The gambling industry in Mexico is gathering legal resources to fight a ban on slot machines that went into effect several weeks ago, Yogonet reported November 28.
The regulations were signed by President Andrés Manuel López Obrador.
Regulations of the Federal Law of Gaming and Sweepstakes amendments call for no new slot machine permits or renewal of existing machines in casinos. No permits are coming up for renewal for five years.
The fight is being led by the Association of Permit Holders, Operators, and Suppliers of the Entertainment and Gaming Industry in Mexico (Aieja), whose president, Miguel Angel Ochoa, told reporters, “At this moment, the two actions are the issue of the Amparo, on the one hand; and the issue of the promotion of a Federal Law on Gaming and Sweepstakes.”
Ochoa said the machines account for 85 percent of his members’ business. Industry members claim that although the National Commission for Regulatory Improvement (Conamer) held a consultation, it ignored all input.
They also say the measures will drive customers from their casinos and will drive employers from their jobs into the black market. They added that slots manufacturers would stop investing in the country.
This leaves Aieja no choice but a court challenge, said Ochoa. He noted that the measure will not have an immediate effect but will begin to as permits begin to expire over the next five years.
Ochoa said that the regulators were working based on the Federal Gaming and Sweepstakes Law, which was adopted in 1947. “Back then there were no gaming machines, no internet, no cell phones. So, the regulation, and these modifications are working on a really obsolete law. The intention is to work on a new bill,” said Ochoa.
The industry has reached out to the Ministry of the Interior, and to lawmakers, to see if the issue can be raised during the next session of Congress.
Ochoa said a new Federal Gaming Law ought to solve the problem.
Some gaming legal experts say the presidential decree violates the constitution. Others say it was poorly written and full of errors and lacked understanding about the industry.
There can be little doubt that those who drafted the decree knew they would be hurting the gambling industry. It targets “drawing of numbers or symbols through machines.”
The Ministry of the Interior argues that the country will save money treating gambling addiction. Opponents say Mexican federal law allows slot machines. They also say the Ministry may have erred by completely ignoring input during the public consultation.
Seven years ago Obrador’s predecessor Felipe Calderon legalized the machines and the Supreme Court classified them as “sweepstakes.”
As it stands, the future of Mexico’s gaming industry hangs in the balance.
