Mexico's online gambling market is growing faster than its regulatory framework can keep up. Mordor Intelligence estimates the market will reach $970 million by 2026, with annual growth of 8.6% through 2031. Payment provider STP reports that betting volumes during the 2025 FIFA World Cup were four times higher than during the Qatar tournament.
The industry operates under 1947 legislation amended in 2004 and 2023. That foundation does not address the technical and player-protection demands of modern online gambling. "There is a lack of political will," says Andrea Avedillo, a lawyer at Lazcano Sámano. The issue remains politically toxic: reform proposals appear regularly but never leave committee.
In February, Mexico City Congressman Alberto Martínez Urincho proposed biometric verification to block minors, a ban on advertising during sports broadcasts, and limits on celebrity endorsements. His bill would also prohibit welcome bonuses and betting on political events or disasters. The chances of passage are low. A city-level initiative must clear local approval before reaching the federal Congress.
Miguel Ángel Ochoa, president of industry association AIEJA, says around 60% of online gambling in Mexico is unlicensed. Since January 2026, the federal IEPS tax on iGaming rose from 30% to 50%, and all platforms must register with the tax authority. Ochoa argues the problem is not the tax rate but legal uncertainty: operators cannot plan without a clear framework.
"The need is not more regulation but better regulation," Avedillo says. While dialogue between government and industry remains limited and political will is absent, the market will continue as it is.
