Is Gambling Legal in Mexico? Current Laws & Regulations Explained

Key Information

Last Update 2025

Regulatory Authority Ministry of the Interior (Secretaría de Gobernación, SEGOB) – Gambling and Raffles Bureau (Dirección General de Juegos y Sorteos)

License Cost Varies

Regulation by Activity Type

Casinos Regulated

Online Casinos Unregulated

Betting Regulated

Online Betting Regulated

Lotteries Regulated

Poker Regulated

Highlights

Gambling is federally regulated under the 1947 Federal Gaming and Raffles Law and its 2004 Regulation.
Only Mexican-registered legal entities can obtain gambling licenses; foreign operators must partner locally.
The Ministry of the Interior (SEGOB) and its Gaming and Lotteries Bureau are the main regulatory authorities.
A 2023 presidential decree bans new slot machine permits and limits all new gambling permits to 15 years.
Online gambling is legal but only allowed via partnerships with licensed land-based operators; direct online licenses are not issued.
All gambling activities require prior SEGOB authorization; unlicensed operations remain a significant enforcement challenge.
Operators must comply with strict AML, responsible gaming, and technical standards, including KYC and player protection measures.

Legislation

Primary Legislation

The legal framework governing gambling in Mexico is primarily established at the federal level and is centered on the following core laws and regulations:

Federal Law of Games and Raffles (Ley Federal de Juegos y Sorteos, 1947): This is the foundational statute that regulates all gambling activities in Mexico. It generally prohibits gambling, except for specific forms expressly authorized under the law, such as lotteries, raffles, sports betting, and certain games of skill or chance. The law sets the baseline for what is permitted and delegates regulatory authority to federal agencies.
Regulations of the Federal Law of Games and Raffles (Reglamento de la Ley Federal de Juegos y Sorteos, 2004): These regulations provide detailed rules for the implementation and enforcement of the 1947 law. They clarify the types of permitted gambling activities, outline operational requirements for authorized games, and include provisions related to both land-based and online gambling. However, the regulations do not comprehensively address online gambling, leaving significant discretion to the regulatory authority.
Recent Amendments and Presidential Decrees: The legal framework has been updated through various decrees, most notably the 2023 Decree, which introduced significant changes such as the prohibition of slot machines for new permit holders, modifications to permit terms, and the elimination of sub-licensing arrangements. These amendments are binding and further define the scope and limitations of authorized gambling activities in Mexico.

Collectively, these instruments form the backbone of gambling regulation in Mexico. The law is binding nationwide, but gaps in the legislation—especially regarding online gambling—mean that much is left to regulatory interpretation and administrative discretion. Additional general laws, such as those on consumer protection and personal data, may also apply to gambling operations.

Regulatory Authority

The primary body responsible for the regulation, oversight, and enforcement of gambling laws in Mexico is:

Ministry of the Interior (Secretaría de Gobernación, SEGOB): This federal ministry is the central authority for gambling regulation. Within SEGOB, the General Directorate of Games and Raffles (Dirección General de Juegos y Sorteos, DGJS) is specifically tasked with the administration, control, and supervision of all authorized gambling and raffle activities.

Key legal responsibilities of the regulatory authority include:

Granting and revoking permits for authorized gambling and raffle activities
Supervising compliance with the Federal Law of Games and Raffles and its Regulations
Enforcing prohibitions and restrictions outlined in the legislation and decrees
Issuing administrative guidelines and interpretations to address regulatory gaps, particularly for online gambling
Overseeing advertising, promotion, and consumer protection measures related to gambling

Other forms of gambling, such as state lotteries, may be regulated by separate entities (e.g., the National Lottery for Public Assistance), but all betting games and general gambling activities fall under the jurisdiction of SEGOB and its Directorate.

License Types

Types of Gambling Licenses in Mexico

Land-Based Casino License: Permits operation of physical casinos, including table games, sports betting, and (for existing licenses) slot machines. New slot machine operations are prohibited for new licensees.
Online Gambling License: Allows offering of online casino games, sports betting, bingo, and related activities. This license is intrinsically linked to a land-based casino license—only entities with a physical presence and permit can apply for online operations.
Betting Shop (Remote Betting Center) License: Authorizes establishments to accept bets on sports and other events, both in-person and online.
Horse and Greyhound Racing License: Covers betting activities at racetracks.
Jai Alai (Fronton) License: Permits betting on jai alai matches at designated arenas.
Lottery and Raffle Licenses: Separate authorizations for organizing lotteries and raffles, typically under state control.

