Mexican Gambling Industry Clamors For Regulatory Reforms Ahead Of World Cup

Mexico’s gambling sector calls for quicker implementation of reforms by authorities to its regulatory framework prior to the 2026 FIFA World Cup. 

Industry stakeholders say the current system is over eight decades old and delays could limit the country’s ability to capture economic opportunities. The sector seeks a modern structure to support land-based and digital gambling activity.

Legacy law struggles to address modern market

Mexico’s gambling industry is still governed by the Federal Law on Games and Raffles, introduced in 1947. The law contains just 17 articles and was designed for a pre-digital environment.

Over time, gaps in the framework have been addressed through court rulings rather than legislative updates. While this has allowed land-based operations to expand, newer segments such as online betting, esports and mobile gaming remain loosely defined.

Regulation is handled at the federal level by the Ministry of the Interior (Secretaria de Gobernacion). This centralised structure has slowed reform, as changes depend on shifting national priorities and not industry trends.

The president of the Mexican Association for Permit Holders, Operators and Suppliers of the Entertainment and Gambling Industry, Miguel Ángel Ochoa Sánchez, said the market is “insufficiently regulated,” particularly online. A draft framework was expected to be presented during the legislature’s first 2026 session, but progress has stalled.

Growth potential and the effects of regulatory uncertainty

Mexico’s gambling market is valued at close to $1 billion in 2026. According to Mordor Intelligence, online betting will grow at a compound annual rate of 15% through 2031, driven by mobile adoption, internet access and demand for sports betting.

Football, boxing and esports continue to lead betting activity, while land-based casinos maintain a steady presence. Digital platforms are expanding faster, gradually taking share from traditional formats such as lottery and bingo.

Furthermore, activity varies across regions. Northern cities near the US border show higher engagement, while Mexico City is a hub for online betting activity and regulatory discussions. Southern regions are also seeing increased adoption of mobile platforms.

Despite strong growth indicators, regulatory uncertainty is creating friction. Ed Birkin, managing director at H2 Gambling Capital, warned that delays could deter foreign investment and reduce opportunities tied to sponsorships and partnerships around the World Cup.

Reform efforts slowed by political gridlock

In December 2024, President Claudia Sheinbaum announced plans to introduce a new Federal Law on Games and Raffles. The Ministry of the Interior was tasked with drafting the legislation, with industry working groups formed in early 2025.

Political divisions within the legislature and competing priorities have delayed the process, leaving reform efforts unresolved.

Mexico now faces increasing pressure to modernise its framework. Other markets in the region have already moved ahead. Colombia has established a more developed regulatory model, while Brazil is advancing reforms to reshape its market. For the US and Canada, decentralised systems drive faster adaptation but create regulatory patchworks.

Without legislative progress, Mexico risks falling behind as global and regional competitors adapt to evolving gambling trends.

The gambling industry in Mexico is pushing authorities to implement new reforms. Their aim is to modernise the country’s regulatory framework and explore revenue from online gaming. Hopefully, these measures are in place before the 2026 World Cup.