Mexico
One of the most vibrant gambling markets in Latin America, Mexico has a huge potential in the online casino sector. Second only to Brazil in terms of population, the country represents a huge pool of real-money players, with young and tech-savvy individuals making up the largest part.
Despite the relatively early adoption of its first gambling legislation back in the mid twentieth century, Mexico today cannot brag of a complete and consistent regulatory framework, like some other gambling regulators around the world. While the latter has definitely advanced over the years, certain gaps still exist and they are mainly related to the online gaming industry.
The inadequacy of the laws creates an enabling environment for the domination of offshore betting platforms, however, more and more operators are interested in obtaining a local license, which is granted by The Ministry of Interior (SEGOB) through its Gambling and Raffles Bureau (Dirección General de Juegos y Sorteos).
Sports bettors account for nearly half of all active players who place wagers via the Internet, which is not surprising given the immense passion of this American nation for soccer, boxing, baseball, and, of course, football. However, casino players are not far behind, with their share in the total number of active real-money bettors growing steadily year by year.
The History of Gambling in Mexico
Mexico is one of the countries that boasts a truly rich history of gambling, rooted in ancient times. The Aztecs, Maya, and Olmec played games with stakes long before the arrival of the Spanish at the end of the 15th century.
The Mesoamerican Ballgame, which by the way, is still played in the modern days and even has its own tournament in Teotihuacan, MX, was just one example of a long-standing and large-scale ballgame tradition in the region.
But Patolli, an ancient board game, without a doubt, was the one with the heaviest focus on gambling. Players bet their personal belongings, which could be anything from precious gems to food, letting the winner take it all home. Each participant had to have the same number of items, usually six, and they were carefully inspected by other players before the start of the game.
Well, after a sort of lyrical digression about early forms of gambling, let’s turn directly to something, which is very widespread in modern days – a lottery. Mexico’s Royal General Lottery was founded in 1771 when the country probably followed the example of colonial America where starting from 1744, lotteries played a major role in financing roads, libraries, churches, and even universities.
The first rise of casinos took place in the 1920s when the U.S. was prohibiting gambling. To take advantage of the situation, Mexico legalized major forms and tourists flocked to the country’s French-style venues. The heyday, however, quickly came to an end due to the ban introduced by President Lazaro Cardenas in 1935.
Things changed in 1947 when President Miguel Alemán Valdé enacted the Federal Games and Draws Law (Reglamento de la Ley Federal de Juegos y Sorteos, RLFJS). The Gambling and Raffles Bureau was created, laying the foundation for regulated gaming activities and a uniformized approach to requirements across different verticals.
Legality of Online Gambling in Mexico
Online gambling became part of the legislation only in 2004 when the Federal Gaming and Raffles Law (RLFJS) from 1947 was amended for the first time after its introduction. From that point, all web-based operators had to obtain a license from the government.
Three years later, the Law was revised to include online sports betting while in 2012, the Mexican government introduced two IT-related gambling standards: NMX-I-287-1-NYCE-2012 and NMX-I-287-2-NYCE-2012, for providers and operators respectively. Both standards were designed to facilitate complete fairness and safeness of gambling platforms that offer their services online.
The year 2014 saw another regulatory milestone with a fundamental revision of the RLFJS from Mexico’s lower legislative chamber. The Senate, however, did not hurry to give the green light to the regulation, requesting an all-encompassing and more detailed analysis. Another attempt to set up more precise regulations for the entire gambling industry was made in 2021 when the National Regeneration Movement published draft guidelines. But the latter never passed and, as things stand no progress is expected in the foreseeable future.
On Nov. 16, 2023, Mexico’s President Andrés Manuel López Obrador made quite a splash by amending the RLFJS and, among other changes, introducing a ban on slot machines. The licenses to operate slots granted to casinos before the decree took effect remain valid for a maximum period of 15 years.
