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.
Starting an Online Casino in Mexico – Key Considerations
Market Dynamics: Operators should consider building a sportsbook focused on Liga MX and top European football, plus baseball, NFL and local favourites, such as dog racing or wrestling (lucha libre). For casinos, offering Spanish‑language slots with Día de Muertos or Maya/Aztec themes could be beneficial. Aligning promos with specific dates like Cinco de Mayo, Independence Day, the World Cup or the Super Bowl may also boost engagement.
Legal Compliance: Entering the market requires a partnership with a Mexican-licensed casino or sportsbook holder – no new standalone online permits have been issued in years, and sub‑licensing ended in late 2023. Through that partner, you’ll submit certified tech docs (RNG, sportsbook engine, KYC/AML, etc.) to the Secretaría de Gobernación (SEGOB) and should plan for a 12–18 month licensing cycle.
Payment Methods: It's important to provide popular local payment methods in Mexico alongside standard options: integrate OXXO Pay, SPEI (and CoDi/DiMo), plus cards and e‑wallets (Neteller, Skrill, PayPal/Mercado Pago) all in MXN.
Software: Mobile-friendly platforms are a must to leverage the smartphone usage boom in the country.
Technological Infrastructure: To ease your launch, it is advisable to choose a reliable Mexico-compliant tech provider that offers solidity, pre‑vetted compliance modules, local legal support, and payment/CDN integrations.
Why Mexico?
Mexico’s online casino and betting market is among the fastest-growing in Latin America, with an estimated annual value of USD 1.96 billion by 2030. The increasing internet usage has triggered rapid growth in online play and remains an important gateway for Mexican users. The rise of smartphone technology has further increased the number of online casino players in Mexico, making mobile platforms a key access point for a significant portion of the population: internet penetration now stands at 83.3% (110 million users), and the country counts 127 million active mobile phones
Mexican players have strong preferences for sports betting, especially football, horse racing, greyhound racing, and Jai Alai. Land-based gambling is closely tied to the country’s tourism industry, with many entertainment venues located near the US border.
Traditional games like lotteries remain fully legal and widely popular. Bullfighting and cockfighting, while culturally significant and permitted at the federal level, are subject to varying local laws: some states allow them openly, others impose restrictions or have banned such activities altogether due to animal welfare concerns.
With its love for games and growing digital habits, Mexico has indeed become fertile ground for online casino and sportsbook ventures. Yet, every rose has its thorn, and Mexico is no exception: regulations are always evolving, requiring vigilant monitoring. Operators must adhere strictly to advertising rules, responsible gaming, and data storage regulations if they want to stay compliant and successful in the market.
Is Online Gambling Legal in Mexico?
Yes, but with restrictions. Online gambling in Mexico is legal exclusively for operators who already hold a valid land-based casino licence issued by the Secretaría de Gobernación (SEGOB). In practice, this framework is virtually closed to new entrants: no new land-based casino licences have been issued for many years, and there is no established process for newcomers to secure one independently.
As a result, the only viable route for foreign or new operators is to partner with, invest in, or acquire a stake in an existing licence holder – typically, a well-established Mexican operator with proven local presence and compliance history.
The Secretaría de Gobernación regulates and oversees all compliance. Any attempt to access the market without a robust local partner or without meeting the full spectrum of legal requirements is unlikely to succeed and carries significant legal risk.
Online Casino Licensing in Mexico
Mexico's gambling laws have historically aimed to restrict gambling activities since the Mexican Revolution. Influenced by the Catholic Church and liberation movements, President Lázaro Cárdenas implemented a ban on most forms of gambling in 1948. However, certain activities like dominoes, finger games, and occasional cockfights remained largely unrestricted. Sports betting was also relatively prohibited until high demand led to its legalisation.
The advent of internet technology in the early 2000s prompted the government to re‑evaluate its stance. SEGOB began issuing more licences in a few years than in the previous half‑century.
In November 2023, significant reforms to the Regulation of the Federal Law of Gaming and Sweepstakes were enacted, including a ban on slot machines in all casinos and gambling establishments. Once a licence expires (typically after 15 years), the operator must cease operations unless a new licence is granted. These regulatory changes are expected to impact the online gambling sector very positively.
Today, any local operator must hold a land‑based permit before applying for an online extension.
