlors, Class II machines, lotteries, horse and greyhound betting, and sports wagering. While Mexico’s Federal Law of Games and Raffles of 1947 technically prohibits casino gambling, amendments and regulatory loopholes have allowed the widespread operation of casinos, gaming parlors, and betting shops across the country. The 1947 law was amended in 2005 to allow sportsbooks, offtrack betting and numbers games. The Mexican Home Office, La Secretaria de Gobernación (SEGOB), is in charge of the licensing and regulation of all gaming. Initially, the drive to reform the gaming laws was to promote tourism. But now that de facto casinos permeate the Mexican landscape, the focus has turned to regulating gaming activity and stopping the proliferation of illegal gambling. In 2013, Mexico explicitly banned slot machines and outlawed the practice of gaming license holders renting out their permits to other operators. Since then, there have been several legislative efforts from the Executive Branch to amend the Gaming Law and its Regulations or to pass a new gaming bill that meets the needs of a globalized gaming industry and offers certainty and clarity to permit-holders, gaming operators and players. On November 16, 2023, a new presidential decree was published in the Official Gazette, amending the Federal Law of Games and Raffles and its regulations. The decree prohibits the operation of slot machines for new permit holders, eliminates the sub-licensor structure, and limits new permits to a maximum of 15 years. This reform has been challenged in court by industry groups, and in June 2024, a federal judge declared the slot machine ban unconstitutional, potentially altering enforcement of the new regulation. Gaming Profile by Type of Location Locations Casinos ............................................. 362 99.5% Horse Tracks ...................................... 1 0.3% Racinos............................................... 1 0.3% Total ................................................. 364 100.0% Electronic Gaming Machines Casinos ........................................... 3,451 Racinos............................................. 900 Casino and Card Room Gaming Casino gaming in Mexico is expressly forbidden in the first article of the Federal Law of Games and Draws of 1947. However, the same law mentions an opportunity for games with bets to be allowed at the discretion of the Secretaria de Gobernación (SEGOB). Initially, permission for such games was rarely granted. But the situation changed over time, and eventually, Class II machines and converted Class III machines began operating in hundreds of gaming properties throughout the country. The Mexican government has attempted to gain control of its casino industry numerous times in the last decade. Its latest effort began in early 2015, when the government began pushing for legislation that would authorize resorts to build casinos. The goal behind this legislative push is to make sure new casinos are built to attract tourists, not locals. In 2013, Mexico banned slot machines. It also stopped gaming license owners from renting out their permits to other operators. However, slot machines operating in casinos were legalized during the six-year term of President Felipe Calderón and endorsed in 2016 by a unanimous decision of the Supreme Court of Justice. Bills that would have banned gaming parlors near schools and churches, banned the operation of slot machines in stores and pharmacies, and created a new tax structure for the remaining operators failed to pass in 2009 and 2010. The 2023 decree also eliminated the “sub-licensor” structure, meaning only primary permit holders can operate gaming establishments, not third-party operators. The legal status of slot machines remains in flux due to ongoing court challenges. Existing permit holders may continue operating slot machines until their permits expire, but no new permits for slot operations are being issued. Lotteries Mexico allows government-run and privately operated lotteries. The government lotteries consist of the Lotería Nacional para la Asistencia Pública, established in 1770, and the Pronósticos para la Asistencia Pública. Revenue from these national lotteries is primarily used to fund public health and welfare programs. Lottery tickets can be purchased from brick-and-mortar retailers, at ATMs, by cell phone and on the internet. The private lottery in Mexico is operated by Apuestas Internacionales, a subsidiary of Televisa.
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