Mexico Online Poker Regulation As Early As Sept 20th

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Friday, September 5th, 2014 | Written by Shane Larson

Mexico’s enacted its Federal Law of Games and Raffles in 1947, and aside from a slight modification in 2004, the draconian law has remained unaltered ever since. A recent criticism of the legislation has been that it has little relevance to online gambling, but now it seems the USA’s southern neighbour is finally ready to clarify its position on the issue as online gambling activity continues to proliferate across the country of 113 million people.

According to Mexican Gaming Commission (AIEJA) President Miguel Angel Ochoa Sanchez, the new initiative is slated to be introduced to Mexico’s Parliament on September 9, and the gaming bill could subsequently be approved as early as September 20.

Bill’s details largely unknown

While precious few details are known about Mexico’s updated gambling bill, it is believed that both online gambling and online poker will be addressed as the country seeks to clamp down on a range of criminal activities not sufficiently covered in its current gambling code.

One such activity is the widespread proliferation of illegal gambling shops offering slot machines and other gambling activities, much like the thousands of Internet cafes which have sprung up across the USA whilst having no legitimate association with the gambling industry.

At the same time, the bill is expected to protect the interests of traditional Mexican gambling venues, such as pari-mutuel betting tracks, and as Ochoa Sanchez explained to Mexican news outlet El Universal, recently:

“Anything that involves this business [internet gambling] must be certified, and the information must be transparent. [The AIEJA is] going to regulate and reorder online play, too, [which will help recovery] of the horse and greyhound racing industry.”

Mexico’s grey market to undergo transition

Mexico has a huge grey market in terms of online gambling, and although operators are currently required to form partnerships with Mexican companies before offering their services, for years offshore sites have been operating with impunity in Mexico’s market.

In fact, post-Black Friday Mexico soon became the destination of choice for hundreds of professional online poker players who subsequently relocated to up-market resorts such as the one located in the Mexican state of Baja California. A “full relocation service” was even set up to assist US poker players to complete the necessary paperwork, find a place to live, and reactivate their internet poker accounts.

Now, however, Mexico’s new gaming law may soon put an end to its status as a refuge for US online poker players, and as mentioned on cardschat.com:

“Mexican regulation is likely to spell the end of the fiesta. As is the case with the new US markets, heightened regulation and taxation means Mexico will step up the fight against offshore dominance, possibly outlawing many of the sites favored by American ex-pats (and native Mexicans).”

Mexican poker players welcome overhaul

While US poker players may not be enthralled by an overhaul in Mexico’s gambling industry, many local players are optimistic iPoker reforms will help grow the game, including former PokerStars Team Pro and WSOP bracelet winner Angel Guillen, who believes the new law could lead to a poker boom.

“A big event like this one is what we are missing in Mexico. As soon as that happens, poker is just going to go insane,” commented Guillen.

Talking about the current poker options available to Mexicans, Guillen said that in addition to players competing on grey market online sites and underground live venues, a number of casinos also offer electronic tables and live poker rooms, although these practices are not considered fully legal.

Tournaments key in developing poker industry

As part of its gambling overhaul, Mexican officials are also considering allowing live poker tournaments to take place within the country, something not seen since 2008 when the PokerStars.com LAPT Nuevo Vallarta event was suspended on Day 1 by local gaming officials. Needless to say, major poker sponsors will be keen to secure an official formal license before attempting to hold a tournament on Mexican territory again, and speculating on the importance of such a development, Guillen said:

“Poker has grown a lot in Brazil since they have started to organize tournaments all over the country. Now, I am expecting something similar in Mexico as well.. The law is kind of tricky at the moment. But they are working on it, and hopefully we will have a big tournament in Mexico very soon. September will be the month that is going to show us where Mexico is headed poker-wise.”