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Sovereign state
Latin America
ISO MX

Mexico: gambling regulation and licensing

United Mexican States

  • Online sports bettingRegulated
  • Online casinoRegulated
  • Online pokerRegulated
  • Horse race bettingRegulated
  • Land-based (reference)Regulated
Regulator
Gambling and Raffles Bureau
Headline tax
50% GGR
Licence required
Yes
Last verified
23 Sept 2026

Summary

Mexico regulates gambling under the Federal Gaming and Raffles Law of 1947, which bans games of chance and games with wagers except as permitted by the Ministry of the Interior (SEGOB). Its Gambling and Raffles Bureau (DGJS) issues permits under the 2004 Regulations, last reformed in November 2023. There is no standalone online licence: holders of permits for remote betting centres and number-draw halls may capture bets online under a mechanism SEGOB approves, so online sports betting and casino run through Mexican permit holders, one permit per establishment. Permits last 1 to 15 years and can be extended. The 2023 reform banned slot machines, excluded card games, dice and roulette from the draw modalities casinos rely on, and stopped new permits for those activities, leaving existing permits to run to expiry without extension; the industry challenged it in the courts. The tax burden rose sharply on 1 January 2026, when the special tax on production and services (IEPS) on gambling went from 30% to 50%. Permit holders pay it on stakes less prizes, while foreign online providers serving Mexican users now owe it on gross receipts and must register with the tax authority or face blocking. Income tax, a federal participation fixed in each permit and state taxes come on top. Enforcement has turned to money laundering: SEGOB suspended 13 casinos in November 2025, new anti-money-laundering rules take effect on 30 November 2026, and the Interior Minister said in September 2026 that SEGOB had a proposed law to update the 1947 statute, to be put to the Security Cabinet.

Common pitfalls

Assuming a foreign operator can get a Mexican online licence: there is none, and online supply runs through a Mexican establishment permit. Treating the IEPS as a tax on profit: it is 50% of stakes less prizes for permit holders, and 50% of gross receipts for foreign online providers. Assuming new casino permits can include slots, card games or roulette: the 2023 reform stopped that, and existing permits covering them cannot be extended.

Key facts

Regulator
Gambling and Raffles Bureau (DGJS)
Regulator type
Government ministry
Headline tax
50% GGR
Licence required
Yes
Minimum age
18+
Tax base
IEPS at 50% from 1 January 2026 (LIEPS art. 2, fraction II, inciso B, as reformed by the decree of 7 November 2025; 30% before). For permit holders the base is the total received from participants, including all stakes, less prizes actually paid and amounts refunded before the event (LIEPS art. 18), in effect gross gaming revenue. For foreign residents without an establishment offering games with wagers online to users in Mexico, the base is the total actually received from participants with no deduction at all (new sixth paragraph of art. 18), and they must register and file with the SAT as providers of digital services (art. 20-A).
Capital
Mexico City
Currency
MXN
Official languages
Spanish

Licensing

Licence required
Yes
Application window
Not yet verified
Local establishment required
Yes
Local server required
Not yet verified
Bank guarantee or bond
A bond from an authorised institution covering prizes left unpaid over 60 days of average annual operation, kept in force for the life of the permit (Regulations art. 29, fraction XIII).
Certification requirements
Online and telephone betting needs a written internal control system that guarantees the betting systems cannot be tampered with and records the account number and identity of each bettor and the date, time, amount and selection of each bet; the betting mechanism must be approved in advance by SEGOB (Regulations art. 85).
Barriers to entry
Permits go only to companies incorporated under Mexican law (Regulations art. 20), one permit per establishment, and are non-transferable (art. 31). Applicants need a favourable opinion from the state, municipality or Mexico City borough concerned, a ten-year feasibility study and proven experience (art. 22). Shareholders up to the ultimate beneficiary may not sit in low-tax jurisdictions unless listed on an equivalent exchange, and at least 25% of the board must be independent (art. 29). Since 16 November 2023 SEGOB may not grant new permits for activities outside the reformed Regulations, so the practical route in is through an existing permit holder.

