Mexico at the Verge of Prohibiting Slots, Possibly Sounding the Final Alarm for Gaming Companies
In a recent development, Mexican journalist Mario Maldonado has called on President Andrés Manuel López Obrador to show leniency towards casino operators and maintain their current rights until the expiration of their permits. This comes as the Mexican Secretariat of the Interior has drafted a decree seeking to reform the Federal Gaming and Sweepstakes Law, which is expected to be enacted shortly.
If passed, the decree will prohibit "drawings of numbers or symbols through machines," affecting not only slot-using businesses but also lottery firms. This could potentially cost Mexico-based slot operators a combined MXN15bn ($874m) per year in slot revenue.
The potential financial impact on slot operators has been a concern raised by Mario Maldonado, who has warned about the potential repercussions of the decree. If enacted, the decree will significantly change the landscape of Mexico's entire gambling industry.
While there isn't specific information on the decree for sweepstakes reform, Mexico has been actively involved in improving its regulatory frameworks. The Mexican government launched Plan Mexico 2025, which includes initiatives to enhance digital infrastructure and regulatory processes, although it primarily focuses on economic growth and digital inclusion rather than gaming laws directly.
The potential impacts on slot machine operators and casinos could be significant. Any reform could lead to stricter regulations or licensing requirements, potentially affecting how they operate and market their services. Enhanced regulations might increase compliance costs for businesses, which could impact smaller operators more significantly. However, clearer regulations could provide more stability and potentially expand the market by attracting more legitimate operators.
Among the main casino operators that could suffer as a result of the new rules are Caliente, Play City, and Codere. The decree also affects these businesses by reducing their license terms from 25 years to 15 years.
The Mexican government's decision to potentially ban slot machines and lottery drawings done through machines will undoubtedly have far-reaching consequences for the gambling industry in Mexico. As more details emerge, it will be interesting to see how the industry adapts to these potential changes.
The proposed decree, if enacted, will not only affect slot operators but also casino-games businesses, potentially costing Mexico-based slot operators a combined MXN15bn ($874m) per year in revenue. This decree, which prohibits "drawings of numbers or symbols through machines," could significantly change the landscape of Mexico's casino-and-gambling industry.
