June 3, 2004

UPDATE: Casino gambling in Mexico

By Barnard R. Thompson

(From legislative, media and private sector sources.)

A series of “consultation and discussion conferences,” the public hearing steps in the process that could lead to the legalization of casinos in Mexico, will begin June 11.  Francisco Javier López Mena (PAN, Quintana Roo), chairman of the federal Chamber of Deputies’ Tourism Committee, also said that the proposal to reform the obsolete Federal Gambling and Raffles Law of 1947 would be submitted to the Chamber (acting as the Committee of the Whole) during the next ordinary session of congress that begins on September 1.

While at least nine public hearings are expected, the locations identified to date include Acapulco, Cancún, Guanajuato, Huatulco, Mexico City, Puerto Vallarta, Los Cabos and Monterrey, according to Federal Deputy Francisco Javier Bravo Carvajal (PRI, Jalisco).  Bravo chairs the Chamber’s subcommittee for Tourism Infrastructure and Development.  Confirmation of hearing dates at the various locations is still pending.

(It should be noted that just because a hearing might be held at a certain location, that does not necessarily mean it will be one of those select sites that could ultimately be awarded a concession for a freestanding Monte Carlo or Montreal-type casino.)

Bravo pointed out that the intent of the public meetings is a final review of the new legislation that includes 175 articles, several transitory articles and a number of amendments to other applicable laws and regulations.  During these particular meetings, special consideration will be given to Articles 20 through 28 in the draft legislation, the articles that directly relate to the type of casinos in question.  (Articles 29-33 deal with temporary casinos at fairs and carnivals; while Articles 34-36 address casinos on cruise ships.)

Bravo also said: “We are not going to once again ask if this (law) is appropriate or not, what we are asking is if the rules and procedures, that are the newness of the bill, are correct.”

A number of private sector conferences and potential-site reviews, in what appears to be a lobbying effort for certain destinations that could be among those selected for first round casino concessions, are also now taking place.  The Confederation of National Chambers of Commerce, Tourism and Services (Concanaco); the Mexican Hotel and Motel Association (AMHM); and the National Tourist Entrepreneurial Council (CNET) held the first of these meetings on May 13, in Mexico City.  Subsequent visits, by representatives from the three entities, are scheduled for Acapulco, Cancún, Ciudad Juárez, Ensenada, Matamoros, Mazatlán, Puerto Vallarta, Rosarito and Veracruz.