Posted on: November 17, 2023, 07:30h.
Last updated on: November 17, 2023, 06:47h.
Mexico’s administration, led by President Andrés Manuel López Obrador, is bringing sweeping reforms to the gaming industry. The administration recently prohibited slot machines in all casinos and betting establishments.
On Thursday, the Official Journal of the Federation, the government’s official notification outlet, published a notice that changes the language of the Regulations of the Federal Law on Games and Sweepstakes. In line with Obrador’s wishes, it explicitly categorizes a slot machine as any mechanism players employ to place wagers in anticipation of winning a prize.
The measure seeks to ensure greater regulation and control, as mandated under the Federal Law on Gaming and Lotteries. It’s also a former president, Felipe Calderón, who he believes may have corrupted the gambling ecosystem.
But the forthcoming reform won’t be applied retroactively. Casinos operating slots sanctioned during Calderón’s tenure will retain the ability to use them until their concession ends. These privileges will last for 15 years, regardless of previous agreements with the government.
Once this timeline elapses, these rights won’t be eligible for renewal or extension.
New Measures
Under the new language, anything resembling a slot is prohibited. This legislation annuls the existing regulations that sanctioned the usage of these machines, thereby prohibiting all forms of gambling previously approved by law.
Another criterion for exclusion involves the total count of operators in the gaming ecosystem. Those with an active license can continue to operate but won’t be eligible for permit extensions or renewals.
Several operators have received licenses but have yet to open their businesses. These licenses are now invalid.
The enactment of this law further stipulates that the issuance of new licenses for casinos shall be prohibited. The licenses granted for establishing and running betting centers at racecourses, frontons, remote betting centers, and any other previously designated areas will have a maximum existence ranging from one year to a maximum of 15 years.
Previous Slot Legalization
In 2012, Calderón enacted legislation authorizing the Ministry of Interior (Segob, for its Spanish acronym) to issue permits for slots. Subsequently, in 2016, Mexico’s Supreme Court consented to installing slot machines within casinos.
The ruling declared that these machines are legal when operated as raffle games rather than games governed solely by chance or skill.
That has changed significantly since Obrador took office.