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Sovereign state
Latin America
ISO MX
Review due

Mexico: gambling regulation and licensing

United Mexican States

  • Online casinoRegulated
  • Online sports bettingRegulated
  • Online pokerRegulated
Regulator
Gambling and Raffles Bureau
Headline tax
Not yet verified
Licence required
Yes
Last verified
30 Aug 2026

Summary

Mexico runs one of the largest regulated gambling markets in Latin America on a statute written in 1947. The Federal Gaming and Raffles Law prohibits games of chance except as permitted, and the 2004 Regulations let the Gambling and Raffles Bureau, inside the Ministry of the Interior, authorise the capture of bets over the internet as an extension of a land-based casino or sportsbook permit. There is no standalone online licence, so entry means working through an existing permit holder, and the market has developed around a limited set of long-dated permits rather than open licensing. That structure gives incumbents durable leverage and makes permit access, rather than regulatory approval in the ordinary sense, the practical barrier to entry. The headline change is fiscal. The IEPS on games with wagers went from 30% to 50% on 1 January 2026 and now reaches foreign operators serving Mexican users, roughly doubling the federal tax burden in a single step and extending it beyond the domestic permit structure for the first time. State-level taxes sit on top. Whether the licensed market absorbs that increase or cedes ground to offshore supply is the open question, and it is being tested now rather than in prospect.

Key facts

Regulator
Gambling and Raffles Bureau (DGJS)
Regulator type
Government ministry
Headline tax
Not yet verified
Licence required
Yes
Minimum age
18+
Tax base
The federal special tax on production and services (IEPS) on games with wagers and raffles rose from 30 per cent to 50 per cent with effect from 1 January 2026, under a decree published in the Diario Oficial de la Federacion on 7 November 2025. The reform also extended the tax for the first time to foreign providers with no establishment in Mexico that offer these activities to users in national territory, directly or through digital intermediation platforms, and requires a central betting system, a cash control system and permanent real-time reporting to the SAT. Corporate income tax (ISR) of about 30 per cent, federal charges of roughly 1 to 2 per cent of betting income and state taxes apply on top; state rates vary. Confirm the precise IEPS taxable base against the LIEPS before relying on a headline number.
Capital
Mexico City
Currency
MXN
Official languages
Spanish

Licensing

Licence required
Yes
Application window
Not yet verified
Local establishment required
Not yet verified
Local server required
Not yet verified
Barriers to entry
The binding constraint is not the application, it is the permit. Because online supply is an annex to a land-based permit and the Bureau is not issuing new ones freely, market entry in practice means partnering with, or acquiring, an existing Mexican permit holder.

Licence types

  • DGJS permit (permiso) for land-based casino or sportsbook, with remote-betting annex

    Scope
    Holders of a land-based casino or sportsbook permit may be authorised by the Bureau to develop, operate and capture bets through the internet, mobile phones or electronic devices. There is no standalone online permit.
    Term
    Between 1 and 25 years, at the discretion of the Bureau, with the possibility of extension for further 15-year periods

Taxation

Headline GGR tax
Not yet verified
Effective date
1 Jan 2026
Tax base
The federal special tax on production and services (IEPS) on games with wagers and raffles rose from 30 per cent to 50 per cent with effect from 1 January 2026, under a decree published in the Diario Oficial de la Federacion on 7 November 2025. The reform also extended the tax for the first time to foreign providers with no establishment in Mexico that offer these activities to users in national territory, directly or through digital intermediation platforms, and requires a central betting system, a cash control system and permanent real-time reporting to the SAT. Corporate income tax (ISR) of about 30 per cent, federal charges of roughly 1 to 2 per cent of betting income and state taxes apply on top; state rates vary. Confirm the precise IEPS taxable base against the LIEPS before relying on a headline number.

Compliance

Minimum age
18+
National self-exclusion
Not yet verified
KYC requirements
Not yet verified
Stake limits
Not yet verified

Advertising

Advertising permitted
Yes
Affiliate rules
Affiliates are not separately licensed. Because advertising itself requires prior permission and only permit holders may be promoted, affiliate activity is constrained by the permit structure rather than by a separate affiliate code.
Mandatory warnings
Advertising must include responsible-play messaging presenting gambling as entertainment and recreation.
Penalties for breach
The Gambling and Raffles Bureau within the Secretariat of the Interior supervises the regime and can act against the permit.

Restrictions

  • Advertising and promotion of games with bets and lotteries through any medium requires prior permission from the Secretariat of the Interior.
  • Advertising must carry messaging inviting responsible play, framing gambling as entertainment and recreation rather than as a source of income.
  • Because permission is required before advertising, the regime operates as pre-clearance rather than as retrospective supervision.
  • Only operators working under a valid SEGOB permit may be advertised, which follows from there being no standalone online licence.

Outlook

The 50 per cent IEPS is the story for the next twelve months: whether it holds, whether foreign operators register and comply, and what it does to channelisation and to the economics of the permit-holder model. The November 2023 reform of the Regulations is still being litigated, and the permit-annex structure remains the single biggest barrier to entry.

Frequently asked questions

Who regulates online gambling in Mexico?
The Direccion General de Juegos y Sorteos, part of the Secretaria de Gobernacion, under the Federal Gaming and Raffles Law of 1947 and its 2004 Regulations.
Can an operator get a Mexican online-only licence?
No. Online operation is authorised as an annex to an existing land-based casino or sportsbook permit, not as a licence in its own right.

iGT coverage of Mexico

Mexico's Rewrite of the 1947 Gambling Law Is Ready for the Security Cabinet
Regulatory

Mexico's Rewrite of the 1947 Gambling Law Is Ready for the Security Cabinet

Interior Minister Rosa Icela Rodríguez told the president's morning conference that a reform of the Federal Gaming and Raffles Law, unchanged in substance for nearly eight decades, has cleared internal review and goes next to the security cabinet. Its purpose is money laundering and tax fraud in casinos and betting shops, about 20 of which are under investigation.

Stake Goes Live in Mexico With One Eye on the World Cup
Corporate

Stake Goes Live in Mexico With One Eye on the World Cup

One of online gambling's most recognisable crypto brands has planted its flag in one of Latin America's fastest-growing regulated markets. With the World Cup arriving in Mexico this summer, the timing is no accident.

Sources

  1. Ley Federal de Juegos y Sorteos (DOF 31 December 1947)

    Camara de Diputados del H. Congreso de la Union

    Tier 1Accessed 4 Aug 2026
  2. Tier 1Accessed 4 Aug 2026
  3. Secretaria de Gobernacion

    Gobierno de Mexico

    Tier 1Accessed 4 Aug 2026
  4. Gambling Laws and Regulations 2026 - Mexico

    ICLG (International Comparative Legal Guides)

    Tier 3Accessed 4 Aug 2026

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This page is industry reference information and not legal advice.

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