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Column 102102 Thompson

October 21, 2002

Mexico’s vote on gambling casinos expected

By Barnard R. Thompson

Lead members on the Government and Public Safety Commission, one of the committees of Mexico’s federal Chamber of Deputies, announced on October 17 that the committee report on the final draft legislation for a new “Federal Gambling and Raffles Law” has been completed.  With markup completed, the next step with respect to what is said to be a largely favorable and supportive opinion is for the committee to meet officially and send the initiative to the congress as a whole.  That should be done within weeks, with the vote on the reformed gaming law — that includes the allowance for authorized casinos, or “betting centers,” to again operate in Mexico following a 68-year ban — expected before the yearend congressional recess.¹

While the legal reforms seek to regulate all gaming in Mexico, and to thus do away with the many clandestine betting operations (including illegal casinos) that can be found nationwide, the real interest is in the proposed phased opening of authorized casinos at select locations.  Foreign interests especially are chomping at the bit to get into Mexico, and many (but not all) Mexicans see the foreign investment, and subsequent jobs and tourism income, as genuinely important to the future of the nation.

The current efforts toward legal reform, that could lead to an allowance for ten to maybe 12 Monte Carlo or Montreal-type casinos in the first phase, might actually be viewed as a third wave attempt.  In the early 1990s the government of Carlos Salinas de Gortari (1988-1994) initiated a movement to reform the law and open casinos.  That effort carried over to the administration of Ernesto Zedillo Ponce de León (1994-2000), with proposals that began to involve the congress more directly.  Since Vicente Fox Quesada took office there has been renewed work to forge ahead, plus much of the Zedillo-era National Action Party resistance has now gone away.

The fact is the gaming reform package came close to passing into law in 1997, until a political high-hurdle was missed.  A look back needs to be taken, for sometimes the future can be better anticipated by knowing a little history.

President Salinas named Pedro Joaquín Coldwell to be Secretary of Tourism in 1990, and as a special responsibility Joaquín was to coordinate work towards the determination to again allow casino gambling in Mexico.  The new secretary gave a section within the ministry the task of taking the public pulse with respect to casinos, plus five individuals were selected to coordinate work among civic groups, chambers and organizations, clerics and others, in order to identify the opposition and to work out possible problems.  As well, countermeasures were planned and a positive spin was given to any and all publicity related to the matters.  Once the package could be ready all concerned expected congressional approval to be a snap.

In 1994 Silvia Hernández Enríquez was named tourism secretary by President Zedillo and the work continued.  Hernández became more directly involved than her predecessor as a promoter of casinos, and certain new congressmen (from both the Institutional Revolutionary Party and the PAN) became part of the developing pro-casino movement.  Everything looked positive.  Too, the coordinators had done a good job with the different sectors, and although opposition was proving more substantial than it would have been during the Salinas administration those responsible appeared to have the votes for passage before the 56th Legislature left office in 1997.

But Silvia Hernández, a professional PRI politician, also had her eye on the gubernatorial seat in Querétaro that year, and in the machinations to gain the candidacy she made the mistake of challenging one of those higher-up in the PRI pecking order, someone also interested in Querétaro.  Still, things seemed to be going well with respect to the anticipated passage of the gaming legislation, and Hernández kept working on her personal agenda.

But suddenly, just days before the 1997 congressional vote was scheduled on the gambling legislation, the political rug was pulled out from under Hernández.  Orders were sent by the PRI executive committee for that party’s congressional majority to withdraw support for the gaming law reforms and thus the vote was never held.  Hernández (now a senator) was somewhat damaged politically, she then lost the gubernatorial candidacy nomination and next the president replaced her in the tourism ministry with Oscar Espinoza Villarreal.

As for today, it appears there will be sufficient bipartisan support to approve the reforms once the measures reach the floor.

¹ See “¿Casino(s)? ¡Casi-sí!,” by Barnard R. Thompson; HispanicVista.com, November 19, 2001.