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Mexico – Casino closures to cost US$23m a year

By Phil - 29 November 2013

The recent spate of casino closures in Mexico is, according to members of the Mexican Gaming Association (AIEJA), taking a heavy toll on the industry with job cuts and losses of US$23m a year.

Industry representatives have warned that local governments have so far closed a total of 25 casinos nationwide with 12 closures in the states of Coahuila, Monterrey and Chiapas alone.

Speaking to local press, President of the AIEJA Miguel Angel Ochoa said that the casinos are initiating legal proceedings in order to try and reopen. The AIEJA also confirmed that 7,000 people have been left jobless due to the Mexican government’s increasingly tough stance on the industry. Mr Ochoa also claimed that a lack of local regulation on a state level in place means that legal avenues for casinos to reopen once they are closed are limited and take considerable time.

President of Mexican gaming organization ASPJAC (Asociación de Permisionarios y Proveedores de Juegos y Sorteos, A.C) Alfonso Pérez Lizuar has also criticised local laws when it comes to gaming saying that:  “As far as the state and municipal legislation in concerned we do not exist. We only exist in order to pay tax.”

Gaming in Mexico, especially on a local level, looks increasingly controversial with a special investigative committee now looking into how licences have been granted in the past. In addition the issue of local courts and the granting of licences and stays of closure is becoming a focal point leading to increasing speculation that the government could soon move to pass a wide sweeping new gaming act.

Earlier this week the Mexican Ministry of the Interior confirmed that there are a total of 43 casinos in Mexico which are operating illegally. The agency made the announcement while it delivering its report to the Special Commission of Gaming of the Chamber of Deputies. SEGOB also differs from the number provided by the Mexican Gaming Association saying that just seven casinos have been closed so far this year.