Mexico’s Secretariat of the Interior (Segob) announced that it has completed a proposal to reform the Federal Gaming and Sweepstakes Law, with the aim of combating money laundering and tax fraud at casinos and betting establishments.
According to Rosa Icela Rodríguez, head of Segob, the internal review to update the country’s gambling regulatory framework has been completed. The current legislation dates back to 1947. The initiative will now be submitted to the Security Cabinet for consideration before potentially being presented formally.
The official also said during the La Mañanera del Pueblo press conference that she had met with casino and betting operators, whom she warned against engaging in illicit practices during administrative inspections.
“First of all, what I want from you is that, please, do not corrupt personnel from the Secretariat of the Interior, because I will close your businesses and I will put any colleagues who are receiving money from you in jail,” was the direct message she delivered to industry representatives.
In return, Rodríguez offered to regularize the status of injunctions and other pending procedures that operators had before the ministry. She added that the agreement has been respected and that relations with the industry have remained stable throughout her two years in office.
The Interior Secretary also acknowledged during the press conference that there are problems within the sector, but clarified that they do not fall under Segob’s administrative responsibilities.
In this regard, she said that “around 20 casinos” linked to money laundering or tax fraud schemes have been closed. However, she explained that these severe sanctions were the result of criminal and tax investigations carried out in coordination with the Attorney General’s Office (FGR) and the Financial Intelligence Unit (UIF), and that they have nothing to do with the regulatory role carried out by her ministry.
For day-to-day operations, the Segob chief called on business owners to comply with their tax obligations and respect their employees’ labor rights. In addition, to prevent irregularities during supervisory operations, Rodríguez instructed both sides to monitor inspections: “When an inspector arrives (…) film them; I told the inspectors the same thing: when they arrive to carry out an inspection, take out your cellphone and film them too. That way, both sides will have evidence of any issue.”