Operator News
Mexico – Federal Court denies Codere licence to expand in Mexico
By Phil - 29 April 2019
A federal court has denied a legal move put forward by Codere to allow for an expansion of its gaming operations in Mexico.
The court denied the amparo – a remedy for the protection of their constitutional rights – put forward by Codere to open another 45 new casinos, in addition to the 95 that the company already operates in Mexico. The Eighteenth Collegiate Court on Administrative Matters denied the appeal on April 15 filed by Codere against the Interior Ministry (SEGOB).
The case originates as far back as April 2007, when Codere submitted the request. As of October 2012, the Regulation of the Federal Law on Games and Raffles establishes that permits can only be granted for a single establishment, and “for no reason” may operate several casinos under one authorisation.
Although the company could still take the case to the Supreme Court of Justice, the chances of success would be minimal according to local press, as the decision would revolve around the constitutionality of an article of law concerning regulation rather than the Government’s decision to deny the permit.
Codere obtained several favourable rulings in 11 years of litigation, and argued that SEGOB had to issue the new permit as requested, but the court ruled that the previous rulings were only for the authority to hear the company’s arguments, process their petition and resolve it according to law.
The refusal that the court reviewed on this occasion was set out by the General Directorate of Games and Draws in June 2016 (which in turn comes under the Interior Ministry).
The company has been making significant inroads into the Mexican market. In December Codere renewed the operating licenses of its gaming halls in Mexico, owned by its affiliate Administradora Mexicana de Hipódromo (AMH) and Operadora Cantabria for 15 years, until 2033, as well as the use of the land for the Hipódromo de las Américas racetrack for another 25 years, until 2048.
Despite the court’s ruling Codere will continue to be the market leader in Mexico and Mexico is a key region for the company, where Codere operates more than 19,600 gaming terminals, 95 establishments and 89 betting points, in addition to the activity of the racecourse, which represents 24 percent of the Group’s total turnover. In addition to Mexico City and its metropolitan area, the firm is present in other locations throughout Mexico.
In April The Board of Directors, approved a series of organisational changes aimed at simplifying and globalising the structure of the company, in order to improve its operational capacity, its results and increase the efficiency of its management processes.
According to a company press release: “The new organisation represents a new step towards the globalization of the group, by evolving the current regional scheme towards a simpler structure that gives prominence to the business areas and strengthens operational areas and institutional teams.”
Codere is present in seven countries in Europe – Spain and Italy – and Latin America – Argentina, Mexico, Panama, Colombia and Uruguay, operates more than 57,000 machines and has about 29,537 bingo positions and more than 7,700 sports betting terminals in Latin America, Spain and Italy through points of sale that include 148 gaming rooms, 1,119 recreation halls, nearly 10,000 bars, 602 betting rooms and four racetracks.
