International edition
September 27, 2020

Francois Marchand, Director of Markets and Entertainment, Communication and Information Sector of KPMG Mexico

“It is a good time to take up again the discussion on online gaming in Mexico”

(Mexico, exclusive Yogonet.com).- Consulting company KPMG Mexico published this year the report “Online games of chance, A risky or a secure bet?”, in which he comments about the need to regulate the activity. In an interview to Yogonet.com, Francois Marchand, Director of Markets and Entertainment, Communication and Information Sector of the company, indicated that European countries are the most solid with regards to online gaming.

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hich are the main conclusions of the online gaming report? How much would the state collect in case of legalizing the activity?
There we estimate that, in case of regulating the activity, the Mexican state would collect around us$ 4,300,000. This potential number arises from an estimation with regards to traditional gaming in Mexico and how does Internet gaming has an impact in the PIB of the countries that have already regulated it. With this study, from KPMG we try to bring an element to study the possibility of establishing this business, both by the State and the businessmen.

In your opinion, why hasn’t the Mexican government taken the decision to regulate this segment yet?
I think there are two variables. On one hand, it is not easy to understand, regulate and applicate online gaming, even in counties such as United States, for example. Besides, it must also fit in the priorities. From my point of view, the Mexican government first tried to boost the part of the traditional casinos, and then it will start seeing other levels of the games of chance industry. Another point is that the Internet infrastructure and its penetration in the country has advanced slowly, although it is true that online business target to a global market and not only to their countries of origin. In the 2004 legislation, it was also considered the online part, although no advance was made. I consider that now it is a good moment to take up again the discussion on online gaming.

What country do you consider as a model to follow with regards to the way in which online gaming is being treated?
France has made good progress, but there is not really a research that may bring an absolute ranking. What I can say is that European countries have shown more solid with regards to this issue. Asian people have started to follow this way, and with regards to South America, Chile is the country with more gaming development in traditional casinos, and it is starting to study the online world. Of course, we must also mention the US. It is a relatively new issue. It is very premature to say if there is a very successful case. It is important to remark that there is no evidence that it generates something negative. That’s why it is important that a country like Meico take cards on the issue, not that it is starting to emerge. 
A 25% of online betting comes from the United Status, which does not currently have legislation, although it is studying it. That percentage is addressed mainly to France and England. The Mexican government could study that opportunity, too.

Should brick-and-mortar casinos consider online gaming as a competence or as a complement?
They may see it in both ways. There are companies such as Bwin that are only online, and they could present themselves as a competence for brick-and-mortar casinos. The online activity could be a complement in certain areas that do not hinder their operation, besides, this way; they would offset a bit the 100% online competence.

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