The administration of President Andrés Manuel López Obrador has made a momentous decision by approving a groundbreaking decree that modifies the Federal Law of Gaming and Sweepstakes in Mexico. The change, which took effect from November 17, specifically eliminates raffles held using slot machines.

The decree, introduced in September and recently published in the Official Gazette, outlines its purpose: “to regulate the provisions of the Gaming Law for the authorization, control, surveillance, and inspection of the games when they involve bets, as well as the draw in all its modalities, except for the draws held by the National Lottery.”

According to the Ministry of the Interior (Segob), the provision allowing the “drawing of numbers or symbols through machines,” sometimes known as slot machines, is repealed by the modification. Only draws conducted by the National Lottery are accepted as legitimate under the new rules.

Impact on Slot Machines and Casinos

The federal government’s decision suggests that it will no longer be issuing new licenses to businesses that have slot machines. Current permits will not be renewed; instead, they will be honored until their expiration date. Crucially, the directive is not retroactive, thus casinos that have slot machines can use the equipment up until the end of the permit, but no later.

Casinos are required to stop utilizing these licenses after the 15-year non-extendable permit validity term is over. Permits for cross-betting activities in different spaces will also be valid for a least of one year and a maximum of fifteen years, according to the rule.

This change was made seven years after Felipe Calderón’s administration legalized gambling machines. Slot machines were deemed lawful by the Supreme Court of Justice of the Nation in 2016, classifying them as “sweepstakes” as opposed to games of skill or chance.

In contrast, the Ministry of the Interior makes the claim that slot machines “are a source of corruption of minors; their use is not a game, it is an addiction that opens the door to crime.” The statement highlights worries about networks of organized crime that are associated with the installation and usage of these devices.

There are concerns regarding the future of casinos and the wider effects on the gaming sector in Mexico as a result of this regulation change that the country is undergoing.