Is Gambling Legal in Mexico?

Mexico is one of the most active iGaming markets in Latin America. It combines strong mobile use, a deep local betting culture, and a clear appetite for online casinos and sports betting. The regulatory setup is strict, but operators can enter the market by partnering with land-based licence holders – a model that is already proven to work.

With the market expected to reach EUR 1.73 billion by 2030, the opportunity is real. But success here means more than just being present – it takes cultural relevance, compliance, and a long-term mindset.

Online Gambling in Mexico

Regulatory Authority	General Directorate of Games and Lotteries (DGJS)
Key legislation	Regulations of the Federal Law on Games and Lotteries (2004)
Allowed activities	Remote betting (online) is allowed only for Mexican-based operators with a land-based licence and specific authorisation; no standalone online-only licences exist.
Prohibited activities	Running unlicensed online platforms
Taxation and fees	Gambling operators in Mexico are subject to multiple layers of taxation. These include a federal licensing fee of 1%–2% on income from bets, a 30% income tax (ISR) on net annual earnings, and a 30% Special Production and Services Tax (IEPS) on bets effectively collected from players. In addition, local taxes may apply depending on the state or municipality in which the operator is based.
Licence validity / duration	In Mexico, licence duration depends on holding a land-based operation – online licences are only granted to existing offline casino licensees.
Benefits of the market	Thriving digital landscape With over 110 million internet users and more mobiles than people, Mexico is mobile-first, and demand for online betting keeps climbing. Cultural relevance that drives engagement From Liga MX and lucha libre to Día de Muertos and the NFL, local themes give operators real ways to connect and keep players engaged.
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Land-Based Gambling in Mexico

Key legislation	Federal Law on Games and Lotteries (1947)
Allowed activities	Among others: land-based casinos betting shops and race books draw-based games slot machines in authorised venues
Prohibited activities	Among others: offering slot machines without authorisation; no new licenses allowed as of November 2023 hosting public games with stakes outside the licensed system
Taxation	Gambling operators in Mexico are subject to multiple layers of taxation. These include a federal licensing fee of 1%–2% on income from bets, a 30% income tax (ISR) on net annual earnings, and a 30% Special Production and Services Tax (IEPS) on bets effectively collected from players. In addition, local taxes may apply depending on the state or municipality in which the operator is based.

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RELATED ARTICLE How to Open an Online Casino in Mexico

Launching an online casino in a specific country or region requires thorough research and careful preparation. It involves understanding the country’s market dynamics and history with gambling, online gambling, and betting regulations. A good knowledge of the culture can also influence your product’s ultimate success. This article explores these key aspects in the context of the Mexican iGaming market and offers insights to help build a locally adapted and successful online gaming venture.