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Latino America
Ricki Chavez Munoz reports on what’s happening in South America
As the industry develops not everything is hunky dory in Latin America. It’s true that Peru had a great gaming show in August, and that Chile reports record revenue for the first semester; that Colombia continues on its way to regulate its industry having put into liquidation misfiring regulator ETESA; that Bolivia, although with a heavy gaming tax, has very little grey area in its legislation; that Panama carries on opening casinos; that Nicaragua has a brand new and groundbreaking Betting Law; and that most countries make advances in the right direction.
It goes without saying that Venezuela and Ecuador are not far from our mind, as their respective governments overstep the line and close legitimate gaming operations; or that operators in Trinidad & Tobago must close the doors at 9pm on account of an imposed curfew that is killing trade. Also that Brazil has no legal gaming apart from sports betting at the race tracks.
Whether with light or heavy gaming load, Latin American operators have the recognition they deserve and are being greeted by the organizers of Las Vegas G2E as VIP dignitaries representing practically the only region where, on the whole, the industry moves assuredly forward. Having said this, we are dedicating this column to the travails of the Mexican industry, and also reminding you that Merkur Gaming has excelled with the capture of our much loved Cantinflas, who will be making us laugh once more in an ingenious game, in his centenary year, on their stand at the Sands Expo in Las Vegas. See you there!
Cheers,
Ricki.
Mexico 10 years since
I have been visiting Mexico to check out gaming operations developments since 2001, when as part of an investment group we were invited to open slots operations in the country. As gaming professionals with several decades in the industry, our Las Vegas-based group obtained an insider’s view of operations in Mexico, then. In those years, the only way to operate gaming properties, like they did in Monterrey, was through the use of legal recourse to Mexican habeas corpus judicial processes, which we considered a bit too risky to engage in, and as our funding has SE controls we just took a rain check to see how gaming developed in this great nation.
We have been in an out of Mexico since then and, as everyone knows, there are no secrets to uncover to see how gaming operations have progressed in Mexico. To date, casinos use the betting and lotteries regulations tag to comply with current legislation under the accommodating gaming regulators or permit issuers. Suffice to say that whenever a group has asked me to consult for ventures in Mexico, a no go report has been the result as the legal situation of gaming permits is not clear.
It has befallen on a 52 death tragedy at the Casino Royale in Monterrey for the Mexican government to raise the voice of alarm on the legal situation of many local casinos. However, this has given a free rein to a an incessant attack on all gaming operations in Mexico by the usual detractors and some new ones thrown in, as election fever raises the temperature of politicians who seek media prominence. Our editorial in the link is critical of media irresponsibility and here at CasinoCompendium we offer our support to all regulated businesses that engage in responsible gaming through and through.
Seven years of disorder in Mexican casinos
In its September 08 editorial the distinguished Mexican newspaper, El Universal, published a piece entitled ‘Corruption in Casinos’. Without doubt a selling title, but much mistaken in our opinion. This aside, the Editorial crusader subtitle reads that it is an “Inspiration in the public interest, responsibility, and search for the truth, for permanent justice and for the fulfillment of these...” Furthermore, we insist that this Editorial piece suffers from myopia.
Below we copy the link to the Editorial ( In Spanish language only) but basically the commentary has as its base the criminal attack on Monterrey’s Casino Royale that “serves to remind us of the disorder that exists in gaming and betting establishments.” In this they are right, writing disorder in bold print, purportedly for betting shops or salons but which are full casinos in everything but name.
The journalistic attack of El Universal is against Roberto Correa, ex director general of Gaming and Betting at the Governance Secretariat (SEGOB), the government ministry that controls the emission of licences authorizing gambling venues in Mexico. This refers to the fact that Correa “granted – one day before resigning – a permit that allowed just one business group 41 betting venues” and the article all but blames the ex-official for the entire disorder of the country’s gambling sector.
Certainly there exist serious doubts over the actions of Correa, as reported by El Universal, other media and experts, in the search for easy targets. However, if it is a question of responsibility and the search for the truth, El Universal and the rest must dig more deeply into the actions of an official who has almost no political power.
As we have said from the time in 2004 when the then president Vicente Fox signed the Regulations (Reglamento) to the 1947 Federal Law of Gaming and Betting, under the astute direction of ex Secretary of Governance Santiago Creel, the only thing this legal manoeuvre could do was create confusion in Mexico’s gaming sector. This in particular because it placed in the hands of a few companies and private individuals hundreds of permits to open lottery gaming and betting centres. This along with the contract lease of such permits to third parties, consented by the regulators has enabled operators to convert the gaming rooms into de facto casinos.
In 2004, and well before then, there existed bills in Congress to formulate a Casino Law to replace the outdated 1947 Act. Santiago Creel put an end to all these with his ‘Reglamento’, as a workhorse to seek the election as the PAN candidate in the next Mexican presidential race. By pure coincidence or good luck, SEGOB granted 65 gaming licences to the brand new company Apuestas Internacionales, subsidiary of the transnational Televisa, queen of the television soaps and rating champion throughout Mexico.
Up to here, El Universal’s myopia but now to the theme of responsibility. Certainly mass communications media tittles are specialists in half tones, half-truths and sitting on the fence so as not to injure the sensibilities of influential politicians. However, a headline such as ‘Corruption in Casinos’ is designed to sell newspapers like hot cakes and has nothing to do with “inspiration in the public interest”.
The corruption, gentlemen of El Universal, is not found in the casinos, and if it exists there, it is because of the actions of questionable political and administrative conduct that has compromised the gaming sector in Mexico. Without this, there would have been no casinos now in Mexico other than the slots parlours that operated in place like Monterrey, under court rulings (recursos de amparo) before Creel’s ‘Reglamento’.
Today newspapers such as El Universal have used the highways and byways to tarnish the image of an industry that so far has responded only to erroneous political and administrative actions that created the present situation in the Mexican gaming industry.
If we are speaking of justice, this too must be found in the political and administrative management that fails to meet its basic functions supervising the adherence to rules for public security, such as ensuring that emergency fire doors remain unlocked and escape routes remain uncluttered, in public places like the Casino Royale.
Why do these and other procedures remain unenforced? Because of the disorder in the sector which has not been generated by gaming operators of casinos and gambling properties.
In the gaming industry we work responsibly in properly regulated jurisdictions under laws and regulations supervised by legally established state agencies. Only in this manner is public interest safeguarded responsibly and the truth is not difficult to find because the industry plays with all its cards above the table, complying with both the law of the land and the regulations that support it.
Unfortunately this situation does not exist in the Mexican gaming industry and over 50 people have died for no reason because disorder promotes crime, whether committed by politicians, businessmen or common criminals. Now more than ever Mexico needs a casino law such as those that exist in Chile, Peru, Spain or Great Britain and it is the responsibility of everyone, particularly the media, to demand this right so that order will exist in Mexico’s gaming industry – and without irresponsibly pointing an accusing figure at any convenient scapegoat.
*http://www.eluniversal.com.mx/editoriales/54593.html
