The conference "Updating the Gaming and Lottery Law in Mexico" was held within the framework of GAT ExpoCDMX 2025 , bringing together industry leaders at the Expo Santa Fe Convention Center . The panel was moderated by Rosa Ochoa, Director of SCCG Management LATAM , and featured the participation of Oscar Paredes Arroyo, President of the Board of Directors of AIEJA , and Carlos Portilla of PR&A , who shared their vision on possible legislative changes, their impact on the industry and the path towards a more modern and competitive regulation for the Mexican market.

Rosa Ochoa  opened the discussion this way: “I want to start by commenting a little on the context of the Gaming and Lottery Law, which dates back to 1947. This was the Big Bang for our industry, and thanks to that law, many of us are here today.”

 And he added, "Mexico was in a period of economic growth after World War II. We had our first civilian president, after several military presidents. And at that stage, there was an interest in sustained economic growth.

 And in that sense, the Gaming and Lottery Law, passed that year, 1947, allowed for the consolidation of gambling activities that already existed in our country. In casinos, pelota courts, at various fairs, and even in the national lottery".

 

 The current state of the regulatory framework in Mexico

Then it was Carlos Portilla of PR&A 's turn to explain, "The Federal Gaming and Raffle Law is an opaque, lax, obsolete law; it's more than 75 years old and it creates confusion." In the 1920s and 1930s, when Mexico had, above all, five large casinos, including those in Guadalajara, Mexico City, Tijuana, and the Federal District, which were glamorous and brought together Mexico's elite, the highest social class, but not only because of gambling. They were said to be places where there was art, where there were exhibitions, where there was music. In other words, they truly functioned as centers of attraction.

But at the same time, there were an estimated two hundred establishments, the historians who were located on the border and in very small tourist areas, small betting houses, which were creating chaos, politically speaking. I would tell the government many complaints about the mafia there".

 And he added, “Miguel Alemán published a law from 1947, that law that only has 17 articles, of which we can say that 3, perhaps 4 refer directly.

One that empowers the regulator to issue legislation in the future. But two others that were mentioned are confusing. And I explain that this has been a problem we've been dragging on in Mexico and why new, modern legislation is urgently needed.

 What are those two articles? Article 1 states that gambling with bets is strictly prohibited in Mexico throughout the country. Article 2 then establishes that only a selection of skill games will be permitted, including horse racing, human racing, racket games, chess, Chinese checkers, etc".

 And then he added, "We were even doing well in skill, but there's one in there that they call dice. I imagine it was a mistake by the legislator because dice isn't skill. But then, in section B, it says raffles. If they were initially saying there were no games of chance, there's a serious contradiction when they talk about raffles. When they mention raffles, mind you, there's no method they prohibit, there's no prohibition on how they're carried out. That's how these raffles were finally accepted. What's up with that law? We don't understand why, if they were allowed anyway, somehow, they close the casinos in Mexico."

"And it remains the same. Until certain professionals, certain lawyers, and certain businesspeople realize that within the law, there is no such vagueness in the article that allows for lotteries. And then they begin to seek these authorizations from the government, also supported by constitutional protection lawsuits. The big problem, which I've always said occurs, is the changes.

 Because there are, yes, beginning to be authorizations, unfortunately, very different from one another. At first, some were for one, two pages, others for fifteen pages, some for one, others for a hundred, in short, all the permits are very different. I want to conclude by saying that we need a new law; we need one that is clear, so that it doesn't leave these vicissitudes, these differences that can be interpreted".

 Oscar Paredes Arroyo, President of the AIEJA Board of Directors, then spoke. He explained, "There's a gray market when the court or tribunals defend or protect an individual to install machines in gambling games, and a completely illegal market. The 1947 law is open to many interpretations. One of them, when it says that gambling games be approved, I didn't understand what it meant and created confusion with the second term my dear Carlos mentioned, which is "lottery." Why? Because anything can be a lottery."

 “When they are placed, the cards are drawn; when dice are played, the numbers that were in the games are drawn;.All this confusion from the authorities, who didn't understand the legal scope of the word "drawing." So, they said, "OK, there can be drawings, they're authorized, and there can be the following games: horse racing, giveaways, sporting events and they rolled the dice.”

“What is prohibited in a general interpretation of the law is that gambling without permission is prohibited in Mexico. The ban isn't on gambling, it's on permits. And that will remain in place and must continue because we can't allow mafias to come and put machines on the streets and things like that”.

 How do you think this situation affects Mexico's competitiveness compared to other Latin American markets?

 Carlos explained, "Of course, it's affecting our competitiveness, and my colleagues here certainly see it when there's no real legal interpretation, so they step aside. And they obviously don't want to continue with an investment that could be beneficial for Mexico."

 And he added, "I'm talking about legal uncertainty. And then, of course, we have to look at the impact of competitiveness. When I start to review it with markets like Spain, Colombia, and Peru, which we have here, they're going in the right direction, on the right path." They have a correct growth law, they have a law that encourages people to bring investment to create new places, etc. Now, if we don't have it, what's happening when that law is lax and comprehensive or allows for diverse criteria and interpretations, depending on the time and place of different administrations? The industry doesn't grow. One day yes, one day no".

 Is it necessary to thoroughly update the current regulations or is a new law needed?

“I definitely insist on a new law. Because the regulations, how did they come about? There was an attempt to issue a new law, and politically it wasn't accepted. Since there wasn't a law, some instrument was needed to regulate it, and something we call a law-regulation was created. And the regulations have to specify how to do it. So we propose a law that should have a maximum of 50 or 60 articles that specifically address betting and the modalities addressed in the regulations. The answer, I repeat, is whether a new law is imperative.”

Finally, it was emphasized with concern that "in Mexico, it's estimated that 40% goes to illegal gambling. And I've heard this; various authors and various studies have mentioned it. Considering this, it means that illegality is widespread and must be combated."

Relive GAT CDMX  2025 experience with SoloAzar's social media coverage and exclusive interviews.
Follow us on LinkedIn and Instagram to stay in the loop!