Mexican President Andrés Manuel López Obrador is sending a clear message to the gaming industry this week. Casinos are no longer welcome in the Latin American country, unless he approves them.
Mexican President Andrés Manuel López Obrador makes a public speech. He announced a plan to cancel all casino licenses the country has issued in the past four years. (Image: Reuters)
In a public statement on Tuesday, Obrador warned that Mexico doesn’t need casinos. He believes that many may have received licenses illegally, either through bribes or extortion, and is planning on making some changes.
A review is coming of existing casino licenses. It will focus primarily on when the license was issued, and the result could be catastrophic for a number of existing gambling houses.
End Of The Line
Obrador’s primary fight is with Mexico’s former president, Vicente Fox. Obrador, who assumed office in 2018, believes that too many shady deals emerged during Fox’s tenure. Some of these may have carried over when the administration changed hands.
Since 2019, Obrador has warned that he was going to take a hard stance against casinos and is now fulfilling the warning. López Obrador said he will ask Interior Secretary Adán Augusto López Hernández to review existing licenses and the result will likely lead to a battle.
If there have been any new licenses issued by Mexican states – and not the federal government – since Obrador became president, the Interior Secretary might order their immediate cancellation. In addition, the government will not issue any new licenses moving forward.
In 2020, then-Secretary of the Interior Olga Sánchez Cordero warned that Mexico’s gambling laws state that only the federal government can issue casino licenses. However, several casinos have emerged after receiving permission from state, not from federal, officials.
Obrador isn’t just going after casinos. He said in his statement that the government will not grant new concessions for certain forms of mining. This could also be problematic, as the laws currently give states and municipalities control over how they use their land. This legal precedent may also play a role when casinos start to fight the government for pulling their licenses.
Several Casinos On The Radar
Over the past six months, Mexico has seen several new casinos open in places like Cancun and Mexicali. The state of Tamaulipas has two new casinos whose licenses will now be under review.
Another, Ivy Casino in Mexico City, held its inauguration this past January. After the legal fight against Obrador that is sure to come, it will likely have to close, as well.
That won’t disappoint the community. When the casino opened, residents immediately took to the streets in protest, denouncing alleged irregularities in the construction and management of the property. The casino is less than 500 meters (1,640 feet) from a school, which they said violates federal gaming laws.
The protestors also pointed out that the casino never received federal authority to operate. In addition, they blasted Mexico City’s government for not having intervened and halted construction because of the lack of a license.
It’s apparent that existing casinos are going to fight Obrador’s order and will continue to operate during the legal battle. Barring police intervention to force them to shut down, it’s likely they will still be operational long after the president vacates office at the end of his term in September of next year.
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