Casinos? Don't bet on them.

Mexico's Congress is reviewing a proposal to legalize casinos, a controversial topic that has the potential to add millions of dollars to state and federal government coffers and rake in more visitors, but would be sure to anger more than a few people.

Congress is currently studying a proposal that would modify the country's Gaming Law (Ley de Juegos y Sorteos) in order to legalize the activity. According to Tourism Secretary Leticia Navarro, if the proposal is passed, a special committee would be established to oversee the nascent casino industry, comprised of representatives from federal and state governments as well as citizen representation: The committee would ensure transparency in all aspects of the casino business, including issuing permits, the sources of funding for the projects and where the money goes. Local municipalities would have the final say as to whether they would allow casinos in their territory, she added.

Navarro herself expressed approval for the idea, "as long as the industry is properly controlled and supervised;" she told local press.

According to the National Confederation of Chambers of Commerce, casinos have the potential to generate 154,938 jobs in their first year of operation. And the Mexico City daily Reforma's Department of Analysis estimates first year net revenues for a casino industry to be a whopping US$1.34 billion. Such figures have prompted many supporters to claim that casinos would be the shot in the arm that Mexico's tourism industry needs to bring in the projected US$9 billion-a-year revenues and attract more and wealthier tourists. But even Navarro played down this hype, saying casinos would be just one more tourist attraction, and far from "the salvation" of the industry.

Mexican Tourism Promotion Board spokesperson Joaquin Sepulveda echoes Navarro's comments: "Casinos are certainly not a panacea for Mexico's tourism economy, they'd be just one more aspect," he says.

"I think wherever casinos have been built in the past they have provided another attraction for tourists-and locals-and are money earners and a source of employment. But the whole process of bringing in casinos must be transparent, and properly managed and supervised, otherwise they can be a source of problems," he cautions.

Navarro maintains that Congress will have the final word on whether casinos are approved. At present it is unclear which way it will jump when the issue is finally voted on. But until the die is cast, many tourism and hotel investors will have their fingers crossed.