MEXICO Law and Practice Contributed by: Carlos Fernando Portilla Robertson and Ricardo Valdivia González, Portilla Ruy-Diaz y Aguilar
• the permit holder or any of its shareholders or ben- eficiaries is convicted of fraudulent crimes, whether patrimonial, fiscal or related to organised crime or operations involving illicit resources; • the permit holder or any of its shareholders or ben- eficiaries is declared bankrupt; • the operation or services provided to the public are interrupted, either totally or partially, for a second time within a 12-month period without just cause; and • the permit holder modifies or substantially alters the nature or conditions of games including betting or authorised draws. In accordance with Article 147 of the Gaming Regu- lations, any infringement of the law, or of the permits issued by the Bureau, will be sanctioned with: • a fine; • arrest; • the suspension of activities; and/or • revocation of the permit and closure of the establishment(s). 3.6 Penalties for Unlawful Gambling Conducting games of chance involving betting with- out a permit issued by the regulatory authority is con- sidered illegal and is punishable by imprisonment. According to Article 12 of the Gaming Law, individu- als involved in unauthorised gambling and betting – including owners, organisers, managers, admin- istrators and players – are subject to a prison term of between three months and three years and a fine ranging from MXN500 to MXN10,000. This applies to all participants in the illegal activity.
This authority oversees all gambling operations in Mexico, with the exception of the National Lottery for Public Assistance ( Lotería Nacional para la Asistencia Pública , or LOTENAL), which operates under its own law and is owned and managed by the government. 4.2 Regulatory Approach The Gaming Regulations effectively provide for the organisation of games of chance in Mexico, and their promulgation ended several disputes and conflicts arising from the deficiencies of the federal law. Mexi- co’s approach in terms of regulation is therefore based on acquired rights. 4.3 Types of Licences The Gaming Law establishes four types of licences: • licences for opening and operating horse and grey- hound race tracks, jai alai fronton arenas, remote betting centres (sports books) and betting centres or rooms for drawing numbers (land-based casi- nos, under which live gaming, slot machines and online gaming activities are classified) – these are granted only to Mexican commercial companies duly constituted under Mexican laws; • a licence for opening and operating facilities for gambling at national fairs (eg, Feria Nacional de San Marcos ); • a licence for the opening and operation of horse race tracks in temporary scenarios and cockfight- ing betting; and • a licence for draws. The operation of sports books and land-based casinos requires the specific approval of the local municipality, stating its consent to the installation and operation of such establishment. There is no standard procedure for obtaining this authorisation, nor a standard docu- ment that local authorities use for this purpose, so the documents and wording differ from one administration to another. 4.4 Availability of Licences As previously mentioned, any person or business entity wishing to operate a gambling establishment must obtain a land-based licence before commencing operations. Only Mexican legal entities – ie, commer- cial companies duly formed and registered under the
4. Licensing and Regulatory Framework 4.1 Regulatory Authority
According to Article 3 of the Gaming Law, SEGOB, through the Bureau, is the federal executive authority responsible for the regulation, authorisation, supervi- sion and enforcement of gambling and raffle activities, including betting.
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