Mexico: Gaming industry prepares legal recourse to face slot machine ban
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Almost two weeks since the decree that modifies the Regulations of the Federal Law of Gaming and Sweepstakes went into effect, establishing that no new permits will be granted nor will those in force be renewed for the operation of slot machines in casinos and gaming halls, representatives of the Mexican gambling industry are preparing legal resources to defend their activity.
According to the President of the Association of Permit Holders, Operators, and Suppliers of the Entertainment and Gaming Industry in Mexico (Aieja), Miguel Angel Ochoa,they will confront the measure with two different strategies.
"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," he said.
Ochoa explained that slot machinesrepresent 85% of the business. Therefore, the idea will be to fight the new regulation by means of an amparo appeal, as reported by the news portal El CEO.
Among the criticisms made by the industry to the new regulation, is that although it was opened to public consultation during the previous months, the National Commission for Regulatory Improvement (Conamer) ignored the comments.
In the process of reviewing the proposed regulation, industry representatives reproached that these measures would limit gaming and even end up driving customers away from the gaming halls. In turn, they cited comments from casino workers themselves, who insinuated that, seeing their jobs at risk, their alternative would be to join the informal gaming industry. Besides, they warned that the slot machine manufacturers would withdraw their investments from the country as they did not see any future in the business.
Therefore, the head of the Aieja indicated that they will bet on judicialization to avoid in the medium term the closing of businesses.
He also pointed out that, although the new measure will not have immediate effects, in the next five years most of the casinos, whose permits expire between 2028 and 2033,will be affected. While the totality of the permits will not be renewed after 2038.
The decree also contemplates that the Ministry of the Interior, to which the General Directorate of Gaming and Sweepstakes is attached, will issue new guidelines regarding the manner of determining the payment of "aprovechamientos", a fee paid by permit holders to the Federation for the use of their permit.
Modification of the law
On the other hand, the players of the gaming industry will bet on reaching an agreement to modify the Federal Gaming and Sweepstakes Law that regulates the sector, which dates back to 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.
Furthermore, he stated that the industry has been in contact with the Ministry of the Interior, as well as with the legislators so that a new regulation can be discussed as of February 2024, during the last session of the current Congress.
"I believe that if we achieve a new Federal Gaming Law that provides certainty and peace of mind, then surely we will not have a problem. If not, we have the amparos that will allow us to negotiate the renewal of the permits," Ochoa added.
