How to start an online casino in Mexico in 2026: gambling industry overview

When researching how to start an online casino in Mexico, operators should be aware of the market's unique features and demands. Our experts share valuable insights into Mexico’s online gambling regulations and explain how to launch a brand efficiently.

Mexico online gambling regulations

When handling online gambling regulation in Mexico, each state manages and controls its own landscape independently. However, taxes are collected under a nationwide approach. The General Directorate of Gambling and Sweepstakes (Dirección General de Juegos y Sorteos) is responsible for issuing gambling permits that fall outside the national lottery. Let’s break this down more specifically.

Land-based gambling regulations

Mexico regulates gambling through a complex legislative framework. There are two main rulebooks that govern the industry: the Federal Gaming and Raffles Law of 1947, which prohibits all forms of gambling except for sports betting and raffle number games, and the Regulation of the Federal Gaming and Raffles Law of 2004.

While the 1947 law created a framework for Mexico’s gambling regulations, it offered little in the way of specific rules, especially for modern forms of gambling. For example, the 1947 law prohibited casino games, but decades later, lawmakers began to authorize them through interpretation. This was a key driver for the 2004 bill being introduced. A further piece of legislation — a presidential decree from 2013 — was needed to set rules of operation for gaming machines.

In 2021, the industry began to accelerate when new guidelines for operators regarding advertising, bonuses and player loyalty policies were published; but then the Mexican president signed a bill in 2023 that banned all land-based slot machines in the country. The courts later ruled this as unconstitutional, and although casinos with existing permits are allowed to continue slot operations until these expire, no new permits have been issued.

In addition, Mexico’s governmental system — a federation of 32 states — adds another layer of complexity to the regulations. States can regulate anything not explicitly covered at the federal level. Land-based casinos are subject to a complicated chain of permits and prohibitions: they were originally prohibited by the 1947 law, and although this remains valid and is still used to regulate the market, casino properties were later legalized through a series of court interpretations and legislation issued by individual states. Currently, many casino venues operate in Mexico, but without formal licenses.

However, setting those complexities aside, all kinds of land-based gambling (casinos, gaming machines, sports betting and other games) are generally legal in Mexico. Lotteries, like in many other countries, are under state control. The rest of the industry is regulated by the Ministry of Interior (SEGOB) through the Gambling and Raffles Bureau, and is subject to licensing at the state level. Card rooms are a notable exception, as these operate under special rules and are only allowed inside established casinos.

Is online gambling legal in Mexico?

Yes, online gambling is legal and fully regulated in Mexico. But a large asterisk should be taken into account.

The regulation of remote gambling is as convoluted as the land-based sector. The 2004 regulations only covered online betting and raffle number games. In 2021, the National Regeneration Movement published draft guidelines that would establish clearer regulations for the whole gambling industry, yet as of February 2025, the regulations remain unpassed, with no progress on the horizon.

According to Articles 20, 85, and 104 of the Reglamento, authorities only recognize online betting as an extension of an existing authorized land-based permit. SEGOB approves betting procedures and internal managing systems of the gambling companies. Mexico does not offer a separate, independent online betting permit.

There is hope on the horizon, however. On 1 January 2026, Mexico reformed its Special Tax on Production and Services (IEPS) law. This was intended to create another channel for large, international companies such as Netflix and Spotify to register with the Mexican tax authority, the Servicio de Administración Tributaria (SAT), and pay taxes to Mexican authorities; but it has also inadvertently opened the door for other ecommerce businesses to launch in the country — including iGaming platforms. Alfredo Lazcano, a local gaming lawyer, described it as a legal way for operators with European licenses to offer products from online casino software providers to Mexican players.

Mexico online gambling market overview

Experts estimate that Mexico’s online gambling sector is growing rapidly, with gross gaming revenue (GGR) anticipated to hit several billion dollars within the next few years. However, a recent 50% GGR tax hike threatens to undermine channelization efforts.

The dominant vertical is, undoubtedly, sports betting. Mexicans are highly enthusiastic about football, boxing and baseball, so it is highly recommended to choose a reliable sportsbook API provider. More than a half of online revenue comes from sports betting in Mexico, and the numbers keep growing. This has also been facilitated by a surge in mobile popularity. Two thirds of online gambling activity is performed via mobile devices, with the majority of players aged between 25-40 years old. There is also an interest in iGaming from the younger generation, with players under the age of 25 already following verticals such as esports.

Mexican citizens are completely free to gamble in offshore online casinos, and the state does not block gambling platforms without local permits. However, foreign online operators without an international license risk facing sanctions.

If you don’t have any experts helping you, your business is likely to fail even before it launches. Our talented team of lawyers can help you choose the most suitable legal jurisdiction for obtaining a license and can also guide on the administrative framework of your enterprise.

Mexican players' game preferences

Slots make up most casino games in Mexico. Mexican players enjoy bright, colorful-themed games with enthusiastic animations, and they pride themselves on their culture, so operators will have to be mindful when engaging with traditions such as the Día de Muertos. Live dealer games are also in high demand.

