In the countdown to a new beginning of the year, different players in the gaming sector continue to reflect on the main events of 2023, as well as predictions for the near future.
In an interview with Yogonet, Miguel Ángel Ochoa, president of the Association of Permit Holders, Operators and Suppliers of the Entertainment and Gambling Industry in Mexico (AIEJA), described the current scenario of the national industry and its “sustained growth trend”, as well as anticipating AIEJA’s plans to face the governmental decree that modifies the Gaming Law Regulations.
What overall balance can you give us of what 2023 was like for the national industry and AIEJA? Any milestones or achievements you would like to highlight?
It was a good year for the industry in our country. We have been recovering from the pandemic and, as of today, we have the entire industry active again. From around 380 casinos that were in operation in March 2020, today we have 429, all of them recognized by the Ministry of the Interior. On the other hand, the gaming halls have recovered the capacity of the people, even with a certain increase. We estimate that the casinos installed in the 29 States of the Republic (of the 32 that make up our country) receive close to seven million visits per year; the pre-pandemic schedules were also recovered.
For AIEJA, it has also been a good year. One of the indicators is the substantial increase in our membership. As of today, we have about 60 affiliated companies, among which there are a dozen licensees and almost 20 operators, and the other 30 are made up of machine manufacturers, and authorized service providers, which are licenses granted by the Ministry of Finance and Public Credit to monitor the machines in real-time, and the whole range of online gaming involving not only the offer of the operators in this vertical, but also payment platforms, gaming platforms, croupier training academies, law firms, etc.
If there is a milestone we could mention for the industry in our country, it is its sustained growth trend. The gaming industry is paying taxes, generating domestic and foreign investment, and has good growth in terms of employment. We estimate that our sector generates around 200,000 jobs, both direct and indirect, adding those of the land-based sector, those of the online vertical, and all the services and suppliers that work for the industry.
Recently, the Mexican government approved a decree that reforms the Gaming Law and bans slot machines. How do you think this measure will affect the sector and how will you face these challenges?
First of all, I would like to clarify that it is not a reform to the Law. It is a modification to the Regulation of the Law. Why do I make a difference? Because the law is approved by Congress, and the Regulation is simply approved by the Executive. This modification does call our attention and worries us, since, although for the moment it does not prohibit slot machines as it seems to be read in the newspaper articles published these days, it practically prohibits the opening of new slot machines in the country and this implies that there could be no more slot machines in the future. If this catastrophic horizon were to materialize, there would effectively be no more machines or live gaming tables.
Nevertheless, the 429 casinos that are currently operating a number that could grow to 444 because some rooms are in legal processes to open or reopen-, will continue to do so in the short and medium term, with their machines and live tables.
Without minimizing the potentially negative scope of this decree, I believe that it offers us the opportunity to join forces with the Mexican government, with the legislative branch, both with the Chamber of Deputies and the Chamber of Senators, and with the industry as a whole to propose a new law initiative to replace the one that currently governs the sector, which is very old. As you surely know, it dates back to 1947 and has not undergone any reform since then. Therefore, it is completely obsolete in the face of the technological and scientific advances that today nourish our industry.
How will we deal with this issue? First of all, as a precautionary measure, we will have to resort to amparos. They do not leave us many options in this regard. With these amparos, we intend that those who win their benefit, either through a provisional or definitive suspension, things will remain as they were before the publication of the decree reforming the Regulation. And secondly, we are working on a new initiative of the Gaming Law that, when published, will revoke this modification to the Regulation, mentioned above.
What news or event of the gaming industry in Mexico or LatAm do you consider the most outstanding of the year that is ending and why?
In recent years, Latin America has had a very important growth in terms of events. This increase took place until 2019, but it stopped suddenly during the period 2020 – 2021, due to the pandemic that impacted the world in general.
Today, the events have emerged again in Latam. I will only mention some very important ones, such as the TAG organized by Colombia, the event organized by SBC in Brazil, the Peru Gaming Show, the events organized by the Argentinean Gaming & Media News, or those organized by Latam Media Group and obviously, the one organized by Mexico: the International Gaming Convention, which, by the way, will celebrate its fourth edition from March 12 to 14, in Mexico City.
I would also highlight the SBC held in Miami, Florida, from October 31 to November 2, which was attended by 3,000 delegates and had a great impact on Latin America, even though it was not an event in Latin America per se, but was very focused on its markets.
What are the association’s expectations for the Mexican market in 2024?
The expectation is that, although this new regulation is in force, we believe we will continue to operate normally, serving our clients punctually, since the recent modifications stipulate that acquired rights will be respected. That is to say, all those who were operating to date, who had machines, who had live gaming tables, will continue to do so with total normality. And this will allow us to grow.
Additionally, 2024 will be an interesting and at the same time somewhat complicated year, but it will offer some opportunities, as it will be an election year in Mexico. President López Obrador will finish his governmental term on September 30, 2024, and the person who will be elected in June of next year, in the country’s ballot box, will come in. Practically, it will be one of the two women candidates: Claudia Sheinbaum, who belongs to the party of the current president, or Xóchitl Gálvez, who represents the opposition coalition. So, most likely, we will have a woman president for the first time in Mexico.
How are you preparing for the IV International Gaming Convention?
We are making every effort to bring as many international participants as possible, not only from Latin America but also from the United States and Europe, as well as trying to attract some participants from Africa, Asia, and Oceania so that the international name is really strong.
On behalf of the AIEJA team, I would like to take this opportunity to wish all the members of Yogonet a Merry Christmas and a Happy New Year.
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