Many gambling companies and casino operators contested this decision, filing about five dozen lawsuits. The next year, Federal Judge María Isabel Bernal declared the government’s ban on slot machines unconstitutional. At the same time, she also ruled out that roulette and dice games should be permitted.
To briefly describe the current situation, Mexican citizens are welcome to gamble in online casinos with local licenses but they also can access and join offshore websites as the state does not block them. The platforms that do not hold any license, however, are at risk of being blocked, and, if not so, they anyway should be approached by players with caution.
Gambling Licenses Available in Mexico
As already mentioned, licenses for any land-based and online gambling activities are issued by The Ministry of Interior (SEGOB) through its Gambling and Raffles Bureau (Dirección General de Juegos y Sorteos or DGJS). B2B providers are the only exception to the current licensing requirements.
The licenses are granted to Mexican commercial entities exclusively for a maximum period of 25 years and can be extended for an additional 15 years at the customer’s request. There is no limit to the number of licenses that can be issued within a year or any other time.
It is important to understand that to apply for an online gambling license, operators should partner with one of the land-based casinos holding valid licenses from the DGJS. Exactly that way many internationally famous brands, including Rush Street Interactive, made their entry into the Mexican market some years ago, bringing along some top-tier studios.
Four different types of licenses can be obtained in Mexico:
- Horse and greyhound racetracks, with contextual betting.
- Remote betting centers (sportsbooks) – this category encompasses any kind of venue that offers remote sports betting.
- Betting centers or “rooms for drawing numbers”/ ”poker rooms” – brick-and-mortar casinos fall under this category, which covers live gaming, slot machines, and online gambling activities.
- Fronton arenas for jai alai.
Player Protection
Even though Mexican gambling jurisdiction is yet not as strong as the UKGC or MGA, the Federal Gaming and Raffles Law (RLFJS) together with its amendments has created a solid base for the protection of players.
While there is still a place for improvement and taking the level of protection mechanisms to new heights, here are the key points to ensure the safeguarding of casino customers:
- Age restrictions – minors are not allowed to participate in any gambling activities, both online and offline.
- Complaints and redress mechanisms - players can complain directly to the SEGOB when they have such problems as unpaid prizes, unfair gaming practices, or similar issues.
- Gambling advertising - all gambling-related advertisements are subject to SEGOB’s prior approval while licensed operators are not allowed to explicitly promote bet types. In addition to that, casinos and sportsbooks are required to make sure that their promotional content is accurate and unambiguous to avoid any misunderstandings.
- Responsible gaming - all communication with players, from promotional campaigns to general industry messages, should be created to highlight the protection of minors and other vulnerable categories, as well as in line with the principles of responsible gambling.
Games Offered by Online Casinos Licensed in Mexico
Mexican players are spoiled for choice when it comes to popular casino games, being able to enjoy the industry’s best online slots and live deal tables. Indeed, over recent years, many top-tier software providers, including NetEnt and Relax, entered into strategic partnerships with platforms holding local licenses.
As usual, the selection of titles may vary from one website to another, but, generally, everyone can find a game in accordance with their taste and preferences. From Evolution, Playtech, and Pragmatic Play to a wide variety of up-and-coming and boutique studios – no wonder, players have no problem finding their perfect fit.
Besides virtual one-armed bandits and live dealer entertainment, online casinos licensed in Mexico also offer an excellent assortment of RNG roulette, blackjack, poker, and baccarat, as well as fast-paced crash and instant win games. Naturally, the love of Mexicans for lottery and bingo has found its reflection in the online space too, represented by a decent choice of video bingo and immersive lottery-style games.
Mexico is a challenging yet very attractive online gambling market, which offers incredible opportunities to operators and players alike. While industry experts anticipate more comprehensive regulations and a higher level of market transparency, casino players can enjoy the ultimate gaming experience already today.
Further Reading:
- Top Online Casinos for Mexico
- New Online Casinos for Players in Mexico
- Mexico Pesos Casinos
- No Deposit Bonuses for Players in Mexico
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