Licence types

  • SEGOB permit for a remote betting centre (libro foráneo) and number-draw hall, with authority to capture bets online

    Scope
    Betting on sporting events and races in Mexico or abroad, number and symbol draws, and capture of bets by internet, telephone or electronic means under a mechanism approved in advance by SEGOB (Regulations arts. 76 to 88 and 124). Each permit covers one establishment; there is no standalone online permit.
    Term
    Minimum 1 year, maximum 15 years; extendable for subsequent periods of up to 15 years if the holder is up to date with its obligations
    Fee basis
    A participation in the operator's proceeds for the federal government, fixed in each permit under guidelines issued by SEGOB (Law art. 5; Regulations arts. 8 and 32)
    Renewal terms
    Extension by periods of up to 15 years for compliant holders (Regulations art. 33); no extension for permits covering activities excluded by the 2023 reform

  • SEGOB permit for a racetrack, greyhound track or frontón

    Scope
    Pari-mutuel and other betting on live events at the venue; holders whose main activity is the venue may be granted complementary remote betting centres and number-draw halls (Regulations art. 28)
    Term
    Minimum 1 year, maximum 15 years; extendable for subsequent periods of up to 15 years
    Fee basis
    Participation fixed in the permit

Taxation

Headline GGR tax
50% GGR
Effective date
1 Jan 2026
Corporate tax
30%
Player winnings tax
Federal income tax on prizes: 1% of the total to be distributed among winning tickets in games with wagers; for lotteries, raffles and draws, 1% of the prize, or 21% in states whose local tax on prizes exceeds 6% (LISR art. 138). State taxes on prizes may apply.
Withholding mechanism
The operator paying the prize withholds the federal tax; it is a final payment where the winner declares the income as required (LISR arts. 138 and 139).
Tax base
IEPS at 50% from 1 January 2026 (LIEPS art. 2, fraction II, inciso B, as reformed by the decree of 7 November 2025; 30% before). For permit holders the base is the total received from participants, including all stakes, less prizes actually paid and amounts refunded before the event (LIEPS art. 18), in effect gross gaming revenue. For foreign residents without an establishment offering games with wagers online to users in Mexico, the base is the total actually received from participants with no deduction at all (new sixth paragraph of art. 18), and they must register and file with the SAT as providers of digital services (art. 20-A).

Earmarked levies

  • Federal participation (participación): Fixed in each permit under SEGOB guidelines; creditable against the IEPS (LIEPS art. 5o.-B) (Federal government, originally for social prevention and welfare establishments (Law art. 5); the 2026 Revenue Law budgets MXN 2,578.3 million)
  • State gambling taxes: Set by each state; creditable against the IEPS up to one fifth of the IEPS due (State governments)

Compliance

Minimum age
18+
National self-exclusion
Not yet verified
AML regime
Permitted gambling is a vulnerable activity under the LFPIORPI: identification at 325 UMA, a notice to the Finance Ministry at 645 UMA, and no cash for tickets or prizes of 3,210 UMA or more (arts. 17 and 32). Acuerdo 115/2026 adds a risk-based approach from 30 November 2026, with a documented risk assessment due from 1 March 2027. Permit holders must also report to the authorities and to SEGOB any customer conduct that may amount to organised crime or money laundering (Regulations art. 29, fraction IV).
AML supervisor
Secretaría de Hacienda y Crédito Público, through the Financial Intelligence Unit (UIF) and the SAT
Source of funds thresholds
Customer identification at 325 UMA and notices at 645 UMA per operation (LFPIORPI art. 17, fraction I)
Central monitoring system
Permit holders must keep a central betting system that records and totals all transactions and a cash control system, and give the SAT permanent online, real-time access to them; failure can lead to closure of the establishment (LIEPS art. 20).
KYC requirements
Online bets must be recorded against the bettor's account number and identity (Regulations art. 85). Under the AML law operators must identify customers in any operation of 325 UMA or more, including buying chips or tickets and paying prizes (LFPIORPI art. 17, fraction I).
Stake limits
Not yet verified
Reporting obligations
Monthly report to SEGOB of revenue and participations paid; quarterly financial statements within 20 working days and audited annual statements within six months; notice of any change in shareholding up to the ultimate beneficiary (Regulations art. 29). Monthly IEPS declarations to the SAT.
Game content restrictions
Slot machines are prohibited in all forms (Regulations art. 12). No bets on national non-professional events or on anything below the top professional league of a sport (art. 84).

Advertising

Advertising permitted
Yes
Mandatory warnings
Advertising must state that games with wagers are prohibited for minors, and must invite people to play responsibly and mainly for entertainment, fun and recreation (Regulations art. 9, fractions IV and V).
Penalties for breach
Breaches of the Regulations or of a permit are fined up to MXN 10,000 with possible arrest; serious or repeated breaches (twice or more in a year) lead to revocation and closure (Regulations arts. 148 and 149).

