Having reported the light at the end of the tunnel for Mexican gaming regulation, and the fast track that British legislation seems to be accelerating along, it now appears that in Mexico at least the train will be proceeding rather slowly.

The original bill of April this year in the Federal Gaming, Wagers and Lotteries Law has 175 articles and the amended bill with over 50 additional articles would take the new gaming law project to 233 having been through the process of public hearings. Then on September 17 Congress approved the regulations governing the old law with a provisional measure that had a 20-day period before the regulations became effective.

As the date neared some representatives argued the fact that a number of the new regulations would create confusion, indicating that they were illegal and anti constitutional as they over-stepped the limitations of the current law, but in spite of a recommendation from the House of Representatives to the Secretary of State to postpone for 90 days the regulations became effective. In view of this, it is expected that the representatives will begin a process of constitutional advocacy on behalf of the Lower House against the regulations.

Gaming legislation projects have been contemplated in the past in the course of three separate parliamentary sessions with negative results, and some of these looked at the possibility of authorizing casinos in Mexico, which are not allowed by law. Right now there is a mixed commission studying an amendment to the proposed Federal Gaming Law. At the prompting of the private sector in Mexico the first casinos are not likely to be licensed for three to five years after the legislation becomes effective, as they believe time is needed for investors and operators to get ready.

As setting up the required new Gaming Commission to oversee casino licensing and regulation will surely take all of the required 180 days after the publication of the projected casino law, it may be well into 2011 before the first Mexican casino opens its door. Problems for would-be foreign investors do not stop there, as every casino will be required to be a 50-50 joint venture between Mexican and foreign companies. This being the case it seems a little odd that Mexican businesses should fear being usurped by the foreigners, as they seem to be getting an inherent advantage.

From the current proposals, every prospective Mexican casino must measure up to the construction and equipment specifications of the top 20 gross income casinos in the world, for the year prior to an installation and operating permit being granted. If this is carried out literally Mexico may be in danger of having mega casino complexes without mega visitor numbers. This will have to be factored into any foreign investor's numbers crunching and may also be a problem for local investors when considering investment returns. There are many successful small casinos around the world offering job opportunities and paying healthy taxes that wouldn't be in the league for the top 1000.

So, Mexico proceeds towards legalizing gaming in fits and starts, as it has been doing for years. The law has yet to be passed and the Commission yet to be formed. Voices are still protesting, including the Church and some businessmen in the tourist industry opposing the measures, and others such as the National Entrepreneurial Tourism Council (CNET) wishing to delay and alter the bill. With Latin America not particularly high on the agendas of the big casino companies who have their faces turned to Asia and the UK, and medium companies looking to Chile, Mexico may have missed the train. Everyone has heard of the ‘mañana’ syndrome, but the current gaming legislation with a thousand discordant voices has an eerie echo of the Tower of Babel!

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