Mexican iGaming Market Still Waiting on Regulation

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Tuesday, March 28th, 2017 | Written by Stephen Smith

Although online gambling legislation in the United States has been slow going, regulation is expanding across much of the rest of the world. Most European nations, for instance, have either already regulated the industry, or are in the final phases of its introduction, while Latin American countries have also seen their iGaming markets soar, and have now expressed their willingness to see a regulated industry set up.

Mexico provides one such example, and while it is often overlooked in terms of its iGaming potential, a closer look at the state of affairs which exists in the country indicates that regulation could prove be a major boon for Mexico, as well as the online operators who would seek to become a part of the industry.

Mexico’s Grey Market

Mexico has a population of 120 million people, making it one of the most populous countries in Latin America, as well as the largest Spanish-speaking country in the world. Currently, online gambling is not regulated in Mexico, but it is not banned either, and as a result, international operators run sites in Mexico, and players are able to frequent its virtual tables.

Push for Regulation

After years of ignoring online gambling, Mexican lawmakers are finally taking notice of the industry, and there has been a push at the local level to begin regulating iGaming. Their motivation is similar to that of legislators in other countries; firstly, lawmakers hope that by regulating online gambling, they can provide protection for consumers, and secondly, and perhaps more importantly, regulation would allow cash-strapped governments to gain new income in the form of taxes on gross gaming revenue.

The push for online gambling regulation in Mexico isn’t just happening at the local level either, with Miguel Angel Ochoa Sanchez, the president of Mexico’s gambling regulatory agency, calling on lawmakers to take a close look at online gambling. He estimates that millions of dollars in tax revenue could be generated with the industry’s legalization and regulation based upon the size of the Mexican population, and the current levels of interest in gambling.

Current Bill on Hold

Lawmakers in Mexico have tried in the past to regulate the online gaming industry, and in 2014, a bill that provided a basic regulatory framework was passed in the lower house of the Mexican Senate. Industry insiders had high hopes that the legislation would then sail through and be signed into law, but unfortunately, the bill was seriously delayed. Although the bill is not officially dead, Sanchez has stated that he does not see it successfully passing until at least 2018 in its current form.

Operators Poised to Take Advantage

Although online poker regulation is likely still a ways off in Mexico, operators are already taking an interest in the country. A number of global operators have already established offices in the country, including some of those that are not currently offering their games in Mexico. It seems that these companies are positioning themselves to be ready to apply for licenses if and when they become available.

Operators Currently Active

Operators currently accepting Mexican players include Merkur Gaming, BetConstruct and Kambi. One can wager that PokerStars and other large international operators will be keen to follow their lead if the online Mexican gambling market is eventually regulated and starts offering online licenses.

In the meantime, the Spanish gambling operator Codere is offering an .mx website for Mexican players, in addition to the gambling halls it runs in Mexico, and the other business activities it conducts in Italy and its own domestic market of Spain. Furthermore, Codere recently announced a strategic partnership deal with Evolution Gaming to add Live Casino services to its Mexican website, whilst enabling players to gamble via their desktops, tablets, and smartphones. Comenting on the development, Codere’s CIO (chief information officer), Felipe Ludena Munoz explained:

“Evolution’s extensive experience in Live Casino market in Europe makes us feel confident that Codere will be extremely well equipped to launch best-in-class online Live Casino in Mexico and maximize immediate and future online Live Casino opportunities in this market.”

Of course, Evolution seemed equally as excited about extending its business to the huge, lucrative Mexican market, with Evolution’s Regional Director, Gionata La Torre, adding:

“We are of course proud and delighted to be working with Codere, a major global brand, for our first entry into this important new market. We very much look forward to introducing the richest, most exciting line-up of world-class Live Casino games to Codere players in Mexico.”