Tijuana Ready to Take On Las Vegas : Will Take U.S. Bettors’ Wagers on Major Sports Events

Mexican officials have authorized Caliente Race Track to start taking bets on foreign sports events, such as U.S. major league baseball and professional football, it was announced Friday.

When sports book wagering begins next month, bets may be placed at the track and at seven other Baja California sites in Tijuana, Rosarito, Ensenada, Tecate and Mexicali, said Jorge Hank Rhon, the track owner. He said that three new sites will be available soon at the Jai Lai Palace in Tijuana, in Mexicali and in Algodones, a Mexican border town west of Yuma, Ariz. Eventually, he said, Caliente officials hope to have 348 monitors located at 11 race books, sites where bets can be placed.

Sports betting is expected to attract about $60 million in bets during the first year, Hank said. Much of the money is expected to come from Southern California gamblers, who will have an alternative to betting in Nevada, the only U.S. 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. Hank said it will compete head-to-head with Las Vegas for Southern California gamblers.

Although bets will be taken primarily on U.S. 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 added.

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

He said that U.S. sports bettors will be attracted to Tijuana because federal taxes will not be automatically 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 their (betting operations) are bigger and prettier. 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,” Hank said.

U.S. Currency

At a press conference, Hank said all betting will be done with U.S. currency, with $2 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 within Baja California, Hank said.

Odds and point spreads for the operation will be purchased from odds makers in Las Vegas, Hank said.