Whilst Peru is busy cleaning up its act with regards to slots operations by changing 10 judges involved with rulings in favour of unlicensed operators, Mexico has given the green light to Class II gaming machines. The Supreme Court has finally ruled in favour of the controversial decision taken by the ex-Secretary of State to grant betting licences in September 2004, which some legislators had described as unconstitutional. The judges making the ruling were adamant that the operation of casinos was still illegal under Mexican law but that Santiago Creel, in granting licences for sports betting and bookmakers, had not exceeded his powers.

Questions were raised over the legality of the 198 licences authorised by Santiago Creel on the eve of stepping down as Secretary of State. There was the suspicion that the 130 granted to the big media company Televisa could have been linked to Creel’s need for publicity as he sought nomination as a presidential candidate. A bid by some legislators in November 2004 to have the licences suspended was refused in May 2005 pending a ruling by the Supreme Court. That ruling has now been given.

By eight votes to two the Supreme Court has pronounced the remote betting centres constitutional. The two judges who voted against the motion still consider that the federal government had invaded the territory of the legislature. The eight judges in favour argued that it was better to regulate and supervise betting activity, which could anyway take place over the unregulated Internet. The government is now free to grant licences for the games and sports permitted under Mexican law as well as lotteries.

The decision of the Supreme Court has been greeted with satisfaction by operators and investors, both foreign and national, who are already running video lottery gaming machine venues. It has also been applauded by the unions, as the gaming industry in Mexico is now expected to create employment, bring further foreign investment and provide a boost to tourism. On the subject of casinos, one union leader described as unbelievable that 12 years of wrangling still had not produced a comprehensive gambling law to include casino licensing. (E-01.24.07)

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