Mexico’s outdated 1947 gaming law fuels illegal markets. Industry leaders call for new regulation to boost revenue, jobs, and player protection
Mexico’s gaming sector is pressing for a long-overdue update to its legal framework, as industry leaders, regulators, and government officials highlight the urgent need for reform, Arturo Rodríguez García reported in El Heraldo de Mexico. The outdated Federal Gaming and Raffles Law, in place since 1947, no longer reflects the realities of a sector transformed by digital platforms, iGaming, and a younger, tech-savvy consumer base.
The consequences of this legal stagnation are evident: gaps in regulation have created fertile ground for illegal operations, costing the state valuable tax revenues while undermining consumer trust. These concerns were front and center during the GAT Expo CDMX 2025 held in Santa Fe, where participants emphasized the importance of enacting a new law to bring order and stability to the industry.
The Land-Based Casino Market
Mexico’s land-based casino industry is valued at more than US$10 billion, employing over 200,000 people directly and indirectly. With approximately 400 gaming halls across 28 states, the sector contributes not only through taxation but also by driving activity in tourism, gastronomy, and live entertainment. For policymakers, establishing clear regulations for this ecosystem means securing reliable revenue streams while providing certainty for businesses and employees.
Online Market Growth
The online gaming segment has experienced accelerated growth, particularly in the wake of the pandemic. Between 2019 and 2024, revenues surged from US$600 million to US$2.7 billion, with projections suggesting the figure could exceed US$3 billion in 2025. However, an estimated 60% of the online market operates illegally, representing US$300 million in untaxed gains that bypass government oversight.
Key Government and Industry Dialogue
A pivotal step in addressing these issues occurred in late 2024, when Secretary of the Interior Rosa Icela Rodríguez met with licensees, operators, and industry leaders. Among those present were Miguel Ángel Ochoa, president of the Asociación de Permisionarios, Operadores y Proveedores de la Industria del Entretenimiento y Juego de Apuesta en México (AIEJA), and Alfonso Pérez Lizaur, head of the Asociación de Permisionarios de Juegos y Sorteos, A.C. (APPJSAC). Discussions recognized the importance of modernizing the law, ensuring a level playing field, and shielding the sector from corruption.
Calls for Balanced Regulation
Industry representatives stress that the greatest challenge is designing a regulatory framework for digital gaming that reduces informality, protects players, and strengthens tax collection. According to Ochoa, “The fight against illegal gaming requires rules that make it more attractive to remain legal. The experience of other countries shows that when taxes or restrictions are excessive, operators turn to informality.”
Mexico now has the opportunity to develop a balanced model, where regulation supports innovation rather than suppressing it. Other jurisdictions demonstrate that excessive restrictions can backfire, pushing businesses underground. Instead, Mexico can design legislation that encourages operators to remain within the legal system.
Growth Potential and Projections
The potential for expansion is clear. The number of iGaming players in Mexico rose from 1.5 million in 2017 to more than 4 million in 2024, and forecasts suggest the figure could reach 6 million by 2028. Online sports betting volumes doubled over the past seven years, while revenues from digital casinos increased eightfold.
For those in the sector, the stakes are high: modern regulation could mean higher tax revenues, less illegality, and stronger consumer protection. As stakeholders agree, the dialogue between industry and government must continue. The door to reform is open — but the responsibility now rests with Congress to translate this momentum into law.