Application Process and Procedures

Authority: All gambling licenses are issued and supervised by the Ministry of the Interior (SEGOB), specifically through its General Directorate of Games and Raffles (DGJS).
Eligibility: Only Mexican legal entities can apply. Foreign companies must partner with a local license holder or form a Mexican subsidiary.
Documentation:
- Company formation documents and articles of incorporation
- Detailed information on shareholders, including name, nationality, domicile, official identification, and criminal record declarations
- Financial statements and evidence of financial stability
- Responsible gambling and AML (Anti-Money Laundering) policies
- Technical documentation on gaming systems, RNG certification, and internal control systems
- Proof of compliance with player protection and data security requirements
Internal Controls: Applicants must demonstrate robust internal control systems for transaction integrity, player registration, and regulatory compliance.
Application Submission: All documents must be submitted to SEGOB. Foreign documents require apostille and Spanish translation.
Land-Based Requirement for Online: Online gambling licenses are only granted as an extension of a land-based license. Independent online-only licenses are not available.
Approval Process: SEGOB reviews the application, may request additional information, and conducts due diligence before granting a permit.

Duration, Renewal, and Scope of Licenses

Term: As of the November 2023 Decree, new licenses are granted for a minimum of 1 year and a maximum of 15 years. Existing licenses issued before the Decree remain valid for their current term, up to a non-extendable maximum of 15 years.
Renewal: Licenses are not automatically renewable. Upon expiration, a new application must be submitted. Existing slot machine permits cannot be extended beyond the current term.
Venue Specificity: Each permit is valid for a single venue or event. Any change of location requires a new permit application.

Licensing Costs and Financial Requirements

Application Fees: There are mandatory government fees for processing license applications. The exact amounts are not publicly standardized and may vary by license type and scope.
Financial Guarantees: Applicants must demonstrate financial solvency, often through submission of audited financial statements and, in some cases, provision of financial guarantees or deposits.
Operational Fees: Ongoing annual fees apply for maintaining the license, in addition to compliance and reporting costs.
Municipal Fees: For land-based operations, additional municipal permits (such as land use) may incur further costs.

Key Requirements for Obtaining and Maintaining a License

Corporate Structure: Only Mexican-incorporated companies are eligible. All shareholders must disclose personal and financial information and certify no criminal background related to economic, tax, or organized crime offenses.
Internal Controls and Compliance:
- Implementation of robust internal control and player registration systems
- Compliance with responsible gambling and anti-addiction measures
- Strict adherence to AML and KYC (Know Your Customer) requirements
- Technical certification of gaming systems and software
- Approval and ongoing monitoring by SEGOB
Operational Restrictions: Slot machines are banned for new licensees. Only permit holders (not operators) may run gambling establishments; sub-licensing is no longer permitted for new permits.
Reporting: Regular reporting to SEGOB on financial, operational, and compliance matters is required.
Advertising and Promotion: Separate authorization is required for all gambling advertising and must comply with regulatory standards.

Summary Table: Main License Types and Core Features

License Type	Eligible Applicants	Duration	Key Requirements	Slot Machines Allowed	Online Operations
Land-Based Casino	Mexican companies	1–15 years (max, non-extendable)	Financial solvency, internal controls, compliance	Only for existing permits (no new)	Yes, if extended from land-based
Online Gambling	Land-based permit holders	1–15 years (max, non-extendable)	Technical, financial, AML/KYC, SEGOB approval	No	Yes (must be tied to land-based)
Betting Shop	Mexican companies	1–15 years	Venue-specific, compliance, controls	No	Yes (if tied to land-based)
Horse/Jai Alai	Mexican companies	1–15 years	Venue/event-specific, compliance	No	Possible, if tied to land-based

Gambling Tax

Tax Rates for Gambling Operators in Mexico

Tax Type	Applicable Rate	Basis of Taxation	Notes
Corporate Income Tax	30%	Net profits (Gross Revenue minus allowable expenses)	Applies to all gambling operators, both land-based and online
Betting Revenue Tax	1% to 30%	Gross Gaming Revenue (GGR): Total bets minus winnings paid	Rate depends on type of gambling and revenue volume
Value Added Tax (VAT)	0% or reduced rate	On services provided	Sports betting generally 0%; other gambling may have reduced rates or exemptions

Basis for Taxation

Corporate Income Tax is calculated on the operator's net profits, which is gross revenue from gambling activities minus allowable operating expenses.
Betting Revenue Tax is typically assessed on Gross Gaming Revenue (GGR), defined as the total amount wagered by players minus the total winnings paid out.
VAT is generally not applied to sports betting (0% rate), while other gambling services may be subject to a reduced rate or exemption, depending on the specific activity.

