The government of the Mexican state of Tamaulipas recently reversed legislation from 2017 prohibiting casinos due to concern they were linked to organized crime. As a result, up to 30 new casinos are expected to open in Tamaulipas next year, primarily located in cities near the Mexico-U.S. border.
Economic Development Secretary Carlos García González said the next step is for the state government to publish a decree officially repealing the casino ban. Then it can apply for the necessary licenses from federal authorities. “A year and a half ago, there was a reform by the state to prevent not only casinos but also strip clubs. The view is that the security situation is now more stable,” he stated.
Garcia González said the casinos will provide a source of significant tax revenue for the state. Currently those funds are being lost to other locations, he said. “I see people leaving Reynosa and Matamoros in buses to go to casinos in Nuevo León. There is an economic spillover from Tamaulipas residents in other states,” he said. He also noted the return of casinos will attract foreign visitors, who also will spend money at other local businesses. “I believe that this will help the border area. There could be a little bit more tourism. There are a lot of people in the Rio Grande Valley and in Texas generally who would be open to crossing the border to have a good time,” Garcia González said.
Abraham Rodríguez Padrón, head of a federation of chambers of commerce in Tamaulipas, said the business sector supports reopening the casinos, but more specifics are required in regard to how the state government will use the tax revenue to benefit local residents. In addition, he said the government is moving too quickly to reopen the casinos without considering the business chambers’ views on security and operations.