While foreign companies without Mexican licences are not formally authorised to operate, they are not actively blocked from offering services to Mexican players, as long as they partner with a local, already licensed, brick-and-mortar iGaming business.
| 1. Partner Locally: | foreign operators must collaborate with or acquire a local company already holding a land-based casino permit. |
| 2. Apply for Online Extension: | submit an online gambling permit extension through your local partner to the Ministry of the Interior (SEGOB). Permit fees: 1% or 2% of gross gaming revenue, depending on permit conditions, paid to SEGOB. |
| 3. Complete a Technical Audit: | Certified labs such as GLI or BMM must audit your technical systems, including RNG, sportsbook integrations, and cybersecurity measures. |
| 4. Await Approval: | SEGOB typically grants approval within 3 to 6 months. |
How to Obtain Your iGaming Licence in Mexico
- Partner Locally: foreign operators must collaborate with or acquire a local company already holding a land-based casino permit.
- Apply for Online Extension: submit an online gambling permit extension through your local partner to the Ministry of the Interior (SEGOB). Permit fees: 1% or 2% of gross gaming revenue, depending on permit conditions, paid to SEGOB.
- Complete a Technical Audit: Certified labs such as GLI or BMM must audit your technical systems, including RNG, sportsbook integrations, and cybersecurity measures.
- Await Approval: SEGOB typically grants approval within 3 to 6 months.
Payment Methods & Taxation
Mexico has the reputation of being the second-largest e-commerce market in Latin America. In 2024, its e-commerce market was valued at MXN 789.7 billion (approximately USD 39.3 billion), marking a growth of over 20% compared to the previous year.Most Mexicans prefer using their smartphones to make payments, so integrating the most popular payment systems is essential to meeting players’ expectations.
Popular Payment Systems in Mexico
Widely used systems such as Neteller and Skrill support the Mexican Peso and are common across the broader Latin American region. Credit card usage – particularly Visa and MasterCard – is also widespread.
However, when it comes to digital payments in Mexican online casinos, it is important to note that many domestic cards do not allow cross-border transactions. In these situations, Paysafecard is proving itself as a handy alternative and gaining momentum among local players.
PayPal remains a major player in electronic payments, although it is worth noting that the company has begun withdrawing from the iGaming industry worldwide.
Cryptocurrency is also becoming an increasingly viable payment option for online casinos and sportsbooks in Mexico. With its ability to offer fast, secure, and decentralised transactions, crypto is a valuable addition to more traditional payment systems.
Local Payment Options
In Mexico, several home-grown payment solutions have become increasingly relevant, offering casinos effective ways to accommodate local preferences:
- Sistema de Pagos Electrónicos Interbancarios (SPEI): This is Mexico’s primary real-time bank transfer system managed by Banco de México. SPEI makes it easy for players to securely and instantly transfer funds directly from their bank accounts, making it particularly appealing for online casino deposits.
- Cobro Digital (CoDi): Launched by Banco de México in 2019, CoDi enables mobile payments via QR codes or NFC.
- Dinero Móvil (DiMo): Banco de México introduced this service in 2023. DiMo simplifies sending and receiving money using just a phone number, making it extremely user-friendly.
Providing local payment options such as SPEI, CoDi, and DiMo makes transactions easier and more comfortable for Mexican players. However, operators need to confirm that all the payment methods they offer fit well with their platform, meet legal requirements, and align with what their players actually need.
Key Taxes for iGaming Operators in Mexico
If you're planning to launch an online casino in Mexico, it's important to understand how taxes work and what to expect in this matter.
All operators pay 30% corporate income tax (ISR) on their net annual income, a standard across most Mexican businesses.
There is also the IEPS, a special tax on betting activity. It’s set at 30% of all wagers placed each month, which means it’s based on turnover, not profit.
However, you can ease the burden a little by deducting some of the local or regional taxes you’ve already paid, up to 20% of the total IEPS amount.
Marketing Tips for Launching an Online Casino in Mexico
All gambling (land-based and online) is regulated under the Federal Law of Games and Raffles (Ley Federal de Juegos y Sorteos) and its regulations. Only operators licensed by the government can legally advertise.
What is Prohibited?
- Advertising for unlicensed casinos (domestic or foreign) is strictly forbidden. This applies to TV, radio, websites, social media, affiliates, and influencers.
