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Online Gaming in Mexico

Authored by Ramparts (Last Reviewed June 2024)



Mexico Online Gaming Overview

Partially Regulated
Betting games, drawings and games of chance generally are subject mainly to the Federal Law on Games and Drawings (the “Gambling Law”) and the Regulations to the Federal Law on Games and Drawings (the “Gambling Regulations”).

Only Mexican entities are allowed to apply for gambling licences. Gambling licences permit operators to offer both land-based and online operations. Foreign companies can legally offer their products by associating with a local licence holder, whether as an authorised operator or as a supplier. However, local operators now face a new presidential decree that appears to prohibit this practice, although only after existing licenses expire.

The Ministry of Interior (Spanish acronym “SEGOB”) is the authority in charge of the regulation, authorisation, oversight and control of betting games and drawings in Mexico. Therefore, any game or activity that involves betting, whatever form it takes, shall require authorisation by SEGOB.

Market Size
Nonetheless, currently SEGOB has authorised the installation and operation of 380 legal land-based casinos nationwide (as of December 2023), in which participants can legally play slots, sports betting and traditional casino games such as poker, roulette and blackjack. Online gambling is also authorised in the form of casino games, video slots, bingo, and sports betting. According to the Federal Income Law for 2023, the Mexican State is planning to receive in taxation approximately USD 211,864,432.03 during 2023 for activities related to betting games and drawings, which represents an increase of 25% over the estimation for last year.

In March 2024, Association of Permit Holders, Operators and Suppliers of the Entertainment and Gambling Industry in Mexico ( AIEJA ) reported that the average daily spending per person with the licensed operators, increased 50 percent over the last seven years going from MX$320 to MX$ 480

It was shown that Mexicans over 40 years of age are the best clientele, with two thirds playing in physical establishments.

It is estimated that last year 5 million people went to casino rooms throughout the country, at least once a year. On average, people who attend spend two hours and 45 minutes in the casinos, especially in gaming machines, which has a participation of approximately 80% of the total bets , according to a AIEJA study.

Meanwhile, 12 percent of bets are made on table games such as baccarat and blackjack, in addition to roulette, and the rest has to do with live sports betting or bingo. In the case of virtual casinos, most of the bets are on sports,

The increase in visitors and money spent occurs despite the fact that there has not been an increase in the gaming rooms operating in the country. In 2005, the Ministry of the Interior ( Segob ) gave permits to the operation of 872 establishments by 38 permit holders, but only 425 are open in 29 states of the country. This means that there are 447 rooms that cannot be opened due to lack of permits and local regulations.

To open a casino you need a land use permit, among other municipal procedures, and they are not being granted, despite having the approval of the Segob. To date, Baja California stands out for having the largest number of casinos in operation, with 44, and is followed by Mexico City, with 35; Nuevo León, 33; Sonora, 32; Jalisco, 29; State of Mexico, 28, and Veracruz, with 21.

AIEJA estimates that the illegal online betting market is worth around USD450m, where around 60% of the betting sites are illegal

There are currently about 80 companies that have permission granted by the Ministry of the Interior (Segob) to place bets over the internet. However, according to the AIEJA representative, it is unknown exactly how many sites lack authorization from Segob.

Competitive Landscape
Mexico is a growing market. In the past couple of years, many of the world’s most experienced operators have launched their products in the country.

Betting games and financial activities are considered vulnerable activities according to the Federal Law to Prevent and Identify Operations with Illicit Resources (the “AML Law”), thus payment methods are subjected to different control provisions. The use of crypto currencies is not forbidden, yet it is not supported by the Government.

Top 5 Key Attractions and Challenges

  1. Once licensed, there are no banned games
  2. The gaming legislation is federal, therefore licences are valid nationwide
  3. Major soccer and football fans
  4. Beautiful cities and wonderful weather
  5. Internet penetration in constant growth


  1. Outdated legal framework, further impacted by new decree effective on 17/11/23 which bans all new slot games (existing ones can continue until their licence expires) and limits operating permits
  2. Poor public perception of the gaming industry
  3. Lack of public policies in connection with gaming
  4. Political interests
  5. Insecurity regarding organised crime

Licensing & Regulation

Onerous regime / Unregulated (Restricted)

Mexico Online Gaming Licensing & Regulation

Licence Triggers
According to the Gambling Law and the Gambling Regulations, the presence of a bet is the trigger for licensing.

Array/ Type of licence needed
Online gambling is legal, yet not deeply regulated. The Gambling Law and Gambling Regulations are focused on land-based operations and thus online gambling is very much connected to land-based. However, the current...

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Light touch

Mexico Online Gaming Enforcement

Regulating bodies
SEGOB is entitled to sanction all forms of illegal gaming and gambling in Mexico; whether the operator is licensed abroad. Moreover, it is important to note that even though it is not a common practice, Mexican law can be enforced against operators extra-territorially.

Supervision by Regulator
These sanctions are applicable for every activity governed by the...

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Mexico Online Gaming Marketing

Only licence holders and authorised operators are allowed to advertise their products, observing the most basic guidelines such as restrictions on advertising targeting minors, the promotion of responsible gaming, the display of the relevant operator’s gambling licence number, and general fair advertisement practices.

According to the Gambling Regulations licence holders may not expressly promote the authorised bets they can carry...

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Mexico Online Gaming Fees

Application fees
Set-up and administrative costs for incorporating and maintaining a Mexican entity are high, and it may vary depending on the type of business to be incorporated and its size. These costs can go up to EUR 45,000, between incorporation, notary fees, legal fees and administration fees.

On the other hand, there is a gambling licence fee, determined...

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Mexico Online Gaming Taxes

In Mexico, the fiscal and the gaming legislation do not make any distinction between taxes applicable to land-based/retail, online and sports betting, therefore all gaming taxes are applicable in general for any gambling carried out within the territory. There are also federal and state taxes. The following are, in general, the taxes applicable to gambling in Mexico:

Income Tax withholding...

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Future Outlook


Mexico Online Gaming Future Outlook

The current legal framework is insufficient and would benefit from being updated. To this end, SEGOB has already included in its development program an amendment to the Gambling Law and the Gambling Regulations which considers the technological advances and social changes which have taken place since the current regulatory framework came into force. Even though SEGOB has not provided a...

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