Caliente to Take Bets on Sports : Mexico Authorizes Bookmaking on U.S. Events

Mexican government officials have authorized Caliente Race Track to accept bets on foreign sports events, such as major league American baseball and professional football, it was announced here Friday.

Sports betting will begin late next month and is expected to attract about $60 million in bets during the first year, said Jorge Hank Rhon, race track owner. Much of that money is expected to come from Southern California gamblers, who will have an alternative to betting in Nevada, the only state where bookmaking is legal.

The betting operation, which was approved by government officials last month after four years of negotiations, will be the first of its kind in Mexico, and Hank said it will compete head-to-head with Las Vegas for Southern California gamblers.

Although bets will be taken primarily on American sports events, including collegiate sports, Hank said some events in other countries will also be covered. Wagers will not be taken on sports events in Mexico, unless they are international events such as the World Cup, he said.

150,000 Gamblers a Week Expected

Hank estimated that, once the race track begins taking bets, it will attract about 150,000 gamblers a week, 80% of them from the United States.

He said that American sports bettors will be attracted to Tijuana because federal taxes will not automatically be deducted from their winnings, as is the case in Las Vegas.

“I’m trying to attract everybody I can. . . . The only difference between Las Vegas and us is that they’re bigger and prettier,” Hank said. “And, in the U.S., you have to pay the IRS. Here, I pay your taxes to my government. Whatever you do with your money is up to you.”

He said that Mexican law requires only a 2% tax on payoffs.

Betting Will Be in U.S. Currency

During a press conference held at the race track, Hank said all betting will be done with U. S. currency, with $2 as the minimum bet. Bettors will be able to establish minimum credit lines of $100--charging them to credit cards, if desired--which will be governed by a secret code number. Telephone bets will only be accepted from Baja California, Hank said.

Odds and point spreads for the operation will be purchased from odds makers in Las Vegas, Hank said. Eventually, Caliente officials hope to have 348 monitors at 11 “race books,” sites where bets can be placed. There are now eight sites in Tijuana, Rosarito, Ensenada, Tecate and Mexicali. Hank said that three new sites will be available soon--at the Jai Alai Palace in Tijuana, in Mexicali and in Algodones, a Mexican border town west of Yuma, Ariz.

Equipment for the bookmaking operation is being supplied by Auto Tote, a Delaware firm. Hank said the company will install a computerized system that will enable Caliente officials to establish odds that will be adjusted based on the wagering. Bets will be taken up to two minutes before the event, he said.

When asked if he had cleared his venture with Las Vegas gambling officials, who are separate from independent odds makers, Hank said: “No. I don’t know if I wanted to.”

Mexican President Credited

He credited approval for the betting operation to the administration of Mexican President Carlos Salinas de Gortari. The previous administration “didn’t think we were ready for it,” Hank said.

Approval of the betting parlors prompted new questions about the possibility that the government will also approve casinos on the scenic Baja California coast. However, Hank discounted that possibility, saying casinos are still officially frowned upon in Mexico.

Hank, who has extensive business interests in Tijuana, said bookmaking will be beneficial to financially strapped Mexico and will create jobs in Baja. “We’re trying to handle this as money coming into the country,” he said.