The opportunity for the Mexico gambling market means it’s the “new American dream”, Kingsbet general manager Ana Paula Pinto tells iGB
This year could be a key one in the history of gambling in Mexico, with long-awaited reforms expected, but also a new tax rate of 50% having been implemented in January.
Further adding to the anticipation is the 2026 World Cup, which will be co-hosted by Mexico and offers huge opportunity to gambling operators in the market.
Gambling in Mexico is largely regulated by an 80 years old system of laws. Online betting is legal through an interpretation of those laws, rather than being explicitly authorised via its own regulatory framework. However, reform is expected this year, though the timeline is unclear.
When it arrives, Paula Pinto believes the opportunity for operators to innovate could be enormous.
“There’s a lot of opportunity,” Paula Pinto said. “We have a lot of very prestigious casinos here that are very established. But the offering is almost always the same. They don’t change.
“There’s opportunity for something different and, because we are a very, very large country, there’s a lot of different prospects. For me, Mexico is the new American dream.”
When will reform happen?
Carlos Portilla Robertson, partner at Mexican law firm Portilla, Ruy-Diaz and Aguilar, is confident there will be a new law in 2026 that will authorise all forms of gambling.
In his view, this will prove hugely beneficial to the Mexico gambling sector. “We’re waiting for that law, but I’m positive that it will be a good law,” he adds.
“I think it’s going to be better than how things are working for the industry at the moment.”
However, Paula Pinto is less sure of the timing, noting other policy matters are likely to take presendence in Mexico.
“Legislators have other priorities, so while the law may be presented, its passage within that timeframe is far from certain,” she says.
“The current gambling system is outdated but it does work, so given other issues facing Mexico, it could be deemed less of a priority.”
Tax rises could lead to rise in illegal market activity
Thanks to a 2026 fiscal reform package, operators in Mexico now face a 50% tax on gross gaming revenue, up significantly from the previous 30% rate.
Portilla warns this could drive business to the black market. While Paula Pinto disagrees with tax rise, she does believes Mexico remains an attractive market for operators, especially with other LatAm markets facing high barriers to entry.
“It’s a high tax, but it’s a very large country with which you can have a lot of layers and also, it’s a country that protects you as a permission holder and as a consumer,” Paula Pinto adds. “So I think that is an equilibrium.
“Let’s say, compare it to other countries in Latin America that do not have regulation protecting people or countries where it’s very expensive to establish a gambling business. For example, in Costa Rica, in order to have a casino, you need to have a hotel or a restaurant attached and they do not have any regulations permitting online casinos
“Similarly, in Brazil, you need $10 million to have a permit, which is a new rule for the last year. So they maybe don’t have as high a tax rate, but it’s a lot more complicated to operate.”
These interview snippets are taken from from iGB’s Mexico market intelligence report, produced in partnership with Gamingsoft. The report is available for download now.
Mexico’s gambling sector is at a crucial juncture, but the industry is hopeful that a new law will provide a huge boost, despite a painful tax increase.