Restrictions

  • Gambling may be advertised by any medium only once the operator holds a SEGOB permit for the games advertised (Regulations art. 9)
  • Permitted establishments may not explicitly promote the bets offered in them (art. 9, fraction I)
  • Advertising must be clear and precise and must not mislead, deceive or confuse the public about the services offered (art. 9, fraction II)
  • Every advertisement must state the number of the permit (art. 9, fraction III)

Payments

Credit card ban
Not yet verified
Crypto stance
Not yet verified
Withdrawal timeframe rules
Winning betting receipts at remote betting centres may be cashed for 60 working days after the event (Regulations art. 88).
Currency restrictions
All gambling operations must be in Mexican pesos (Regulations art. 10), and operators may not give bettors credit, directly or indirectly (art. 11). Online and telephone bets count as paid when the bank confirms payment (art. 86). Cash may not be used to buy tickets or pay prizes of 3,210 UMA or more (LFPIORPI art. 32).

Enforcement

ISP blocking
Not yet verified
DNS blocking
Not yet verified
Payment blocking
Not yet verified
App store takedowns
Not yet verified
Administrative penalties
Fine of MXN 100 to 10,000 or arrest of up to 15 days, with revocation of the permit and closure for serious or frequent breaches (Law art. 17; Regulations arts. 147 to 151)
Criminal penalties
Operating unauthorised games or venues: three months to three years in prison and a fine of MXN 500 to 10,000, plus confiscation and possible dissolution of the business (Law arts. 12 and 14)
Operator liability
Unpermitted venues are closed by SEGOB (Law art. 8). A foreign online provider that fails to register, pay or file for the IEPS can have access to its service temporarily blocked through Mexican telecommunications concession holders (LIEPS art. 2, fraction II, inciso B, and LIVA art. 18-H BIS).
Player liability
Players and spectators at a venue where gambling takes place illegally face one month to two years in prison and a fine of MXN 100 to 5,000 (Law art. 13, fraction II). The statute speaks of venues and does not address online play.

Notable actions

  • Thirteen casinos operating physically and online11 Nov 2025

    SEGOB's DGJS suspended their operation after the Finance Ministry and the Security Cabinet identified them and the UIF listed them for account blocking over suspected illicit operations

  • Ten online casino domains under permits held by Ganador Azteca, Espectáculos Deportivos de Occidente and three other permit holders, including bet365.mx and betano.mx5 Jul 2026

    Reported as suspended by the DGJS; no SEGOB release could be retrieved to confirm the list

Timeline

  1. 31 Dec 1947

    Federal Gaming and Raffles Law published

  2. 17 Sept 2004

    Regulations of the Federal Gaming and Raffles Law published, including online capture of bets (art. 85)

  3. 16 Nov 2023

    Reform of the Regulations bans slot machines, excludes card games, dice and roulette from draws and cuts permit terms to 15 years

  4. 16 Jul 2025

    Reform of the anti-money-laundering law published

  5. 7 Nov 2025

    IEPS decree raises the gambling rate to 50% and extends it to foreign online providers

  6. 11 Nov 2025

    SEGOB suspends 13 casinos flagged by the Finance Ministry for suspected illicit operations

  7. 1 Jan 2026

    The 50% IEPS on games with wagers and draws takes effect

  8. 7 Aug 2026

    Finance Ministry publishes Acuerdo 115/2026 on risk-based AML rules, in force 30 November 2026

  9. 3 Sept 2026

    Interior Minister says SEGOB has a proposed law to update the 1947 statute, to be put to the Security Cabinet

Outlook

Three things to watch in the next twelve months. First, the SEGOB update of the Federal Gaming and Raffles Law, which the Interior Minister said on 3 September 2026 would be put to the Security Cabinet; no text is public. Second, the risk-based anti-money-laundering rules in Acuerdo 115/2026, in force on 30 November 2026, with risk assessments due from 1 March 2027 and automated monitoring by 1 June 2027. Third, whether foreign online providers register with the SAT under the 50% IEPS or are blocked, and how the courts resolve the challenges to the 2023 reform of the Regulations.

Frequently asked questions

Who regulates gambling in Mexico?
The Gambling and Raffles Bureau (DGJS) of the Ministry of the Interior (SEGOB), under the Federal Gaming and Raffles Law of 1947 and its 2004 Regulations. The SAT collects the gambling tax and the Finance Ministry supervises anti-money-laundering compliance.
Can an operator get a Mexican online-only licence?
No. Holders of SEGOB permits for remote betting centres and number-draw halls may capture bets online under a mechanism SEGOB approves, but there is no standalone online permit. Permits go only to Mexican companies, one per establishment, and cannot be transferred.
What is the gambling tax rate in Mexico?
The IEPS on games with wagers and draws is 50% from 1 January 2026, up from 30%. Permit holders pay it on stakes less prizes; foreign online providers without a Mexican establishment pay it on gross receipts. Income tax at 30%, a federal participation and state taxes come on top.
How long does a Mexican gambling permit last?
Between 1 and 15 years for remote betting centres, number-draw halls, racetracks and frontones, extendable by periods of up to 15 years if the holder is compliant. Permits covering activities excluded by the 2023 reform cannot be extended.
Are slot machines and table games legal in Mexico?
Slot machines have been prohibited since the November 2023 reform, which also excluded card games, dice and roulette from the draw modalities casinos operate under. Existing permits that include those activities are honoured until they expire, for no more than 15 years from 16 November 2023.
What anti-money-laundering rules apply to Mexican operators?
Gambling is a vulnerable activity: operators identify customers at 325 UMA, file a notice at 645 UMA and cannot take cash for tickets or prizes of 3,210 UMA or more. Risk-based rules take effect on 30 November 2026.

