Why Mexico is becoming a Latin gambling hub

1) Legal context: old skeleton + new dynamic

The base of the industry is the Federal Law "On Games and Draws" of 1947 (LFJS) and the Regulations thereto. Historically, the market operates through permisos of the Ministry of the Interior (SEGOB). Online is almost not directly described in the law - it is inscribed in practice and by-laws.

In November 2023, a decree was published that sharply tightened the offline segment (in particular, banned new permits for slot machines and changed the order of a number of procedures); entered into force on November 17, 2023.

Against this background, in 2025, the authorities publicly confirmed the course towards rewriting the 1947 framework - with separate norms for online, consumer protection, advertising restrictions and RG obligations. The preparation of the text is coordinated by SEGOB.

Inference. Yes, Mexico still lives with the "old" law, but the trajectory is clear: tightening offline and formalizing modern online rules. This is important for the hub: investors see a movement towards predictability, and not towards the "gray zone."

2) Payment ecosystem: affordability> abundance

Mexico's strength is payment accessibility for the mass audience. Along with cards and wallets, cash and voucher flows through OXXO (22,000 + points) play a key role: OXXO Pay provides about half of all cash and voucher e-commerce payments in the country and acts as a bridge between cash and online.

The market remains unbiased (tens of millions - without an account), which makes fintech channels and vouchers critical for onboarding: that is why Mexico is called a "laboratory" for dLocal, Nu and other payment players, and e-commerce is growing faster than offline transactions.

In parallel, studies show an acceleration in the adoption of non-cash technologies and the effect of networks (POS terminals pull the demand for cards, and mass debit programs - supply). For operators, this means expanding the ARPU funnel without breaking the UX.

Inference. Where many LatAma countries have a "bottleneck" of payments, a whole "escalator" of onboarding has been formed in Mexico: cards/wallets/SPEI + OXXO vouchers.

3) Sports, media and affiliates: there is traffic, it must be disciplined

Mexican sports are a magnet for advertisers, and betting sponsorships are one of the fastest growing segments in the region: according to data for 2024-2025, LatAm shows a multiple increase in the share of betting brands in football partnerships (Argentina, Brazil and Mexico are key drivers).

Legally, marketing largely lives according to general civil-commercial standards, and not according to the "special" advertising code for sports - which gives space for transactions, but at the same time increases the requirements for self-regulation among operators (tonality, age filters, fair presentation of bonuses).

Inference. There is traffic (football, streaming, influencers), but it is the brand's self-discipline that is the best insurance before and after the reform.

4) Why exactly Mexico is a "hub" and not just a big market

1. Audience scale + payment ladder. Combos of cards/wallets/SPEI and OXXO Pay allow you to connect both "digital" and "cash" users - this is rare even by LatAm standards.

2. U.S. neighborhood and export practices. Media/betting content, RG analytics, anti-fraud - all this penetrates the Mexican stack faster than in many southern markets.

3. Institutes and fintech. Mexico is one of the pioneers in regulating fintech, which has lowered barriers for PSP/aggregators and increased confidence in online payments. (See trends in map and POS infrastructure penetration.)

4. Regulatory trajectory. The authorities demonstrate "toughness where necessary" (offline slots) and willingness to issue a modern online (reform announcement) - a convenient configuration for a long horizon.

5. Media market and sports. Football and streaming give the operator a "shortcut" to recognition - subject to compliant marketing.

5) What does this mean for the operator (practical plan)

Entry strategy.

Work strictly within the perimeter of the existing permiso SEGOB; monitor the extension and conditions - after the decree-2023, new "slot" windows do not open.

Design an online circuit in advance for the expected reform requirements: a full set of RGs (limits/self-exclusion/reality checks), KYC/AML (IDV, sanctions/PEP, SoF/SoW triggers), independent content certification and immutable logs.

Payments and UX.

Give the user "steps": cards/wallets/SPEI + OXXO Pay; optimize onboarding for "cash → online" (voucher - office - repeated deposits by card).

Track the trend of "shift from cache": the penetration of cards and wallets is growing - this is the basis for reducing fraud and chargebacks.

Marketing and affiliates.

Be "stricter than the law": age filters, prohibition of promises of "quick money," a library of approved creatives, verification of affiliates and rejection of dark patterns.

In sports - transparent contracts and contributions to RG programs (messages, limits, responsible sponsorship).

Risks and reserves.

Budget for legal updates (reform = migration of policies/processes), as well as payment reserves - while the cache share is large, the burden on anti-fraud is above the regional average.

6) What it means for providers (B2B)

Content/aggregation: demand for certified slots/tables and live channels with built-in RG functionality (reality checks, limits).

Payments/anti-fraud: local PSP with OXXO-terminal, card re-payment module, behavioral scoring.

Marketing technologies: tracking affiliates, creative library, copyright auto-operation for future requirements.

7) Short compliance checklist (before reform and after)

1. Permiso SEGOB and re-certifications roadmap.

2. KYC/AML/RG "as in EU": IDV + liveness, sanctions/PEP, SoF/SoW on triggers; limits/self-exclusion/reality checks.

3. Content certification and change-management with unchangeable logs.

4. Payment matrix: cards/wallets/SPEI + OXXO Pay; monitoring chargeback/alerts.

5. Marketing and affiliates: age 18 +, honest bonuses, prohibition of "quick money," sports - only compliant deals.

Mexico is becoming a hub not because of one factor, but because of the addition of several: a mass audience, a rarely convenient payment ladder (including OXXO Pay), a media and sports showcase and a reform agenda that promises clear online rules. For operators, this is a chance to take a share before the final "crystallization" of the regime, and for providers - a market where local payments, honest UX and mature compliance are in demand. Those who have all this will become the beneficiaries of the Mexican "hub."