Mexico Plans to Examine State-issued Casino Permits
Mexican President Andrés Manuel López Obrador is taking action against the gambling industry. In a public announcement on Tuesday, Obrador stated that many casinos have obtained their licenses through bribery or extortion.
López Obrador intends to ask Interior Secretary Adán Augusto López Hernández to evaluate the existing licenses granted by Mexican states, not the federal government since Obrador's presidency began. The focus of this review will be on the timeline of when the license was obtained.
Hernández may also order the sudden cancellation of some casino licenses. Additionally, the government has decided not to issue any new licenses moving forward.
López Obrador isn't only targeting casinos. In his statement, he mentioned that the government will not grant new concessions for certain types of mining. This could potentially cause issues as the current laws allow states and municipalities to have control over land usage. This legal precedent may also be relevant when casinos attempt to challenge the government over their revoked licenses.
López Obrador's Reform
López Obrador assumed office in 2018, succeeding Vicente Fox. López Obrador has accused several corrupt practices that took place during Fox's term. Since 2019, López Obrador has hinted at a firm stance against casinos.
In 2020, former Interior Secretary Olga Sánchez Cordero warned that only the federal government can issue casino licenses according to Mexico's gambling laws. Despite this, several casinos opened after receiving approval from the state, not federal authorities.
Casinos Up for Review
In the past six months, Mexico has seen the opening of several new casinos in Cancun and Mexicali. The state of Tamaulipas has two new casinos whose licenses will now be under scrutiny. Ivy Casino also opened in Mexico City in January of this year.
When Ivy Casino opened, locals took to the streets to protest, citing irregularities in the construction and management of the establishment. They argued that it was situated less than 500 meters (around 1,640 feet) from a school, which violates federal gambling laws.
The protesters revealed that Ivy Casino had not received federal authorization. They criticized Mexico City's government for not intervening and stopping construction due to the lack of a license.
Casinos planning to challenge Obrador's decree intend to remain open during the legal conflict. Unless law enforcement steps in and shuts them down, these establishments will most likely continue to operate beyond Obrador's term, which ends in September of next year.
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