Legislation

Mexico – Mexico gaming law fast tracked

By Phil - 1 December 2014

After a 40 minute session Mexico’s new Federal Betting and Lottery Act has been approved in the committee stage.

It will be the Head of the Interior Ministry who will appoint the head of a newly created gaming board called the National Institute of Gaming and Raffles (Instituto Nacional de Juegos y Sorteos). Meanwhile, the Interior Ministry will also retain control over the opening and closing of all casinos, and other gaming establishments including sports betting centres and race tracks. It will also be responsible for onsite inspections of all gaming establishments.

On Wednesday the Interior Ministry announced that it had reached an agreement to publicise the initiative and that it would be presented before the House on behalf of the Commission. It only took two hours in all for the committee members chaired by Alejandro Moreno Cárdenas (Institutional Revolutionary Party) to agree on the terms of the new bill.

The new act will replace Mexico’s gaming act laws which date back to 1947 and will involve a number of player protection measures such as protecting vulnerable groups from gambling addiction and restrictions on advertising. The new law also puts the minimum gambling age at 21 for casinos.
It will also impose heavy fines on those found to breaking the law including sentences of two to five years in prison for those found to be operating illegal gambling establishments while heavy fines will also be meted out to those players found to be knowingly gambling in an illegal operation. In a surprise reversal the new act will not permit mini casinos which would have allowed operator’s licences to house up to 30 machines per site.

Crucially the new law also puts an end to the so called “umbrella” licences whereby operators have been able to operate a number of slot parlours and sports betting shops under a single licence. Instead, each casino or gaming establishment will be issued a single licence per gaming establishment. It is believed that those operators who already have a licence to operate will have to apply for new licences under the terms of the new act.

The new bill marks the end of the work of the special commission on gaming in the Chamber of Deputies. Momentum has been gathering steadily for a new gaming act ever since the committee charged with investigating the gaming industry first went into session in 2013. The law could be presented to the full House of Representatives as early as this week.