How to open an online casino in Mexico

Before diving into the logistics of launching an online casino in Mexico, it is essential to understand the country’s unique gambling landscape. It is shaped by a rapidly growing digital audience and a complex regulatory framework.

Mexico has one of the most promising online casino markets in Latin America. As of 2024, more than 15 million Mexicans actively participate in online gambling, driven by widespread mobile access and strong interest in sports betting.

Despite this rapid growth, the legal environment remains complex and is rooted in legislation dating back to 1947.

Mexico’s gambling industry is regulated under an older but still-enforced law: the Federal Games and Draws Law (Ley Federal de Juegos y Sorteos), which came into force in 1948. Despite its age, it remains the core legal framework governing gambling in Mexico today.

Online gambling is not explicitly regulated under this law but is generally considered legal under the 2004 Regulations.

In November 2023, Mexico’s president announced a gaming reform decree that repealed and amended Article 91 of the 2004 Regulations. Under this decree, new or renewed licensees would no longer be allowed to offer casino games online, while existing licensees could continue offering such games only until their current licenses expire.

However, several Mexican casino operators challenged the decree in January 2025 and were granted injunctions against the 2023 reform on the grounds that it was unconstitutional.

Key point: Online gambling in Mexico is not directly regulated, but both online casino games and sports betting are currently permitted.

Online casinos tied to land-based licenses

License holders could previously request authorization to jointly exploit their license with a sub-licensor through association agreements such as joint ventures, operating agreements, or other similar arrangements. The third party had to be a Mexican entity, with or without foreign capital.

However, amendments to the regulations introduced in November 2023 eliminated the sub-licensor structure. While this does not mean that existing sub-licensors have disappeared, the option is no longer viable for new ventures. Sub-licensors are restricted from:

• Acquiring corporate or administrative control of the license holder
• Becoming a beneficiary of the license holder
• Assigning the licensed operation to third parties

Gambling regulatory oversight in Mexico

The primary regulatory body overseeing gambling activities in Mexico is the Secretaría de Gobernación (SEGOB), specifically through its Dirección General de Juegos y Sorteos (DGJS).

SEGOB is responsible for issuing gambling licenses, monitoring operators, enforcing compliance, and overseeing player protection initiatives.

However, SEGOB does not currently issue licenses specifically for online gambling, which is an important nuance for any international operator looking to enter the market.

Launching a successful online casino in Mexico requires more than a strong business strategy—it also requires the right technology partner. Choosing a platform provider with a proven track record is essential for both a successful launch and long-term growth.

It is critical to use robust, scalable, and fully compliant software that can meet the requirements of operating under a Mexican land-based casino license.

From Spanish-language support to local legal integration, any chosen platform must align with Mexico’s regulatory, technical, and cultural environment to ensure a smooth and compliant launch.

Why platform localization matters

To compete effectively in the Mexican online casino market, a platform must be fully localized in the following ways:

• A high-quality Spanish-language interface
• UX/UI tailored to regional user behavior
• Mobile-first design to match the growing number of Mexican mobile players
• Games and promotions that reflect local tastes and Mexican cultural preferences

Localization for the Mexican online casino market is not just about translating text into Spanish—it is about creating an experience that feels native to local players. Failure to fully localize your offering can lead to slow growth or, at worst, rapid failure.

Top-tier game integration

Today’s players expect variety, so any platform should support easy integration of the following features to enhance engagement and retention:

• RNG (Random Number Generator) games: such as slots and table games
• Live casino experiences: increasingly popular across Latin America
• Sportsbook: especially focused on football, boxing, and baseball, which are very popular in Mexico

Robust back-end infrastructure

A strong platform back end is just as important as the front end and should include:

• KYC and AML tools to remain compliant with local and federal requirements
• A built-in CRM system for personalization and customer lifecycle management
• Affiliate management tools to support player acquisition
• Analytics and reporting dashboards to optimize performance

Mexico’s payment ecosystem is more diverse than in many other Latin American markets and requires platforms to implement tailored solutions. Popular payment methods among local online casino players include:

• Credit and debit cards: Issued by Mexican banks
• OXXO: Cash-based retail vouchers
• SPEI: Real-time local bank transfers
• E-wallets: such as PayPal and Mercado Pago

Working with local payment service providers that understand the intricacies of Mexican banking systems and consumer behavior is the most effective approach.

Doing so ensures that transaction systems are secure, PCI-compliant, and aligned with local financial regulations. Reducing friction in the payment process is critical for building credibility with Mexican players and driving long-term growth.

Careful planning is required before marketing an online casino in Mexico, given the legal restrictions surrounding gambling promotion. Gambling advertisements are permitted only if the operator has obtained the necessary authorization from SEGOB and must not be misleading or target minors in any way.

Popular marketing channels

Despite the restrictive nature of casino advertising in Mexico, operators can use a strategic mix of the following channels to reach their target audience.

Social media: Platforms such as Facebook, Instagram, and TikTok are widely used in Mexico and are ideal for targeted marketing campaigns. Operators should review each platform’s gambling advertising policies in Mexico to ensure compliance.

Influencer marketing: This channel is rapidly gaining popularity in Mexico and offers a culturally authentic way to build trust and awareness.

Affiliate marketing: Affiliates remain one of the most cost-effective channels for player acquisition. They allow operators to tap into established networks using performance-based models focused on registrations and player acquisition.

Cultural relevance is key

To succeed in the Mexican market, an online casino’s marketing must go beyond simple translation—it needs to feel truly local. This means using authentic Mexican Spanish, reflecting local customs and values, and tapping into themes that evoke national pride and passion.

Aligning casino marketing campaigns with the following events and festivals is an effective way to achieve this:

Liga MX football matches: Especially major rivalries such as América vs. Chivas

Lucha libre events: A true cultural staple with strong fan loyalty

Mexican independence day: Celebrated on September 16

Día de los muertos: The Day of the Dead, a deeply rooted and widely celebrated tradition

Las posadas and Christmas: Important seasonal moments for festive promotions in December

El buen fin: Mexico’s equivalent of Black Friday, ideal for limited-time offers

Incorporating culturally familiar imagery, humor, and locally relevant incentives into casino messaging can help build trust and increase engagement with Mexican players.

Understanding the financial and tax obligations in Mexico is essential for any provider looking to operate a compliant and profitable online casino. The country applies multiple layers of taxation that operators must consider when entering the market.

Gambling-specific taxes

As a general rule, operators are subject to a 30% tax on Gross Gaming Revenue (GGR) under Article 2o, Section (II)(B) of the Production and Services Special Tax Law of 1980.

Player winnings are treated as taxable income at the federal level at 1%, with additional taxation applied at varying rates depending on the state.

Corporate income tax

All Mexican companies, including those operating online casinos, are subject to Corporate Income Tax (CIT) at a standard rate of 30%. Establishing a legal entity in Mexico means this tax applies to a platform’s net profits after allowable deductions.

License holders and/or sub-licensors must also pay a fee to the Gambling and Raffles Bureau, ranging from 1% to 2% of their income derived from all bets.

Mexico is rapidly emerging as one of Latin America’s most exciting iGaming markets. With a large, mobile-savvy population and strong demand for casino games and sports betting, the market offers significant growth opportunities.

However, launching an online casino in Mexico requires navigating the country’s hybrid regulatory framework and localizing your platform, payments, and marketing to meet the expectations of Mexican players.

One of the fastest and most efficient ways to launch is by partnering with a technology provider that understands the market. This is where Agreegain can help. Take the first step toward a confident, compliant, and competitive launch in one of Latin America’s most promising iGaming markets.