Stake has announced its official launch in Mexico, as the operator will offer its services through stake.mx ahead of the World Cup 2026, with Mexico co-hosting the event.
...
iGaming in Mexico: Breakdown of the Region in 2026
With a $970 million iGaming market in 2026, double-digit annual online growth, and a co-hosted FIFA World Cup, Mexico’s iGaming market is picking up speed and is about to become the global betting spotlight.
The catch is that not every operator entering iGaming in Mexico is actually succeeding. With millions of players and strong mobile adoption, growth is real, but so are the barriers, and getting it wrong can be expensive, so here’s everything operators need to know before entering Mexico’s online gambling sector.
Table of Contents
Overview of Mexico’s gambling market
| Market size (2026) | $970 million |
| Forecast (2031) | $1.96 billion |
| Growth rate | 15.11% CAGR |
| Active players (2025) | 8 million |
| Tax rate | 30% (to be increased to 50%) |
| Regulator | SEGOB through DGJS |
With estimates to reach a $1.96 billion market size by 2031, Mexico’s online gambling market has become the second leading power in Latin America after iGaming Brazil. With a population of more than 131 million, of which 8 million are active iGaming users, internet penetration above 80%, and smartphone usage exceeding 97%, the country offers a large and highly connected player base.
Mobile usage plays a huge role in player activity. More than 60% of bets are placed through smartphones, while Android devices hold around 66% of the market share. This is one of the main reasons why mobile-first platforms perform better in iGaming Mexico than desktop-focused products.
Sports betting dominates Mexico’s iGaming market with 50% of all gambling activity, driven mainly by football and Liga MX. Casino games account for 30%, including slots, blackjack, and poker, while lottery and live dealer games make up the remaining 20%. Player behavior tendencies are also unique. Bet sizes are small, but betting frequency is quite high, which means that iGaming player retention strategies often outperform aggressive acquisition tactics.
The country’s biggest operators are already benefiting from this growth. In March 2026, Caliente, which is the biggest Mexican iGaming and sports betting platform, ranked as the fourth most visited gambling website globally, recording nearly 53 million visits in a single month. Moreover, according to Zoominfo‘s April 2026 data for the top iGaming companies in Mexico, Codere ranked first with $691.9 million in revenue, and Logrand came in second with $471.2 million.
iGaming regulations & licensing in Mexico
Mexico’s online gambling regulation really is a coin with two sides; for licensed operators, it’s a trust signal, but a risk factor for unlicensed ones. In Mexico, iGaming is supervised by the regulations and administrative decisions of the Ministry of the Interior (SEGOB), where the main authority is the Gaming and Lotteries Bureau (DGJS), which operates under the Federal Gaming and Raffles Law of 1947.
For foreign operators, there’s one big limitation: gambling licenses are only granted to Mexican entities, which means that international companies have to either establish a Mexican entity or partner with an existing local license holder.
A gaming license in Mexico is granted for 25 years and has an option to extend it for an additional 15 years, with this unusually long duration making Mexico an attractive gambling market compared to other short-term licensing jurisdictions. But unlike others, Mexico doesn’t issue a separate online gambling license. Operators must first secure a land-based authorization or collaborate with a local brand, after which they can get approval to offer iGaming. The most commonly used partnership methods are:
- S.A. de C.V. (Sociedad Anónima de Capital Variable) – the equivalent of a joint-stock company
- S. de R.L. de C.V. (Sociedad de Responsabilidad Limitada) – the equivalent of a limited liability company
Documents you need to get a gambling license in Mexico
The process of getting a gaming license in Mexico also requires a detailed documentation package:
Company formation documents – founding documents and amendments, financial statements and balance sheets, shareholders and main personnel, declaration of criminal record and bankruptcy, any business relation with other licensed operators
Fair gaming compliance documents – policy for responsible gaming, measures for protecting players against addiction, game fairness, and user data protection procedures, certification of RNG algorithms and mechanisms
AML and financial security compliance documents – anti-money laundering and counter-terrorism financing policy, KYC protocols, programs for monitoring suspicious transactions, appointment of a responsible officer for AML requirements
Keep in mind that if the documents are issued outside Mexico, they must be apostilled and translated into Spanish. Also, in practical terms, market entry is relatively fast compared to other LatAm jurisdictions, with many operators going live in 3 or 4 months, of course, if the process runs smoothly.
