The current situation of the sector, casino reopening and the "new normal", the issues treated at SAGSE Talks Mexico

Among the main participants, there were: Carlos Carrion, AGEM Mexico president, Miguel Angel Ochoa, AIEJA President, Alfonso Perez Lizaur, President of the Association of Games and Draws Licencees and Providers, JD Duarte, CEO of Betcris. The moderator of the event was Pablo Zuppi – Partner and Director of Yogonet Gaming News.

As well as the previous edition, Fernando Polti (Consultant at Global Wizards) and Alan Burak (VP of Monografie) participated at the talks.

The event was sponsored by Play'N GO and Betcris, Latamwin and End2End, the institutional support of Fecoljuegos Colombia, APEJA, SONAJA, ALAJA and ALEA (from Argentina).

Speaking about the current situation in Mexico, Carlos Carrión commented: "The impact has been greater in global companies, because we have stopped receiving income from all sides. The industry in Mexico is united and working, trying to help each other . An important point has been the union. Let us understand that we have all lost something and be supportive to get ahead. Manufacturers and operators are working for it."

Miguel Angel Ochoa, for his part, said: "Today the opening is focusing on shopping malls, shops, theaters, etc., not on gambling. Unfortunately, the image of the industry is still bad. We have decided at this stage to be under the radar, yes we have accepted sporadic interviews to inform and offer our point of view from the industry ".

Meanwhile, Alfonso Perez Lizaur said that he coincides with that topic. "We in the Association that I represent believe that the industry is very small and we do not count in volume at all. And it is true that there is a bad image of gambling, not only in Mexico but in the world. Only Las Vegas could open earlier. Our decision was not to be in the media to talk about the criteria for opening the governments."

Carrión highlights the positive aspects of the operators in the sector. "Many groups do social work and that is not becoming visible. I think it is time to enhance the social activities that operators do: donating equipment to care centers, offering places to open hospitals and other economic contributions that the industry makes to country, "he added.

Carrión then expanded on the subject of teleworking. "At Aristocrat since the beginning of the pandemic we had three 3 premises: Employees first, customers second and earnings third. Most of the employees are working from home. We have experienced a closer approach. We are having daily meetings with the nearby team and weekly with Latin America. Working remotely is not an impediment. In the case of game developments, many continue to develop new technologies and games from home. The situation has been difficult but we face it with technology. An example is this talk, where we connect from different cities in Mexico and other countries. However, we miss working close to people, with operators and casinos, etc. "

When asked about the reopening based on protocols, Miguel Angel Ochoa said the following: "The return is the priority. Today the rooms began to make adaptations to these sanitary measures of return: purchases of face masks, antibacterial gel, instructions and measures to casino staff, temperature measurements, even in some cases acrylic panels between machines. Until the vaccine is discovered, precautionary measures will have to continue. "
Then he added: "We believe that in June 5 or 6 states will open out of 29, in July the majority and in September the rest of them, such as Mexico City, which is where the pandemic affected the most. Here we try to make everything work well, but here there is no income and there are costs."

Regarding the treatment of lotteries and casinos in Mexico, Pérez Lizaur said: "The business is completely different. If the national lottery reopens, I think it will be opened in a month. The online lottery game is very low (2%), and since there were no people on the street, the lottery agents decided to close. The state also sees us as different activities."

Regarding the loss forecast analysis, Carrión said the following: "The impact on manufacturers has been very diverse but very homogeneous in terms of workers. In Aristocrat there has been a reduction in wages. It has been understood by many workers to be flows have stopped. There have also been suspensions. Such a large company without cash flow is difficult to maintain. This situation has lengthened a lot and is very complicated for everyone. In Mexico there is talk of a 100% opening in early September, which means they are open but not 100% working. On the casinos side, they are closed and they have had to take austerity measures in this regard."

Then he added: "For us manufacturers it will be a very difficult year, as well as the commercialization of equipment, but we envision a situation very close to reality. Manufacturers will be affected even when the rooms have already opened."

Pérez Lizaur affirmed: "The companies that I represent paid the workers in March and April in full. We only reduced the workforce in cases of temporary work (minority). Until May 15, I integrate, and in June it will be difficult for everyone to support workers' full wages because there is no way to sustain them. "

"It is true what Alfonso says - Ochoa agreed - the smallest companies managed to negotiate in April and are now negotiating a reduction in wages. The expired contracts were not renewed, and they are asked to wait for the reactivation of the industry to come back."

Will online gaming grow as a result of quarantine? Pablo Zuppi, moderator of the event, asked. Lizaur says that, in the cases of Caliente and Codere, the business has grown although they lost very important income, since sports betting worldwide decreased. "Online gambling depends on the initial expense that is made. The online casino has grown. Some customers will return to the classroom, but without a doubt the online casino will have grown significantly. It will surely decrease a little when the players can return to the rooms".

Ochoa added: "When casinos are reactivated, people will gradually return, as they will allow us to open little by little. Online gaming will continue to grow outside the casino. That market is younger, and they are creating this activity as an option. I do not think that there is a major change in proportion in the two options."

Carlos Carrión: "I agree with both of them. Online gambling has increased, as has online commerce in general. The situation warrants it. Casino is a social activity, like cinema. Whoever likes it will return, and others will continue playing in I think people are going to come with more desire. "

Regarding marketing for equipment suppliers, Carrión commented: "We are looking for commercial strategies to help casinos. We have had online meetings and we have agreed that manufacturers have to be supported, but each company should discuss it with each client, under the framework of competitiveness and respect. "

Finally, when talking about a possible modification of the federal gaming law, Ochoa says that he does not believe that it will be modified during this six-year term, and he sees it in a positive light, although he expressed his concern about the entry of the illegal online game that operates as unfair competition towards current operators.

Carrión notes in this regard: "We work with SEGOB in the aspects of gambling. In Mexico there is a regulatory framework, a regulator. It is a legal country with a current regulatory framework, which can be updated, but ultimately functional and operational. "

"There is talk of the new normality where I think we are all aware that we have to take different actions and adapt to a new environment," Ochoa concluded.