Mexico is the second-largest Spanish-speaking market in the world and one of the iGaming markets with the greatest growth potential in Latin America. With 130 million inhabitants, high smartphone penetration and a deep-rooted gambling culture, the country offers an enormous opportunity. The challenge lies in its regulatory framework, inherited from a 1947 law that has been adapted to online gambling through remote transmission permits.
Mexico regulates gambling under the Federal Law on Games and Raffles of 1947, administered by the Ministry of the Interior (SEGOB) through the General Directorate of Games and Raffles (DGJS). This law, designed for land-based gambling, has been adapted to the digital environment through "remote transmission permits" that allow physical licence holders to operate online.
The Mexican market has unique attractions: Liga MX is one of the world's most-watched football leagues, passion for baseball and boxing generates specific niches, and the online casino market is growing strongly. Preferred payment methods include OXXO (cash payment at convenience stores), SPEI (bank transfer), cards and wallets like Mercado Pago.
The main challenge is the lack of specific online gambling legislation. This creates legal ambiguity requiring a robust legal strategy. Some operators hold their own permits; others operate under agreements with existing permit holders (B2B model). The regulatory landscape may evolve in coming years.
Opportunities: Enormous growing market, LATAM's second-largest economy, strong sports passion, growing digital penetration, and the ability to operate via B2B model using third-party permits as a fast market entry route.
Challenges: Inherited and ambiguous regulatory framework, slow and bureaucratic permit process, 30% IEPS on winnings, fragmented payments market and need for deep local adaptation (language, content, local promoters).
Online gambling operates under permits from the Federal Law on Games and Raffles, regulated by SEGOB through DGJS. Physical permits can be extended to cover online operations through a remote transmission permit. Mexico has no specific online gambling law.
Online gambling is subject to IEPS at 30% on operator winnings, plus corporate income tax (ISR). The tax structure is more complex than in Colombia or Spain due to the inherited regulatory framework.
Yes: 130 million inhabitants, high smartphone penetration, broad middle class and strong sports following. The market grows at over 20% annually. The complexity lies in the regulatory structure, which requires a well-designed legal strategy.
We help you navigate Mexican regulation and design the most efficient entry strategy.