Casinos in Mexico to be able to operate “like in Las Vegas” according to a court ruling: What does it mean?

What does the court ruling imply?
The ruling declared the regulatory reform of November 2023, promoted by former president Andrés Manuel López Obrador, unconstitutional. This reform sought to restrict casino activities by prohibiting new slot machines, toughening the requirements for opening betting rooms, and prohibiting operators other than permit holders from managing these businesses.

The court, however, supported the criteria of Judge Martín Santos. According to this criterion, “number drawing machines” or slot machines are permitted by the Federal Gaming and Sweepstakes Law (LFJS). Furthermore, it was accepted that card, roulette and dice games also comply with the law because chance is a determining factor in their outcome.

Which casinos benefited from the ruling?
The court ruling favors several important operators in the country. Among the beneficiaries are:

-Western Sports Shows (EDOSA):
-Casinos: Casino Midas, Grand Toreo, Flamingo, Casino Gran Palacio and the Netabet online casino.
-Attractions and Thrills Vallarta (AEV):
-Casinos: Paradise, Jubilee and Vivento.
-Mexican Festive Events (EFM):
-Casino: Rocks Casino.

Permit Background
The history of permits to operate casinos in Mexico dates back to 1998, when the then Secretary of the Interior, Francisco Labastida, granted EDOSA an initial permit for a fronton and four rooms. This permit was valid for 21 years.

In 2018, during the government of Enrique Peña Nieto, the permit was extended until 2034, with authorization to operate 30 additional theaters. However, the regulatory changes promoted during López Obrador's six-year term unleashed a legal battle that culminated in this ruling.

The impact of the ruling on the sector
With this decision, casinos will be able to diversify their offer and compete with a model similar to that of Las Vegas. This includes:

Operation of traditional games of chance, such as craps and roulette.
Expansion of the use of slot machines.
In addition, the ruling allows operators to maintain their valid permits and continue their operations under the framework of the Federal Gaming and Sweepstakes Law.
Who is behind the operators?
The favored companies have key figures in their management:

EDOSA: Directed by Marcos Maceira Cortaberri and Juan Francisco Aguirre Daw.
AEV: Its shareholders include Ricardo Henaine Mezher and José Manuel Martínez Garza.
EFM: Represented by José Luis Rangel Martínez.
However, some public documents have pointed out possible links of foreign investors with these businesses.

What's next?
Casinos will be able to operate under more flexible conditions, while the government will have to adjust the rules to ensure a balance between economic activity and the protection of users.