Nationwide ban on slot machines enforced in Mexico's casinos and gambling establishments
On November 17, 2023, Mexico's administration, led by President Andrés Manuel López Obrador, issued a prohibition on slot machines in all casinos and betting establishments. This ban is part of President López Obrador's mission to alter the country's gambling regime and ensure greater regulation and control, as mandated under the Federal Law on Gaming and Lotteries.
The new legislation effectively annuls the previously existing regulations that sanctioned the usage of slot machines, thereby prohibiting all forms of gambling that were previously approved by law. However, it's important to note that the prohibition is not applied retroactively. Casinos that currently operate slots sanctioned during former President Felipe Calderón's tenure can continue to use them until their concession ends.
Operators with an active license can continue to operate, but they will not be eligible for permit extensions or renewals. These privileges will only last for a maximum of 15 years, regardless of any previous agreements with the government. Licenses issued to operators who have yet to open their businesses have become invalid.
The prohibition is not limited to slot machines alone; other criteria for exclusion involve the total count of operators in the gaming ecosystem. 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.
The ban on slot machines is seen as a jab by Obrador at former president Felipe Calderón, who he believes may have corrupted the gambling ecosystem. There's a concern that the ban on regulated slot machines across the country may lead to an increase in activity at illegal casinos.
On Thursday, the Official Journal of the Federation published a notice that changes the language of the Regulations of the Federal Law on Games and Sweepstakes, explicitly categorizing a slot machine as any mechanism employed by players to place wagers.
The move towards a ban on slot machines is not the only measure implemented by the Mexican government. Authorities have actively targeted illegal slot machines by confiscation and destruction to prevent gambling addiction and crime. For instance, 98 slot machines in Tijuana and nine slot machines in Hermosillo were seized during operations against suspected illegal gambling.
Mexico is working on updating gambling laws to modernize the industry, improve regulatory clarity, and promote responsible gaming. These reforms are expected to support responsible gaming practices and could lead to more foreign investment and adoption of new technologies such as mobile and hybrid gaming platforms combining physical and digital experiences. The slot machine and broader gaming market is moving towards a hybrid model, combining physical casinos and digital platforms under evolving regulations.
In summary, the Mexican government has taken significant regulatory and enforcement actions targeting slot machines in casinos and betting establishments to address concerns about illegal gambling and gambling addiction. The new legislation prohibits the issuance of new licenses for casinos, but casinos currently operating slot machines can continue to do so until their concession ends. The government is discussing further reforms aimed at modernizing regulation to ensure player safety, fairness, and operational clarity.
- The legislation issued by Mexico's administration on November 17, 2023, specifically targets slot machines in all casinos and betting establishments as part of President Andréés Manuel López Obrador's mission to regulate the country's gambling industry.
- The new legislation effectively annuls the previously existing regulations that authorized the usage of slot machines, enforcing a prohibition on all gaming activities previously approved by law.
- Casinos that currently operate slots sanctioned during the tenure of former President Felipe Calderón can continue to do so until their concession ends.
- Operators with an active license can continue to operate, but they will not be eligible for permit extensions or renewals, and their licenses will last for a maximum of 15 years.
- The prohibition is not limited to slot machines; the licenses granted for establishing and running betting centers will have a maximum existence of one year to 15 years as well.
- The ban on slot machines has been seen as a critique by Obrador towards former president Felipe Calderón, and there are concerns that the ban on regulated slot machines may lead to an increase in activity at illegal casinos.
- Mexico is not only focusing on banning slot machines but is also modernizing its gambling laws, supporting responsible gaming practices, promoting foreign investment, and adopting new technologies like mobile and hybrid gaming platforms in the casino-and-gambling industry.
