Casinos in Mexico: A hybrid regulatory system

Casinos in Mexico: A hybrid regulatory system (full text)

1) Legal framework: why the system is "hybrid"

The base is set by the Federal Law on Games and Draws of 1947 (LFJS): by default, gambling is prohibited, but exceptions are possible with special permission (permit) of the federal government. The regulator is the Ministry of the Interior (SEGOB) through Dirección General de Juegos y Sorteos (DGJS).

The details of the work are enshrined in the Regulations for the LFJS (the current edition was published on November 16, 2023). It describes the types of permitted games, the procedure for issuing/extending permits, control and reporting requirements.

The online segment does not formally have a separate "digital" license: the practice has developed as linking an online site to a ground permit (the "skin "/white label model of the permit holder), which is why the Internet casino remains a zone with elements of "gray "regulation.

2) 2023-2024: Slot bans and rollbacks through the courts

November 2023: The Decree to the Regulations tightened the rules and actually banned slots for new permits (and when extended), reduced the terms and raised the requirements for applicants. The decree entered into force on November 17, 2023.

July 2024: a federal court in one of the cases found the ban unconstitutional, paving the way for the restoration of products (card/table games, etc.), and lawyers expected a broader revision of the restrictions on slots. The process went through successive lawsuits; the industry predicted the abolition of controversial norms.

Conclusion: the environment remains fluid: formal texts of 2023 exist, but their effect is limited to court decisions and subsequent administration of SEGOB/DGJS. It is important for operators to keep track of current practices in their particular permit/state.

3) How to access the market (high-level)

1. Permit (offline) at SEGOB/DGJS: legal structure in Mexico, compliance with the requirements for authorized capital/experience, internal policies of AML/KYC, technical circuit for accounting and reporting.

2. Online showcase through permite holder (skin model/co-branded) and DGJS notifications; own standalone license for online is not provided.

3. Regional alignments: Although the regulation is federal, there are local taxes and fees (e.g. on entertainment) at the state and municipal levels, as well as town planning/advertising norms.

4) Taxes and fees: what the operator pays

IEPS (special tax on production and services) for "juegos y sorteos": historically 30%, while in 2025 the federal authorities proposed raising the rate to 50% and extending it also to "digital casinos and companies without permanent representation." The discussion took place within the framework of the budget package/income law for 2026.

Plus standard ISRs (corporate income, 30%) and IVAs for services, as well as state/municipal fees (entertainment/advertising/signs, etc.). The specifics of the tax basket depend on the model (offline lounge, online skin, combined activity).

Practical effect: IEPS with bet/bet-payments is actually a "turnover tax" that puts more pressure on casino margins than the classic GGR tax; growth of up to 50% significantly worsens the economy of bonuses and RTP/limits.

5) Product and Player Rules

The age of participation is usually 18 +, KYC and local procedures for responsible play are required (self-exclusion is still more at the level of operator policies than a single state register).

Payments and reporting: anti-fraud, logging of sessions/rates, storage of data according to the requirements of the Regulations; DGJS may require access to accounting systems and game reports.

Advertising: limited by general consumer and media norms; after 2023-2024, the focus is shifted to warning about risks and avoiding aggressive mechanics, especially in local markets.

6) "Gray" contour of online and brand partnerships

Due to the lack of an online license as such, international. com brands enter through alliances with permit holders (co-branding/white label), placing the site in the MX/ES domain zone and indicating the permit of the local partner. Some foreign sites continue to operate "out of the field," but risk blocking ads/payments and claims to consumer practices.

7) What it means for the operator (roadmap 2025-2026)

Legal model: determine whether you are going as a permit holder (hard and long way) or as an online partner of an existing permit holder. Consider court plots by slot and current DGJS administration.

Finmodel: calculate margin taking into account IEPS 30% and scenario 50%; lay down local OPEX (cash discipline, audit), content certification and marketing costs.

Technique and RG: KYC/AML, logs, anti-fraud, transparent T&C, moderate bonus policy; train support in "early intervention" and case documentation.

8) Checklist for the player

1. Check who is behind the site: legal brands have a Permite number and a partner holder in Mexico.

2. Set limits and keep a history of transactions - this will help both for self-control and for payment proceedings.

3. Caution s.com without Mexican permite: formally, consumer protection and access to the regulator are weaker.

9) FAQ

Is online casinos legal in Mexico?

There is no separate online license; online showcase works as an extension of terrestrial permite through a partnership with its holder. Other schemes are "gray field."

Is the slot ban in effect?

The 2023 decree formally limited slots for new/renewable permits, but the courts in 2024 began to recognize this ban as unconstitutional, which partially rolled back the practice. The outcome depends on the specific case/remitter.

What are the key taxes?

IEPS special tax on games and sweepstakes (historically 30%, discussed 50%), plus federal/local business taxes. Check with your state and model.

Mexico is a federal "ban-plus-permit" model with an online link to offline. After the decree of 2023, the market entered the phase of judicial correction, and in parallel, the authorities are discussing raising the IEPS to 50%, which increases fiscal pressure. For the operator, the solution is in an accurate legal architecture (permit or partnership) and a careful product economy; for the player - in the choice of brands with transparent permit and self-control tools.