The Association of Licensees and Suppliers of the Entertainment and Gambling Industry in Mexico held an assembly on November 26 as part of the event to attract more members, including suppliers, manufacturers, casinos, online platforms and business partners.

At the beginning of his speech at GAT Caribe Cancun, Miguel Angel Ochoa spoke about the partnership between GAT Caribe and AIEJA. “I would like to see a group that unites all the industry associations in Latin America,” he said, adding: “There are 2 in Peru, 3 in Colombia, there are associations in Argentina and throughout the continent, including Spain.”

Gaming sector regulations in Latam
He then gave his point of view on the current regulations of the sector. “The problem we have throughout Latin America is that the regulations that are being implemented in the continent are tending to make the industry punitive and restrictive. I remember the Colombian model. I was there at the Latin American Gaming Summit where the Colombian finance secretary said that what had to be done was to charge low taxes to attract more investments. Today it seems that the trend is the other way around: more taxes.”
He then stressed that we have to see what is happening in Europe, Asia and North America, and emphasized that both in Las Vegas and Macao, in addition to gaming, there is a push for tourism, shows, food and even tours in stores.

Working to grow in the global market
“Latin America represents only 4% of the global gaming market, and we want to have a greater share. Hopefully, in some talk we are giving here, celebrating GAT's tenth anniversary, we will talk about 8% of the global market,” he said.
“We have to work hard to modernize the sector. The most successful experiences we have on the continent, in Colombia, Peru, Argentina, and now Brazil, certainly Mexico, are attractive markets. We have to consider regulations to project ourselves with growth rates higher than the international average,” he said.

Positive perspectives for GAT Cancun
“It could be an opportunity for the growth of the domestic market. The perspectives are very promising. At least for the next decade, the challenges are important, for a solid and sustainable growth,” Ochoa stressed.

AIEJA celebrates its 15th anniversary
“When we started we were 20 members, today we are 70. It seemed like there were 200 rooms and today there are 430. There were no online gaming operators, and today there are 81. There  are also online payments, technology and many activities that we have to promote” said Ochoa.

“How can we strengthen this trend? First of all, we have to ensure that Latin American markets not only have these exhibitions and conferences, but also create this Pan-American gaming federation that will allow us to fight more effectively against the strongest enemies that the industry have. First, we have to homogenize the legal processes for the operation, and create more solid markets for regional and international investors who intend to operate in the market.”

“In the association there are members who are competitors among themselves, however, they are friends, and there are fiscal, legal and regional issues that unite them, and in that sense, the associations can work together. Joining an association is supporting the industry. Partners can help each other so that the operation of their casinos is not affected. Unity is strength, a very famous saying, and with it, we can coexist and achieve full growth.”

“A dream we have is to create a university for the training of specialists in gambling issues,” he added.

Mexico: Current scenario and change of government
Ochoa analyzed the current situation of the country: “This year has been very turbulent for Mexico, and there has been a presidential election that has changed not the color of the government but the person. For the first time, a woman has come to power in Mexico. And that added to the orbit of the arrival of Trump.”

“However, these general elements, which will strongly influence the dynamics of the whole, we can affirm from experience that in Mexico the game is still in the process of maturation and that this industry, surely in 6 years when the current government concludes, we will have to give good news to all of you,” he said optimistically.

Gaming authorities in Latin America

Ochoa says that the constant change of gaming authorities is a problem for the sector and wishes that regulators would remain in their positions longer. “In almost all countries, except Argentina and the US, tthere is only one regulator in Peru, Mexico, Colombia, Ecuador, Chile, and they rotate frequently. I have been president of AIEJA for 15 years and I have had 16 regulators. The common characteristic in the region is that they arrive without knowing anything about the sector. They learn, and when they learn, they leave. The case of a regulator who lasted many years was that of Manuel San Román. He lasted 16 years as gaming regulator. What did he do? He made the entire illegal industry legal. Instead of fighting them, he called them together and integrated them. Unfortunately, due to his advanced age, he retired.”

Growth of online gaming

“In Mexico, 60% of online gaming is illegal, only 40% is paying taxes. We have 423 casinos. The pandemic did hit the economy, but just as it affected physical casinos, online casinos grew exponentially,” said Ochoa.

Casino image change and tax issue

As a conclusion to his talk, Ochoa proposed the following: “We have to work hard on the tax issue. Gambling generates investment, employment and taxes. Many of our neighbors have inserted a reasonable tax into their normality.”

“We  have changed the image. In the last 15 years in Mexico no casino has been closed for prostitution, money laundering or drugs. On the contrary, you can go to the casinos and have a good time. People of all ages go. Most are women over 40 and they have fun. That is the current situation of casinos in Mexico,” he concluded.