Mexican high politics and gambling have become inextricably linked since the 2 June announcement by the Interior Minister of his intention to step down from his post in order to start campaigning for next year’s presidential election. Santiago Creel, a close ally of President Fox who cannot stand for re-election under Mexican law, is seen as a strong contender to win the National Action Party (PAN) selection process. Then, just a week before the intention became fact, Creel opened the Pandora’s Box of Mexican gaming legislation.

In the tortuous soap opera that is the story of gambling in Mexico, a new sub-plot has emerged. The Interior Minister, before leaving his post, authorised 130 licences for betting shops and remote gambling permits, including 65 to the major television channel Televisa. The gambling law is still under discussion in the Mexican legislature and Creel has jumped the gun on granting the licences. Of course, in no time at all, the Mexican press, public and opposition parties smelled a rat: campaigning + air time = Televisa licences.

The move has since been described as the equivalent of issuing cheques with no funds, as the permits had bypassed the legal requirements for the federal government to obtain the agreement of Regional Government. A full investigation has been instigated by an all-party commission, but Creel maintains that his intention had been to ‘democratise’ the gaming industry. Unfortunately his actions have probably set back the process of gaming legislation in Mexico. By allowing television companies to run ‘telegames’ gambling at home would be easily available but with no public benefit from taxation.

Whilst gambling legislation continues to struggle in the political arena, being pulled apart by conflicting ideologies and opposing lobbyists, illegal gambling is enjoying boom times. Often quoted as having the largest say in keeping the Gambling Bill from progressing, the illegal industry makes millions of dollars every month and pays no taxes. Santiago Creel’s premature action on ‘liberalising’ one area of gaming has done no favours to the legitimate gambling industry. (E-07.04.05)

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