1947 Act and its meaning

Shortly

Ley Federal de Juegos y Sorteos is the "skeleton" of Mexican gambling regulation for nearly 80 years. Basic logic: a general federal ban on gambling and betting, but with exceptions for central authority permits (SEGOB). That is why casino/betting licensing is still concentrated in the federation, not in the states.

Historical context and intent of the law (1947)

The law was published on 31 December 1947 in the Diario Oficial de la Federación. Article 1 enshrines a general ban on "chance games and betting games" throughout the country; further articles describe liability and exclusions. That is, you cannot play by default, unless the federation has specifically allowed specific formats/events.

Why so? By the beginning of the 20th century, Mexico experienced a boom in border casinos (Tijuana, etc.), and then a "sweep" of the 1930s. The 1947 law fixed a compromise: socially useful draws and strictly controlled formats - "yes," free casinos - "no." The logic "prohibited except permitted" is still valid and determines federal competence.

Who regulates: SEGOB and the Directorate of Games and Draws

Authorization, supervision and sanction powers are concentrated in Secretaría de Gobernación (SEGOB), through Dirección General de Juegos y Sorteos (DGJS). It is DGJS that issues/modifies/terminates permits, monitors compliance with conditions and applies sanctions according to the law and regulations. On the portal of the department, this is enshrined as the "first page" of the rules for citizens and operators.

2004 regulation: how the old law was "revived"

• Remote betting centers (CAR) for accepting sports/competitions bets;
• Number draw halls (analogue of bingo/electronic draws);
• general requirements for settlement currency, accounting, player protection, etc.
• It was the Regulation that turned the "framework ban with exceptions" into a working matrix of regulation.

For example, Art. 10 of the Regulations directly prescribes operations in national currency (MXN) - the norm was updated in November 2023.

What exactly "allows" and "prohibits" the link Law + Regulation

By default, gambling and betting are prohibited (Law, Art. 1), and any "betting games" and "draws" require explicit permission from SEGOB; exceptions - draws of the National Lottery according to its special regime.

The regulation defines the categories of licensed formats and general procedures (who can ask for permission, what documents, how payments are controlled, how promo is marked). Working line documents have also been published on the SEGOB website - for example, the procedure for coordinating promotions in CAR/draw halls.

DGJS is empowered with authorization, control, sanctions and termination of permits - this is confirmed in the DOF/portal documents themselves.

Judicial and administrative touches: why the federation is "more important"

Mexican courts have consistently confirmed that the core of regulation is federal: states can establish administrative/police frameworks (zoning, security, etc.), but cannot replace the SEGOB permit regime. Supreme Court Proceedings (SCJN) regularly address disputes over the limits of powers and details of Regulations/Permits.

Individual decisions and reviews of the industry also concerned the terms and conditions of permits, their administrative nature and standards of supervision - including discussions about the maximum duration and extension. The result for the business remains the same: the permission is federal, individual and conditional.

Evolution of norms after 2004

The 2004 regulation was updated several times (2012, 2013, 2023), updating the procedures and requirements (including the currency order, detailing the DGJS competencies, parameters for issuing and finalizing permits). A consolidated version with notes on all edits is available on the legal library of the Chamber of Deputies.

In parallel, SEGOB issued administrative acts and agreements on practical issues (federation participation shares, DGJS work procedure, complaint/sanctions processing, etc.), which is recorded in DOF cards.

Why the 1947 law still "holds the market"

1. Clear vertical. Centralization of permits at SEGOB ensures uniformity for operators and investors - one regulator, one "rule of the game."

2. Flexibility through the Regulation. Although the law itself is old, the Regulations and admin practices allow adapting the system to new formats (CAR, electronic draws, etc.).

3. Social mission and consumer protection. The mechanics of "exactly what is described in the permit is allowed" makes it easier to control payments, promo and fight fraud - an important DGJS focus for citizens.

What is important for the player and business to know "in practice"

Without SEGOB permission - it is impossible. Any betting/drawing venue must have a valid permit or operate in a format expressly prescribed by law (e.g. Lottery National).

Formats and terms - in the Regulations. Planning sports betting/raffle hall? Study the categories (CAR, halls of numerical draws) and the list of requirements from the Regulations.

The settlement currency is MXN. Operations in the national currency and compliance with AML/KYC requirements are the basic standard directly enshrined in the Regulations (Article 10, ed. 2023).

Promo and "special events" are consistent. For shares/events, CAR/in the halls has a separate approval procedure in SEGOB.

The Ley Federal de Juegos y Sorteos (1947) established a general ban on gambling with strictly federal exemptions on permits.

Reglamento 2004 turned the frame into a managed system: fixed facility views (CAR/halls), permitting procedures and DGJS credentials; norms were updated until 2023.

As a result, the center of gravity of regulation is still in SEGOB: issues/controls/authorizes; states supplement the regime with local admin rules, but do not replace the permissive system. For everyone on the market, that means federal compliance as an "entry point."

If you need to deploy a project in Mexico, it is worth starting with the text of the Law (1947), the consolidated Regulations and the practice pages of the DGJS - these are the "three whales" of the current regime.