Tax Reporting and Payment Requirements

Operators must file regular tax returns in accordance with the general corporate tax calendar in Mexico.
Corporate income tax is usually declared and paid annually, with advance monthly payments based on estimated profits.
Betting revenue taxes are generally reported and paid monthly, based on the GGR for the relevant period.
Operators are required to maintain detailed financial records, including all bets accepted, winnings paid, and other relevant transactions, to ensure accurate tax calculation and compliance.
All tax payments must be made in Mexican pesos to the federal tax authority (Servicio de Administración Tributaria, SAT).
Operators must also comply with any additional state-level tax obligations, which may vary depending on the location of their operations.

Tax Incentives, Exemptions, and Special Provisions

There are generally no specific tax incentives or exemptions for gambling operators at the federal level.
Value Added Tax (VAT) is often exempt or subject to a 0% rate for sports betting, and may be reduced or exempted for other forms of gambling, depending on the service provided.
No special deductions or accelerated depreciation rules apply specifically to gambling operators beyond standard corporate tax provisions.
Permits for slot machines issued before the November 2023 decree remain valid for a maximum of 15 years, but this affects operational terms rather than taxation.

Prohibited Individuals

Age Restrictions and Identification Requirements

The minimum legal age for participating in any form of gambling in Mexico is 18 years. Entry to gambling establishments and participation in both land-based and online gambling activities are strictly prohibited for minors.
Operators are required to implement robust identification and registration systems to verify the age and identity of all players. This includes collecting official identification documents and maintaining records to ensure compliance.
For online gambling, participants must be identified through a registration system, and operators are obligated to verify the identity and age of users before granting access to gambling services.
Individuals under the influence of alcohol or drugs are not allowed entry into gambling establishments.

Prohibited Activities and Game Restrictions

All forms of gambling are generally prohibited in Mexico unless specifically authorized by the regulatory authority. Only activities expressly permitted by law or regulation are allowed.
As of November 2023, the operation of slot machines is prohibited for new permit holders. Existing permits for slot machines remain valid but are limited to a non-extendable term of 15 years from the date of the decree.
Standalone card rooms are not permitted; card games such as poker can only be offered as part of casino facilities and not as independent venues.
Games involving dice, roulette, and slot machines are no longer classified as "raffles" and are now expressly prohibited unless covered by existing permits.
Only authorized games—such as sports betting, bingo, certain table games, and state-controlled lotteries—may be offered. Any other types of games or unauthorized betting are strictly forbidden.
Operators are not permitted to offer credit to participants; all bets must be made using the national currency, Mexican pesos. The use of cryptocurrency is excluded from authorized betting activities.

Advertising and Marketing Limitations

Advertising and marketing of gambling activities are subject to strict regulation. All promotional activities must be directed exclusively at persons of legal age (18+).
Advertising must not target minors or vulnerable groups, and any form of misleading, exaggerated, or unsubstantiated claims is prohibited.
All gambling-related advertising and promotions require prior authorization from the regulatory authority and must comply with requirements for transparency and accuracy.
Operators must ensure that all marketing materials contain responsible gambling messages and warnings about the risks of gambling addiction.
Sanctions for breaching advertising regulations can include fines and, in severe cases, closure of the gambling establishment.

Responsible Gambling and Player Protection Measures

Operators are required to implement responsible gambling measures, including staff training, providing information about responsible gambling, and offering resources for addiction support.
Online gambling platforms must provide features such as betting limits, self-exclusion options, and prompts to encourage players to take breaks from play.
Operators must display warnings about the risks of gambling addiction and provide contact information for organizations that assist individuals with gambling problems.
Cooperation with the National Commission for Combating Addictions (CONADIC) is mandatory, including sharing information and supporting public health initiatives related to gambling addiction.
Operators must maintain robust internal control systems to ensure fairness, transparency, and the protection of player data.

Geographic and Location Restrictions

Permits for gambling establishments are venue-specific; each permit is granted for a single location or event. Any change of location requires a new permit application.
Gambling activities are only permitted within the physical boundaries authorized by the permit. Unauthorized expansion or relocation is not allowed.
Online gambling operations must be linked to a licensed land-based casino within Mexico, ensuring that remote gambling is supervised and controlled under national jurisdiction.

