GiG and LuckyDays debut in Mexico
Gaming Innovation Group (GiG) has entered the Mexican market, launching an online gambling platform with its partner, LuckyDays.This would make it the fourth regulated...
Mexico’s Online Gambling Industry: Picking Up Speed?
As LatAm’s 2nd largest iGaming market, Mexico’s online gambling industry is on the rise – fueled by changing laws, various payment systems, and a rising demand.
Table of Contents
Why is Mexico a Key Opportunity For Casino Operators?
Mexico’s online gambling market is rapidly expanding, giving casino operators a new hotspot for growth. In Latin America, it is only 2nd to the gambling traffic in Brazil and is the 4th overall in the world. Sportsbooks and iGaming websites interest Mexico’s young community, which hugely contributed to this progress.
For those wondering if it’s worth a try, we recommend checking the stats. Mexico’s market keeps growing. According to soloazar.com, its size was $2.05 billion in 2022 and is said to reach $3.7 billion in 2028. Sportsbooks gained $1.15 billion from 2017. The potential is enormous.
However, it’s not just the demand that makes Mexico so appealing – the gambling laws also support its growth. Licensed operators work under national law, which makes sure that everything is legal AND protects from possible bans. Also, casinos with a license can focus on innovative solutions, which results in stable growth – and fixed advancement is a sign of skill.
With these in mind, we have to add that Mexico’s regulations for gambling operators are still developing and will gradually turn into something more structured. This is suitable for launching a new online casino and finding affiliates to promote it. But let’s break it down, so you know exactly how to work the legal framework.
Observing Mexico’s Gambling Regulations
To tell the truth, it’s not easy to get into the Mexican online gaming business. All operations must comply with strict regulations, difficult licensing requirements, and complex taxation systems.
The gambling rules are based on the Federal Gaming and Raffles Law (1947). This law regulates iGaming, sportsbooks, casinos, and lotteries.
What Are the Requirements for Licensing?
Your company must be incorporated in Mexico in order to apply for a license. The ability to compete with both physical and online casinos is so advantageous to local operators. All you need to do is submit operational, financial, and security paperwork to the Gambling and Raffles Bureau to obtain a license, which typically takes a few months.
It’s a steep hill for international operators, though. As a foreign company, you can’t be licensed straight in Mexico. What you can do is partner with an organization that has a local license. For now, it’s the only way to access the market. But smart operators can benefit from it. A Mexican company will share the Mexicans’ thoughts. Form smart partnerships, where you, as an international operator, can provide expertise and technology, while local companies will act as the regulatory face, and tell you what sells and what works.
Even so, only obtaining a license isn’t all. As was said before, it’s not that easy. Operators should also have knowledge of the taxation system to not lose their license before they can hit a jackpot.
Understanding the Tax System
Whether you’re a local business or an international partner, Mexico makes sure you receive your cut. Here’s how taxes work in Mexico:
- A Corporate Tax of 30% has to be paid from all the profit of gambling ventures. This is relevant for both local and international casinos.
- A Special Tax on Production and Services applies especially to gambling. It’s based on betting revenue. The nature of the activity and, of course, the level of income determine how much must be paid.
- A Player Withholding Tax does exactly what its name implies. The government must receive a portion of the players’ gains. The operators alone are responsible for paying the correct amount, and the precise rate varies.
- There may be additional local taxes in a number of Mexican regions. Verify local state legislation while selecting a location to avoid being affected by the overall tax load.
It’s clear that Mexico’s gambling industry is full of opportunities, but it’s not a free-for-all. The country’s regulatory framework ensures that only serious, compliant operators can play on. But with regulations and taxes sorted out, the next step is…
Entering Mexico’s Online Gambling Market
Let’s dive straight into the action! Here’s what an operator has to do:
1. Team Up with a Licensed Land-Based Casino
Sadly, Mexico’s government hasn’t issued any independent online gambling licenses in years, so the only way for an international operator to work is under a permit from an existing onshore operator. It’s like VIP access — you need to know the right people to get in.
2. Enroll a Mexican Business Entity
But having a partner based on land isn’t enough to start taking bets in Mexico. To operate legally, you must register a Mexican business establishment, typically an S.A. de C.V. (Sociedad Anónima de Capital Variable). This ensures that everything complies with the laws and taxation system of Mexico.
3. Meet Compliance and Security Standards
Mexico is serious about Anti-Money Laundering (AML) and Know Your Customer (KYC) rules. So operators must display that they can:
- Prevent fraud and tax evasion.
- Protect customer data and transactions.
- Impose responsible gambling practices.
To demonstrate financial and legal obedience, you should submit:
- A certified financial audit report.
- Tax compliance certificates.
- Proof of secure payment processing.
4. Certify Your iGaming Software
To prove that you work fair and square and your security system is valid, your platform needs official certification. The government requires testing by independent labs, like eCOGRA or GLI (Gaming Laboratories International). Without the certificate, your games won’t be compliant with Mexico’s gambling laws.
5. Submit Your Application and Wait For Approval
Your land-based partner should submit the application to SEGOB (Secretaría de Gobernación) as soon as your software, business entity, and legislation compliance certificates are available. The best aspect is that licenses have a maximum 25-year lifespan with renewal possibilities, and approval only takes roughly 3 months.
