Officially referred to as the United Mexican States, Mexico is a country located in the southern part of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatemala, Belize, and the Caribbean Sea; and to the east by the Gulf of Mexico.
Online gambling is legal in Mexico, but only operators partnering with licensed land-based venues can offer these services. All licenses are issued by the Ministry of the Interior (SEGOB) through its Gambling and Raffles Bureau. While offshore sites continue to attract Mexican players, licensed partnerships are the only legitimate route to operate locally.
The Mexican government is currently working on a new Federal Gaming and Lottery Law, expected to reach Congress in 2026. The reform aims to replace the outdated 1947 law and introduce clear rules for online gambling, player protection, and advertising.
Mexico remains classified by the U.S. State Department as a jurisdiction of primary concern for money laundering, although compliance checks and tax controls have improved over the past two years.
For that reason, special attention needs to be paid while selecting an online casino that accepts Mexican players. First of all, a player needs to double-check if this country is on the list of restricted, and then proceed with the registration, depositing, and eventually withdrawal.
Regulations in Land-Based Industry
The Betting and Raffles Law of 1947 banned casinos and gaming throughout Mexico. However, some amendments were made to this Law, which made it possible for local punters to place wagers on sports betting starting in 2005. These modifications enabled SEGOB to grant gaming licenses, as determined by the Mexican Supreme Court.
In 2010, this body gave Class III slot machines green light. Before they were permitted, punters could only play on Class II electronic-based bingo slot devices. Interestingly, numbers were drawn electronically, not symbols.
In November 2023, a presidential decree banned slot machines nationwide, though existing licenses remained valid for up to 15 years. The following year, a Federal Judge declared the ban unconstitutional, restoring permission for slot and table games.
Speaking of one-armed bandits, slot venues and bingo halls are not permitted to offer table games. Sports betting is legal since 2005, but there’s only one large-scale racetrack in the country.
As of 2025, Mexico counts more than 400 land-based venues across the country, with major clusters in Nuevo León, Veracruz, Jalisco, and Mexico City.
Is it Legal to Gamble Online in Mexico?
Online gambling became legal in 2004, when the Federal Games and Draws Law was amended to include remote betting. Worth noting is that only land-based operators have been allowed to offer their services in this part of the world. A number of foreign operators have joined forces with local suppliers to be able to offer their services legally. Operators must hold or partner with a land-based license issued by SEGOB. Currently, there are 38 active license holders and over 120 licensed iGaming platforms in the country.
In 2025, SEGOB began drafting a new Federal Gaming and Lottery Law, which could introduce a clearer framework for online casinos, tax adjustments, and responsible gambling rules.
As in numerous other countries where regulations and supervision of the industry are not too tight, offshore companies continue to target domestic customers. They allow players from Mexico to register, deposit, play, claim bonuses and withdraw winnings, without being blocked by some local body or institution in charge of the sector.
Moreover, in 2018, the Lottery presented the official launch of a number of new sales channels via electronic platforms. The announcement came from both The Lotería Nacional para la Asistencia Pública (LOTENAL) and La Pronósticos para la Asistencia Pública (Pronósticos), as they intended to enlarge the assortment of products offered via Internet. Both LOTENAL and Pronósticos continue to expand their digital presence, with electronic ticket sales now fully integrated through the “Prevenlot” and “Pronósticos en Línea” platforms.
Did you know that the Mexican government recognizes 68 national languages, out of which 63 are native languages? Quite an impressive fact.
As the vast majority of residents speak Spanish, domestic players are interested in casinos that have Spanish optimization. Ideally, the customer support team also hosts agents fluent in this language, which makes communication and navigation significantly smoother.
That’s one of the factors players take into account when choosing a suitable online casino for themselves. Aside from taking a look at games assortment, payment options, and policy, consumers should also take time to analyze Terms and Conditions.
Regulatory Institutions and Taxes
The regulation of gambling in Mexico falls under the responsibility of the Secretaría de Gobernación (SEGOB), specifically through its Gambling and Raffles Bureau (Dirección General de Juegos y Sorteos). This body manages licensing, compliance, and supervision across both land-based and online gaming sectors. Licenses are granted exclusively to Mexican commercial entities for up to 25 years, with the option of renewal for an additional 15 years. To enter the market, most international brands partner with existing Mexican license holders that already meet the local compliance and infrastructure requirements.
Taxation of gambling activities is primarily governed by the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios – IEPS), which applies to both land-based and remote gaming operations. For years, the effective rate on gross gaming revenue (GGR) stood at 30%, with additional state or municipal taxes that vary by region. However, under the 2026 Economic Package, the federal government has proposed a major increase, raising the IEPS rate on gambling to 50% of GGR. This change, championed by President Claudia Sheinbaum’s administration, forms part of a broader fiscal reform targeting high-risk industries. The reform has passed the Chamber of Deputies and now awaits Senate approval, with implementation expected in 2026.
In addition to IEPS, operators are also subject to corporate income tax (Impuesto sobre la Renta) and various regulatory and local fees. Offshore companies providing gambling services to Mexican players without local tax residence are also covered under the 16% Digital Services Tax, introduced to ensure fair competition with domestic operators. While the industry continues to operate under the 1947 Federal Games and Draws Law, SEGOB is currently working on a modernized federal gaming framework aimed at simplifying licensing, aligning digital oversight, and clarifying taxation. Until the reform takes effect, operators must navigate a complex but stable regime that balances long-standing regulation with an evolving fiscal landscape.
Player Protection and Responsible Gambling
While it is true that the country is struggling with money laundering and a high rate of crime, it is still putting certain efforts to protect punters interested in gambling online- at least theoretically. Unfortunately, not all of those had a positive outcome.
In 2012, SEGOB announced its intention to collaborate with two of the most powerful Mexican gaming associations, as well as with the Association of Mexican Banks. The main idea was to identify, control and supervise sites targeting the local market from offshore. Also, it would block payment transactions with offshore companies.
The ultimate goal is to restrict all services offered by foreign gambling operators to Mexican players and create a database of unlicensed providers targeting the local clientele. However, this initiative was never brought to life.
A year later, after countless reports on corruption, the congressional committee was charged with investigating how certificates had been granted. Comprised of 11 deputies, the committee came up with new law, whose purpose was to regulate the gaming industry in the country, safeguard the rights of players and make the licensing process more transparent.
One of the ideas was to ban mini-casinos which displayed around 30 machines, as well as “umbrella” licenses, which allowed suppliers to host a number of slot parlors and sports betting shops under a single license. Just like the previous initiative, this one never made it through the day.
In recent years, Mexico has taken cautious steps toward improving player protection. SEGOB now requires licensed operators to display responsible gambling messages and provide self-exclusion tools. The upcoming reform bill also proposes clear age verification rules, data protection standards, and the establishment of a national self-exclusion registry for problem gamblers.
Despite these advances, enforcement remains inconsistent, and many offshore sites still operate without oversight or consumer protection.
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