The III International Betting Convention in Mexico exceeds all expectations

During the inauguration of the event, the president of the Association of Permit Holders, Operators and Suppliers of the Entertainment and Gambling Industry (AIEJA), Miguel Ángel Ochoa Sánchez, assured that the casino industry in Mexico is prepared for the internationalization of the business, and pointed out that it has a growth potential of up to 100% in 7 years, speaking of online gaming; and 30% in land-based theaters, within the same period.

“We are prepared for the globalization of the industry. We want Mexico not to be left on the side and show that it has great competitive advantages over the world, when in New York, Boston and Chicago they have climates of 30 degrees below zero, in Cancun, Los Cabos and Acapulco, we have a very pleasant climate; Without a doubt, our country can be a very important point for the tourist attraction that seeks this type of entertainment”, he pointed out.

At the casino meeting, the head of AIEJA recalled that this industry, currently valued at 10 billion dollars a year, currently represents 200,000 direct and indirect jobs, between physical casinos and the online sector, in addition to having faced various crisis for more than a decade; and yet, they have been able to turn them into opportunities. 

“Crises are opportunities and we have come out of each of them. During the Covid-19 pandemic, we managed to create a unique sanitary protocol for the sector, emulating the prevention exercises that were carried out in Las Vegas, Macao and Monte Carlo, which allowed us to reopen the business”, he commented.

Likewise, Ochoa Sánchez indicated that among the challenges that the gambling industry still has pending is the modernization of the Federal Law on Games and Draws, as well as the design of a new state policy that understands the complexities of this industry. 

“We are with a law that has been in force for more than 70 years and that has not undergone any reform, that what came to life was the publication of the 2004 regulation and its modifications in 2012 and 2013; despite the fact that the Mexican Congress filed an appeal to annul this new law”.

For his part, Oscar Paredes Arroyo, founder of the Palace of Numbers, spoke about the urgent need for a Tax Reform in which a single federal tax can be established, so that the tax authority can distribute the corresponding percentage to the entities that house to casinos in their territories.

“We have to find a way to convince legislators of how a good tax reform will help us all. That they understand that what should be taxed is the profit, not the expectation of profit. You have to convince that the current tax base is incomprehensible, and explain how these laws are made. We have to give the right message to the

authority: we do not want it not to tax us, no, but we want to contribute to public spending, with clear rules, an ad hoc tax on the activity we do, not that the Special Tax on Production and Services (IEPS) be applied. We want to increase the contribution, but we want clear rules”, he stated.

The event, inaugurated by the Secretary of Economic Development of the Government of Mexico City, Fadlala Akabani Hneide, brings together more than 400 sector specialists from 20 countries, including the United States, Canada, Colombia, Peru, Brazil, Argentina, Spain, Belgium, Bulgaria and Costa Rica, among others.

During its first day of activities, the meeting also took place around issues such as the need for a reform of the Regulation of the Law on online Gambling, in order to fight against illegal gambling, which currently represents 60% of the online gambling niche.

“This does not allow for a level playing field for operators that are recognized by the Ministry of the Interior, since it also prevents a substantial increase in tax collection, and its regulation is necessary to provide greater legal certainty, both to companies that wish to establish themselves in Mexico and to the players”, stated Miguel Ángel Ochoa Sánchez.