Timeline

Year/Date	Event
1947	Federal Law of Games and Raffles (Ley Federal de Juegos y Sorteos) enacted, establishing the primary legal framework for gambling in Mexico. This law generally prohibits gambling, except for specific forms such as lotteries, raffles, and certain betting activities expressly authorized by the government.
2004	Regulation of the Federal Law of Games and Raffles (Reglamento de la Ley Federal de Juegos y Sorteos) comes into force, providing detailed rules for the operation and oversight of gambling, including the first regulatory provisions for casinos and the basis for online gambling tied to land-based operations.
2012–2013	Amendments to the Gaming Regulations clarify the use of electronic and skill-based gaming machines, and address some aspects of online and remote betting, though comprehensive online gambling regulation remains absent.
2013	Presidential decree establishes operational rules for gaming machines, further defining the regulatory environment for electronic gambling devices.
2021	New guidelines introduced for advertising, bonuses, and player loyalty programs, aiming to increase consumer protection and transparency for gambling operators.
November 16, 2023	Presidential decree published amending the Regulation of the Federal Law of Games and Raffles. The decree bans the operation of slot machines for new permit holders, reduces the maximum term of gambling permits from 25 to 15 years, and eliminates the sub-licensor structure, significantly impacting the industry.
2024	Public debate intensifies over the need for a comprehensive new gambling law to address technological advances and industry changes, but no new law is enacted. The government signals intent to propose new legislation to modernize the regulatory framework, though as of the end of 2024, no draft law has been presented to Congress.

Requirements

Software Certification and Technical Standards

Operators must submit detailed information about their technical infrastructure and gaming software for verification by the regulatory authority.
Gaming systems, including random number generators (RNGs) and betting platforms, must be robust, secure, and designed to ensure the integrity and inviolability of all betting transactions.
Internal control systems must be implemented to monitor, record, and safeguard all gaming transactions, ensuring traceability and preventing manipulation or fraud.
Operators are required to maintain up-to-date systems and software to support compliance with regulatory requirements, including the prevention of unauthorized access and data breaches.
There are no explicit, detailed technical standards for software certification in the current legislation, but the Ministry of the Interior (SEGOB) may require evidence of fairness and security, typically through independent testing or certification.

Data Protection, Privacy Measures, and Server Location

Operators must comply with Mexico’s data protection laws, notably the Federal Law on Protection of Personal Data Held by Private Parties, ensuring the confidentiality and security of all player data.
Personal and financial data of players must be collected, stored, and processed with appropriate technical and organizational measures to prevent unauthorized access, loss, or misuse.
Operators are required to implement secure data storage, encryption, and access controls on all sensitive information.
There are currently no explicit requirements for server location within Mexico; however, operators must ensure that data is accessible to regulatory authorities for inspection and audit purposes.

Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

Operators must implement robust AML procedures in line with Mexican anti-money laundering laws, including the identification and verification of all customers before allowing participation in gambling activities.
KYC procedures require the collection and verification of personal identification information, such as name, address, date of birth, and official identification documents.
Operators must monitor transactions for suspicious activity, report any suspicious or large transactions to the relevant authorities, and maintain records of such reports.
Ongoing monitoring of customer activity is required to detect and prevent money laundering or financing of terrorism.

Financial Reporting, Auditing Standards, and Record-Keeping

Operators are required to maintain accurate and complete records of all gaming transactions, customer data, and financial operations.
Regular financial reporting to the regulatory authority is mandatory, including detailed reports on bets placed, winnings paid, and overall financial performance.
Operators must submit to periodic audits by certified external auditors or as directed by the Ministry of the Interior (SEGOB).
Records must be retained for a minimum period specified by regulatory guidelines to ensure traceability and support regulatory inspections or investigations.

Technical Implementation Requirements for Responsible Gambling Tools

Operators must implement technical tools to promote responsible gambling, including mechanisms for players to set deposit, loss, and session limits.
Self-exclusion options must be available, allowing players to voluntarily exclude themselves from gambling activities for specified periods.
Warning messages and information about responsible gambling and support organizations must be displayed clearly on gambling platforms.
Systems must be in place to prevent access by minors and to verify the age of all participants.

Sources

Primary Regulatory Authorities

Secretaría de Gobernación (SEGOB) – Ministry of the Interior - Main federal authority responsible for gambling regulation in Mexico.

Legislation Resources

Diario Oficial de la Federación (DOF) – Official Gazette of the Federation - Official portal for all federal laws, decrees, and regulatory amendments, including those governing gambling.

Contact Information

Dirección General de Juegos y Sorteos (DGJS) Secretaría de Gobernación (SEGOB) Córdoba 42, Colonia Roma Norte, Alcaldía Cuauhtémoc, C.P. 06700, Ciudad de México, México Phone: +52 55 5128 0000 ext. 38200 Email: juegosysorteos@segob.gob.mx