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Sources

  1. Ley Federal de Juegos y Sorteos (DOF 31 December 1947, no reforms)

    Orden Jurídico Nacional, Secretaría de Gobernación

    Tier 1Accessed 23 Sept 2026Published 31 Dec 1947
  2. Reglamento de la Ley Federal de Juegos y Sorteos (DOF 17 September 2004, last reform DOF 16 November 2023)

    Orden Jurídico Nacional, Secretaría de Gobernación

    Tier 1Accessed 23 Sept 2026Published 17 Sept 2004
  3. Decreto por el que se reforman y adicionan diversas disposiciones de la Ley del Impuesto Especial sobre Producción y Servicios (DOF 7 November 2025)

    Diario Oficial de la Federación

    Tier 1Accessed 23 Sept 2026Published 7 Nov 2025
  4. Ley del Impuesto Especial sobre Producción y Servicios, consolidated text (last reform DOF 12 November 2021), arts. 5o.-B, 18 and 20

    Orden Jurídico Nacional, Secretaría de Gobernación

    The consolidated text still shows the 30% rate. The decree of 7 November 2025 raised it to 50% from 1 January 2026 and added the foreign-provider rules; the later decree is recorded, and the provisions it did not amend (arts. 5o.-B, 18 first paragraphs and 20) are read from the consolidated text.

    Tier 1Accessed 23 Sept 2026Published 30 Dec 1980
  5. Decreto por el que se expide la Ley de Ingresos de la Federación para el Ejercicio Fiscal de 2026 (DOF 7 November 2025), art. 1

    Diario Oficial de la Federación

    Tier 1Accessed 23 Sept 2026Published 7 Nov 2025
  6. Ley del Impuesto sobre la Renta (last reform DOF 1 April 2024), arts. 9 and 137 to 139

    Orden Jurídico Nacional, Secretaría de Gobernación

    Tier 1Accessed 23 Sept 2026Published 11 Dec 2013
  7. Ley del Impuesto al Valor Agregado (last reform DOF 12 November 2021), art. 18-H BIS

    Orden Jurídico Nacional, Secretaría de Gobernación

    Tier 1Accessed 23 Sept 2026Published 29 Dec 1978
  8. Código Civil Federal, art. 646 (age of majority)

    Orden Jurídico Nacional, Secretaría de Gobernación

    Tier 1Accessed 23 Sept 2026Published 26 May 1928
  9. Decreto por el que se reforman y adicionan diversas disposiciones de la Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (DOF 16 July 2025), arts. 17 and 32

    Diario Oficial de la Federación

    Tier 1Accessed 23 Sept 2026Published 16 Jul 2025
  10. Acuerdo 115/2026 por el que se modifican las Reglas de carácter general a que se refiere la LFPIORPI (DOF 7 August 2026)

    Diario Oficial de la Federación

    Tier 1Accessed 23 Sept 2026Published 7 Aug 2026
  11. Segob suspende la operación de 13 casinos por presuntas operaciones ilícitas detectadas por la SHCP (Comunicado 085)

    Secretaría de Gobernación

    Tier 1Accessed 23 Sept 2026Published 11 Nov 2025
  12. Versión estenográfica, conferencia de prensa de la presidenta Claudia Sheinbaum Pardo del 3 de septiembre de 2026

    Presidencia de la República

    Tier 2Accessed 23 Sept 2026Published 3 Sept 2026
  13. Suspendidos 10 casinos en línea; UIF recibe alertas por al menos 15 mil mdp

    La Jornada

    Tier 3Accessed 23 Sept 2026Published 5 Jul 2026
  14. Gambling Laws and Regulations, Mexico chapter (edition published 19 November 2024, written October 2024)

    ICLG (International Comparative Legal Guides)

    Tier 3Accessed 23 Sept 2026Published 19 Nov 2024

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This page is industry reference information and not legal advice.

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