Opportunities in an exploding gaming market

MAKING A MARK IN MEXICO

In Mexico, as in much of the world, the legislators are trying to keep up with gaming technology and the gaming industry. Last year the government controversially authorised 130 licences for betting shops and remote gambling permits, including 65 to the giant media company Televisa. Electronic Yak (number raffle of bingo) venues are proliferating and, as the law is such a grey area, the gaming machine market is rapidly opening.

It is no secret that large numbers of illegal and fraudulently licensed gambling halls exist across the country. The illegal industry is such a powerful money-maker that it has long inhibited the passage of Mexican gambling legislation. However, there is now sufficient legality for big-name global operators to begin their invasion of Mexico without fear of compromising their coveted US gaming licences.

In August last year IGT signed a leasing agreement with Corporación Interamericana de Entretenimiento (CIE) for the provision of at least 1,500 bingo terminals. Last December Scientific Games was awarded a contract to provide technical support, hardware and consulting services to Apuestas Internacionales SA, a subsidiary of Mexico's Grupo Televisa, S.A. in connection with its number draw-based and related games.

Georgia-based Cadillac Jack this month announced a new order of electronic video bingo machines for Mexico, which will bring the total number of machines the company has supplied there to 5,000. Comercial Juegos de la Frontera SA de CV, the company acquiring the Class II machines, already operates Cadillac Jack machines at two locations near Mexico City.

“With the success that we have met in Mexico we are on pace to be a top provider,” remarked Greg Gronau, President of Cadillac Jack. “We plan to continue strengthening the relationships that we have built throughout the past year and we fully expect our business in Mexico to continue with the same phenomenal growth in 2007.”

Recently seen in the Mexico City metropolitan area were further examples of gaming machine growth. Argentinean Electro Chance has its electonic multi-station dice games at the Mexico City racetrack. There are Ainsworth slot machines at the Palmas Casino in the elegant district of Polanco. Mexico was a hot topic of conversation at the recent G2E gaming expo in Las Vegas, and likely to become increasingly high on the agendas of manufacturers and operators.

There is indeed phenomenal growth in the Mexican gaming market even as the politicians continue to argue over both a comprehensive gambling law and the validity of the new licences. The entrepreneurs are not awaiting the outcome but are working with and around the laws as they presently stand. It is anticipated that the explosion in the gaming industry will continue and that the number of electronic bingo machines alone will reach around 100,000 by 2008. (E-11.23.06)

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