What Next For Mexico’s Gambling Industry?

Mexico is one of the world’s most popular holiday destinations, and last year almost 40 million tourists visited the country in order to enjoy its beaches, mountains, deserts, jungles and numerous ruins scattered throughout the country.

While Mexico boasts high-end retail shops, gourmet restaurants and entertainment venues that cater to modern life, it is still missing one key ingredient that’s usually featured at all great tourist destinations, namely a fully regulated gambling industry.

History of Mexican Gambling

After the Mexican Revolution (1910–1920) was fought to ensure a fairer way of life for the population, the new President closed all casinos in the country, while the Catholic church put pressure on the government to prohibit all forms of gambling in Mexico. By 1947, President Lazaro Cardenas subsequently introduced an act declaring gambling illegal, and despite many attempts to repeal the law the situation has remained unaltered in Mexico for the past 70 years.

Despite being illegal, however, authorities do not properly enforce the laws, and these days a range of gambling activities are tolerated in the country, including wagering on horse racing, dog racing, lottery, and scratch cards.

Land-Based Casinos

Properly regulated casinos do not form part of this disparate landscape, though. Having said that, there are more than 400 legal gambling centers and game rooms based in Mexico offering horse racing, dog racing, Jai Alai and a limited amount of gambling games, although card games and slot machines have been banned since 2013. Furthermore, in recent years there has been an increase in the number of large casinos being built in Mexico near the US border, such as Lucky Point Casino and the Playboy Club, with these establishments catering mostly to American holiday-makers and not locals.

Sports Betting

Sports betting is legal in Mexico, with leading operator Caliente able to take wagers on a number of national and international sporting events at its 50+ land-based betting shops, or via the internet or phone.

Federal Gaming Laws

In 2004, the government attempted to introduce regulation to clarify the muddy gambling landscape in Mexico, with further amendments proposed a decade later, particularly in 2014 when efforts were made to address the country’s online gambling segment. The following year, however, discussions on a bill to officially accept that live and online gambling exists in Mexico were put on hold, although optimists are hoping for some movement on the matter this year.

Advantages of Regulated Gaming Industry

There are numerous ways in which Mexico and its society as a whole stands to benefit from a well regulated gambling industry. On the one hand, the government will be able to collect taxes, regularly check the finances and practices of licensed betting companies, and enforce strict anti-money laundering measures, and on the other underage and problem gamblers will be prevented from playing, while those people legally allowed to gamble can be assured of receiving their winnings.

Online Gambling

Mexico has one of the fastest-growing online gambling markets in the whole of Latin America that is estimated to be worth around $300 million a year. While numerous foreign websites offer their products in the country, their sites cater specifically for wealthy foreigners and not Mexican gamblers, with locals banned from using these online gambling sites. The government has yet to block access to these sites, though, meaning that many Mexicans are still able to enjoy playing games at these foreign based online casinos.

Future of Gambling in Mexico

As can be seen, the lines between legal and illegal gambling in Mexico remains blurred. Consequently, the country will need to introduce legislation specifying its laws clearly if it wishes to attract investment from large, well-established gambling operators. Once clarified, the vast country of 127 million people will then have no difficulty in setting up a lucrative, licensed gambling industry, both live and online, with the growth of smartphone technology also providing Mexicans with a cheap means of accessing the internet even from more remote rural locations.