Modernisation of gaming in Mexico drives billions in revenue
The gaming sector in Mexico generates billions of pesos annually, employs around 60,000 people directly, and attracts both domestic and foreign investment. However, this highly relevant economic activity is still governed by a Federal Law from 1947, which is outdated in terms of technological challenges and the current digital offering. The rapid growth of iGaming and sports betting presents new potential sources of tax revenue that could double tax collection if regulatory and fiscal policies are modernised.
Economic impact of traditional and digital gaming in Mexico
Currently, there are 38 licensees operating 423 land-based casinos in 30 states in Mexico, contributing 13 billion pesos in taxes each year, in addition to generating 60,000 direct jobs, according to data confirmed by local media and the Mexican gaming industry trade association (AIEJA). However, the actual size of the gaming market goes far beyond that. In 2024, iGaming reported revenues of $2.7 billion, with online casinos expected to grow from $160 million in 2017 to $1.29 billion by 2028. Sports betting also grew from $590 million to a projected $1.74 billion over the same period, driven in part by major events such as the 2026 World Cup. The true digital boom is strengthened by more than 100 million Internet users and growing mobile accessibility, which allows for increased betting through digital platforms. For example, live-streamed games alone already contribute more than 6 billion pesos in federal taxes each year.
Regulatory lag and tax evasion risks
Despite the sector’s economic weight, the Mexican market is governed by an outdated 1947 law that does not account for the existence of digital platforms, the technological evolution of payment methods, or eSports. This fosters a competitive climate with regulatory loopholes that encourage tax evasion, which is believed to occur in around 60% of cases involving online gambling, where wagers are made on websites without valid licenses. Official AIEJA statements indicate that the evasion may result in tax losses of up to 10 billion pesos annually, a significant amount that hinders the state’s capacity to collect taxes.
Progress towards a modern tax policy
Since November 2024, the Ministry of the Interior (SEGOB) and the AIEJA have formed a technical committee that meets every two weeks to draft a bill to replace the 1947 legislation. The focus is on unifying federal, state and municipal taxes under a single simplified scheme, as well as strengthening the supervision and regulation of digital platforms. The draft bill includes specific licences for iGaming, IP blocking systems for unauthorised sites and real-time age verification controls. Severe financial penalties and permanent closures for repeat offenders are also proposed. This policy seeks to promote formality, attract foreign investment and prevent legal operators from losing ground to unregulated offerings. It is estimated that fiscal unification could double current revenue, which already exceeds 13 billion pesos per year.
Potential to double tax revenues with clear rules
The economic potential of gaming, especially in its digital form, is enormous and is largely underexploited, primarily due to the lack of an adequate fiscal and regulatory framework. Mexico has a mature market with a massive digital infrastructure, more than 83% of the population connected, and rapid growth in sports betting and digital casinos. However, without a comprehensive update that establishes clear rules and single windows for permits, evasion will remain high and collection will be inefficient. With a new framework that promotes transparency and modern regulation, the industry could become a stable source of public revenue for different levels of government, doubling current figures and closing large tax gaps. The scenario favours a modern fiscal policy that ensures zero corruption and extortion, which are essential conditions for consolidating an ethical and competitive market.
The modernisation of gaming in Mexico is not only an economic issue, but also a necessity for effective public management and a competitive and secure business environment. According to AIEJA, the technical committee set up and the discussions at the National Palace mark a path towards a state policy that will undoubtedly require will and clarity to be fully implemented and capture all the available economic benefits.
This article was first published on 12 August 2025.