Mexico’s iGaming taxes & payment systems
iGaming taxes in Mexico remain a really closely watched pressure point, as online gambling revenue is subject to a 30% tax, placing the jurisdiction on the higher end of taxing globally. The government has additionally confirmed plans to raise Mexico’s iGaming tax rate to 50% through the IEPS fiscal package.
At the same time, iGaming operators in Mexico must have tax withholding systems integrated into their platforms, with two common structures mostly used. These include taxes per bet, which apply to every placed bet, and per withdrawal, applying every time a player requests a withdrawal.
Payment localization is equally important in iGaming Mexico. Players expect fast, reliable, and familiar options to pay, with all systems required to comply with AML and KYC regulations. The most commonly used payment options include:
- Sistema de Pagos Electrónicos Interbancarios (SPEI) – bank transfers
- PayPal, Mercado Pago – digital wallets
- OXXO – cash payments and vouchers
- Cobro Digital (CoDi) – mobile payments through QR codes
- Dinero Móvil (DiMo) – sending money through a phone number
- Cryptocurrency – Bitcoin and alternative digital currencies on the rise
Main challenges for gambling operators in Mexico
iGaming Mexico looks like a high-growth opportunity on paper, but the reality on the ground is a lot more complicated.
To analyze fairly, competition remains uneven in Mexico’s online gambling market. A noticeable share of the market is still dominated by unlicensed operators, many of which attract players through aggressive bonuses and fewer restrictions. SEGOB reports show that unlicensed operators take $450 million from licensed operators’ potential revenues.
Regulatory and advertising restrictions probably win the title for the biggest challenge in iGaming Mexico, as it is prohibited to directly promote gambling activities in the country, while all approved ads have to include responsible gambling messages and clearly state that minors cannot participate. The government is also in the process of introducing a new legislative proposal for 2026, which would ban betting and casino advertising between 6 am and 10:30 pm for all types of media platforms.
At last, many operators underestimate how localized the Mexican iGaming market is, and that mistake alone is often the reason why launches fail despite strong global experience.
The future of iGaming in Mexico
Multiple trends are currently shaping Mexico’s online gambling market in 2026 and giving us a sneak peek into what the region will bring in the future:
- Rising shift to hybrid land-based and online gambling experiences
- Fast adoption of cryptocurrency and alternative payment methods
- AI integration for personalized betting and improved fraud detection
- iGaming reforms that attract foreign investments and cross-border partnerships
The 2026 FIFA World Cup is expected to become one of the biggest acquisition opportunities that Mexico’s iGaming market has seen in years. With Mexico co-hosting the tournament, betting activity is guaranteed to jump with the increased media exposure, creating a strong acquisition window for operators.
At the same time, the Association of Permit Holders, Operators, and Suppliers of the Entertainment and Gambling Industry (AIEJA) has urged the government to take the opportunity and modernize Mexico’s online gambling regulations. This is mainly the reason why the country wants to establish a National Institute of Games and Lotteries under SEGOB to further regulate and inspect the sector. The trade body believes that Mexico could be positioned as a key regional entertainment and tourism spot and double visitations from 5 million to 10 million by 2030.
The real challenge for the iGaming industry is understanding Mexico on its own terms, and for those looking to get familiar with the market firsthand, the affiliate-led AffPapa Conference Cancun is returning to Mexico with its full force between November 23 and 25, 2026. Join AffPapa to gain insights about the market and explore your next launch location.
iGaming in Mexico: FAQs
What’s the size of the iGaming market in Mexico?
The iGaming market in Mexico is valued at $970 million in 2026 and is expected to grow to $1.96 billion by 2031 with a CAGR of 15.11%.
How to enter the Mexican iGaming market?
To enter the Mexican iGaming market, operators must either have a Mexican entity or collaborate with a local license holder. Having a land-based license approved by the SEGOB is mandatory, after which operators can be authorized by the DGJS to offer iGaming products.
What kind of gambling is most popular in iGaming Mexico?
The most popular form of gambling in Mexico is sports betting at 50%, followed by casino games (30%), lotteries, and live dealer casinos (20%).
What’s the legal gambling age in Mexico?
The legal gambling age in Mexico is 18, according to the 2004 amended legislation.
How is iGaming in Mexico taxed?
iGaming in Mexico is currently taxed at a 30% rate; however, the government recently confirmed the 2026 fiscal package to increase the iGaming tax to 50%.
In this AffPapa exclusive, Rosa Ochoa reflects on over 20 years in the iGaming industry, sharing her perspective on LATAM’s rapid evolution, the strategic balance of...