Mexicans also have a long-lasting passion for raffle number games such as bingo and lottery in both retail and online versions. Traditional card games, especially Caribbean Poker, Texas Hold’em, and Stud Poker, are also a must — and don’t forget to include the live versions of all these games: this trend has been sweeping the continent. Sports betting is the leading gambling activity in Mexico. Recent data show that 40% of Mexicans have placed bets on sporting events in the past year, and 21.6% of these individuals engaged in sports betting activities among their social circles. However, most sports betting activity happens online, typically through mobile apps or websites. Mobile-first behavior is the standard in Mexico.

Popular sports for betting

Much like the rest of Latin America, Mexicans are huge sports fans, and where there is passion for sport, there is also passion for betting. Opening a sportsbook in Mexico would be a winning move for online operators.

The lion’s share of sports gambling in Mexico goes to football. Bettors especially look forward to global events like the FIFA World Cup, but there’s plenty of enthusiasm for local events like Copa Libertadores. Other popular sports to bet on include horse racing, American football and baseball.

Mexico expressly regulates sports betting. Sportsbooks must partner with a locally licensed gambling operator and receive authorization from the authorities before operating. Many foreign operators are taking advantage of this opportunity to enter the Mexico online gambling market (e.g. Bettson and Novibet through a deal with Big Bola, Mexico’s leading land-based operator), and this trend is likely to continue.

How to start an online casino in Mexico

As there is no specific online casino license in Mexico, entering its market looks different. As SEGOB is not issuing new permits at the moment, the market situation is unique. Gambling operators have two legal options:

1. Partnership with an existing SEGOB permit holder. Signing a deal with existing permit holders gives an operator a compliant business option, where payment methods and advertising guidelines are already established. Nevertheless, a SEGOB sign-off is still a must for technical systems and betting procedures.
2. Registering as a foreign-licensed operator through the tax-based channel. Operators can obtain a recognized iGaming license (such as Malta), register and obtain a tax ID, then begin paying the IEPS gambling tax monthly on bets from Mexican players without the SEGOB permit or Mexican corporate partnership. This is a completely new approach that will still require time for regulators to test. It is best to get legal assistance for this option.

It is recommended to check the current legal situation before incorporating a business and taking actual steps. Gambling laws in Mexico may change over time.

Mexico online gambling legal requirements

Online gambling operators launching a business or expanding their activity in Mexico should still undergo basic steps. These include random number generator (RNG) and platform certification; anti-money laundering (AML) and know your customer (KYC) policy creation; and SPEI/OXXO/card rail integration in pesos.

Operators should create a compliance program built around SAT’s monthly IEPS filing, and from January 2026, they should also follow real-time record-access requirements.

Let’s break down the requirements for a SEGOB gaming permit application when the issuing process resumes. Operators need:

• An application for permit acquisition (SEGOB’s official form)
• A copy of the Registro Federal de ContriBuyentes (RFC)
• A certified copy of the company’s articles of incorporation registered with the Public Registry
• Official IDs for executives, partners and shareholders
• Sworn statements from all partners and shareholders
• Proof of the legal representative’s authority
• A fianza (surety bond) guaranteeing payment of obligations to SEGOB and players
• A description of the online gambling activities
• A specification of game types and verticals on the platform
• Documentation of the internal control system used for security purposes
• Application permit fee payment

Online gambling operators offering services to Mexican players must also register with the SAT and pay monthly IEPS taxes. These were raised from 30% to 50% of GGR in January 2026, and SAT needs real-time access to all transaction records. There is also player prize withholding – 1% federal ISR and a 6% state-level prize tax – on winnings from sports betting and online casino games.

Payment methods for Mexican online casinos

Payment options that Mexican players expect to see in an online casino differ from those of European players. While credit cards like VISA or Mastercard are a go-to option in Europe, WorldBank data indicates that at the end of 2020, 86% of all payments in Mexico were made in cash — and only 37% of Mexicans had a bank account.

Players prefer hybrid payments. SPEI is a popular interbank system for deposits and withdrawals here. OXXO Pay is also widespread, but handles deposits only. These systems dominate card-focused payment methods because local banks are cautious about casino business transactions. A trustworthy casino API provider combines several payment options in one product, which you should consider when choosing a software supplier. Newer QR-code and mobile-number bank transfer rails like CoDi and DiMo are also available. The tech-savvy demographic shows high interest in crypto, as well as international e-wallets.

How can Slotegrator help?

Mexico is one of Latin America’s prime iGaming markets. Despite a convoluted regulatory framework, the gambling industry is fully functional and offers strong prospects. A market with this much potential can easily become a major boost to your casino’s international reach.

However, establishing an online casino is easier said than done. Future casino operators must navigate a range of challenges, from bureaucratic tasks like local regulations, to technical issues related to platform development.

Fortunately, one-stop-shop software suppliers like Slotegrator are here to help. We offer turnkey online casino solutions to speed up the process of launching a business. Working with us can save time and money, reduce potential mistakes, and help you establish your position in the iGaming industry in Mexico or any other market on the list of countries where gambling is legal. Feel free to contact us.