- Direct appeals to gamble (‘easy money’, ‘guaranteed win’, or targeting minors) are not allowed.
- Ads on media aimed at under-18s.
- Missing licence info: Ads without the operator’s permit number are illegal.
- Misleading ads: False claims about odds, prizes, or bonuses are prohibited by consumer protection law.
What is Allowed?
- Licensed operators may promote their brands via digital channels, affiliates, influencers, and sponsorships if they comply with all legal requirements.
- Advertising must include:
- permit number
- ‘18+’ warning
- a responsible gambling message (e.g., ‘Juega con responsabilidad’).
- Affiliate marketing and influencer promotions are allowed as long as sponsorship is clearly disclosed and the content is aimed at adults.
- Sports sponsorships (like football teams) are legal and common.
- Bonuses and promotions can be advertised, but all terms and conditions must be clear and visible.
- Social media and Google/Facebook ads are allowed, but advertisers must be certified and use age-gating.
Given the sensitive nature of Mexico’s legal framework surrounding direct gambling advertising, it is advisable to focus on a diversified approach when it comes to marketing.
Effective strategies include affiliate marketing, sponsored content, articles, online reviews, mentions in digital media outlets and niche publications.
There is growing evidence that social media performs significantly better in Latin American markets than it does in some European ones, where gambling content often struggles to gain traction. Leveraging local influencers and regional platforms can provide strong returns on engagement.
Choosing a Platform Provider
Your choice of platform provider will play a key role in implementing your marketing strategy, managing bonuses and payment systems, and optimising user experience. It is vital to select a partner who can meet your business's technical and strategic needs in the Mexican market.
Software
Make a list of your must-haves: payment integrations (think SPEI, CoDi, crypto), support for the Mexican Peso, robust player management, and tools for running bonuses or loyalty programs. If you plan to offer sports betting in addition to casino games, your platform needs a reliable sportsbook engine that can handle live odds and local leagues. In fact, sports betting accounts for about 50% of all online wagers in Mexico, with football (soccer) leading in popularity, followed by baseball and American football.
The ability to adapt to local preferences, whether through game types, payment options, or promotions, matters more than having a long checklist of generic features.
Games
Variety matters: slot games, for example, come in an array of themes and formats. Some players prefer table games, sports, or even live dealer experiences. Understanding their tastes will allow you to fine-tune your portfolio.
It’s worth noting that lottery draws and instant games of chance are also highly popular, with recent studies showing that up to a quarter of Mexican adults participate in these games. Meanwhile, casino games, including online slots and classic card games like blackjack and poker, account for a significant share of player interest.
Choose a platform that gives you access to a wide game library and lets you add new content quickly, based on what is trending or requested by your audience. Ask potential partners about their experience working in Latin America and if they have local partnerships or special deals with popular game studios.
Compliance and Security
Even though platform providers themselves don’t need a standalone B2B licence, their technology must fully support compliance with SEGOB’s requirements. This includes certified games, secure data storage, and proper KYC/AML tools.
Ultimately, operators are responsible for meeting all local requirements, but your platform partner plays a critical role in making compliance achievable and sustainable. Prioritise providers who understand the Mexican regulatory landscape, offer clear proof of certification (from recognised labs like iTech Labs or BMM), and maintain a track record of successful audits, regular security updates, and transparent compliance documentation.
Marketing
Marketing is typically the operator's responsibility. However, an advanced platform can efficiently support your efforts. Affiliate management modules, CRM systems, and built-in analytics make it easier to reach new local players and keep them coming back.
Final Thoughts
Mexico is not an ‘emerging market’ in the simplistic sense of the term. It’s a mature, culturally rich, and commercially active iGaming landscape with its own logic. While regulation continues to change, player expectations are already shaped by years of exposure to both domestic and international brands. This is a market where familiarity with local formats, content preferences, and tone of voice carries more weight than feature volume or product breadth.
Entering Mexico successfully means being able to navigate informal structures with formal discipline, building trust where regulation leaves space, and competing on cultural alignment, operational speed, and long-term sustainability.
It takes more than market knowledge to succeed in Mexico – it takes technology built for it. A platform that can adapt to local conditions, support scalable operations, and stay compliant as the landscape shifts. With over 15 years in complex iGaming environments, SOFTSWISS delivers the technological foundation operators need to launch confidently and grow sustainably in Mexico and beyond.