Additional Aspects
Some extra points you need to know so it won’t come as a surprise.
- Cryptocurrencies are permitted as long as they comply with AML and legal requirements.
- Players from other countries are not prohibited by the license, which is solely valid for operations conducted within Mexico.
- A separate permit from SEGOB, which meets the transparency standards, is required to advertise or promote gambling.
We went through everything an online casino operator has to know for a start. Now you’re all set to acquire a license in Mexico and legally tap into one of the fastest-growing iGaming markets in the world.
Winning Strategies to Attract & Keep Players in Mexico’s iGaming Market
Getting the license is one thing – you just follow the pre-given steps. However, player acquisition and especially retention is an art that needs mastering. Mexico’s players know what they want and you, as an operator, also have to know what they want! It’s not hard to please them. To keep them coming just offer the right mix of games, payment options, and marketing strategies.
What Mexico’s iGaming Entushiasts Play?
To keep Mexican players attracted, operators don’t have to go over the top. Mexicans love the classics:
- Slots: Digital versions of the popular slot machines, but with additional features, and several themes. It’s that easy. Titles such as “Bonzo’s Quest” or “Book of Dead” do the job perfectly fine.
- Table games: Live dealer immersive experiences like blackjack and roulette are among the favorites of Mexican gamblers.
- Cards: Who doesn’t love good poker or baccarat hands? This pair is what will put you at the top in Mexico’s iGaming market.
Pro Tip: Add up exclusive tournaments and cashback promos and the players will stay loyal.
Local Payment Methods to Consider
Nothing kills the fun faster than a complicated payment experience. The more local options you offer, the easier for players to deposit – and more deposits mean more income.
- Credit cards in Mexico are one of the most popular payment methods with 35% of transactions done by them.
- E-Wallets, like PayPal or Mercado Pago, are on the rise because 27% of Mexicans prefer not to type in card details every time.
- Debit cards (19%) are easy, familiar, and give no headaches.
- Not everyone trusts online payments, so cash-payment methods like OXXO (6%) are perfect. Mexicans are used to paying with cash or with vouchers so they search for websites that offer this type of payment. OXXO, a Mexican convenience store, lets customers check out online and then pay using cash at any of its stores.
- Crypto and other alternatives (1%) are not huge yet, but they are growing. Forward-thinking operators are adding Bitcoin and other digital currencies for the tech-savvy crowd.
Marketing Weapons that Work on Mexico’s Online Gambling Industry
Authenticity is key to selling out. So just relying on Google Ads won’t do the trick. If you have the budget, TV and sports sponsorships can be a power move – Mexicans love sports, especially football. But if you’re new in the market and can’t overspend, sticking to trusted and relatively lower-budget options will be enough. Players trust real people more than traditional ads, so affiliate marketing in LatAm or partnering with local influencers is a real game-changer.
Casino streamers on YouTube and Twitch are HUGE. Getting a shoutout from a local influencer can streamline your traffic faster than you think. Another means of driving traffic is working with affiliates who have an understanding of how the market works. They do the promo, you get the players!
If you’re having trouble finding good affiliates, AffPapa is here to offer you some:
Apuesta Legal
GEOs: Latin America, Chile, Ecuador, Mexico, Peru
Products: Casino, Bingo, Lottery
Deals: RevShare, Hybrid
Odds Scanner
GEOs: Chile, Colombia, France, India, Italy, Japan, Mexico, Peru, Portugal, Spain, United Kingdom
Products: Sportsbook
Deals: CPA, RevShare, Hybrid
BetShoot
GEOs: United States, United Kingdom, Australia, Canada, Germany, France, Italy, Spain, Sweden, Switzerland, Belgium, Netherlands, Portugal, Russia, Brazil, Mexico, Thailand, China, South Korea, Israel, Singapore
Products: Sportsbook
Deals: Hybrid, Fixed Fee
Legalbet
GEOs: Australia, Belarus, Colombia, Greece, Kazakhstan, Mexico, Nigeria, Poland, Portugal, Romania, Russian Federation, Spain, United Kingdom, United States
Products: Sportsbook, Esports
Deals: CPA, RevShare, Hybrid, Fixed Fee
CasinoGuru
GEOs: Argentina, Belarus, Brazil, Colombia, Georgia, Kazakhstan, Mexico, Russian Federation, Ukraine, Venezuela
Products: Casino
Deals: CPA, RevShare, Hybrid, Fixed Fee
What’s Coming for Operators in Mexico’s Booming iGaming Market?
Mexico’s iGaming landscape is one of the hottest spots for operators who want to extend into a new market. It’s an exploding sector with an estimated revenue growth of 70% in the coming three years. And internet access spreads like wildfire so the iGaming community is expected to hit 31.6 million by 2028.
Following the rules of Mexico’s iGaming market will put you at the forefront of the business. The future is bright, and the stakes are high – are you ready to play?
And if you’re interested in learning more about the Mexican iGaming market, be sure to check out the “Best Casino Affiliate Programs in Mexico.”
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