MEXICO Law and Practice Contributed by: Carlos Fernando Portilla Robertson and Ricardo Valdivia González, Portilla Ruy-Diaz y Aguilar
1. Introduction 1.1 Current Outlook and Recent Changes The cornerstone of the Mexican gambling regulatory framework is the Federal Gaming and Raffles Law (the “Gaming Law”), which was published in 1947 with only 17 articles. This minimal content reflects the historical context of 1947, which was long before the advent of the internet and social media, making it insufficient to address modern-day realities. For 57 years, the Gaming Law remained the sole legal framework governing gambling in Mexico. The lack of comprehensive regulation led to uncertainty and allowed the continuous opening of land-based establishments, often protected by constitutional court rulings. To address these regulatory gaps, on 17 September 2004, the Mexican government issued the Regulations of the Federal Gaming and Raffles Law (the “Gaming Regulations”) to supplement the original 1947 law. The Gaming Regulations were reformed in 2012 and 2013, but despite these updates, technological advancements in the gaming industry have outpaced the existing legal framework. For example, the Gam- ing Regulations include only three articles addressing online, telephone or electronic betting, while the online gaming industry in Mexico has expanded significantly, with increasing numbers of operators, service provid- ers and participants. This demonstrates the need for further reforms to adapt to the current technological landscape. As mentioned in 1.1 Current Outlook and Recent Changes , the Gaming Regulations in Mexico do not clearly refer to online gaming activities. The current regulatory framework contains only three articles that address the placing of bets electronically or via the internet. Under the Gaming Regulations, online gambling is closely linked to land-based casinos. Specifically, Arti- cle 85, which pertains to sports books, stipulates that 2. Jurisdictional Overview 2.1 Online Gambling
authorised casinos are permitted to take bets via the internet, telephone or electronic means. However, to operate in this manner, permit holders must implement a robust internal control system for transactions. This system must include procedures and rules designed to ensure the inviolability and integrity of their betting systems, as well as compliance with other regulatory requirements. These safeguards are critical to main- taining the legality and reliability of online betting tied to land-based operations. Additionally, Article 104 mandates that participants who are attracted or registered through the internet or a telephone network must be identified through a registration system. These provisions highlight a sig- nificant legal gap, reinforcing the need for a reform of the law to introduce a dedicated chapter that clearly and expressly regulates online gambling in Mexico. 2.2 Land-Based Gambling According to Mexican law, all games involving bet- ting must obtain authorisation from, and are subject to control and supervision by, the Ministry of the Inte- rior ( Secretaría de Gobernación , or SEGOB), including the list of games with bets outlined in Article 2 of the Gaming Law. These games include chess, draughts and similar games; dominoes; dice; blackjack; bowl- ing; billiards; football; and, in all their variations, races involving people, cars and animals, along with a broad category encompassing all types of sports. Therefore, land-based casinos and online gaming are permitted. In Mexico, there are 36 land-based permit holders that are, or could be, allowed to operate online gaming. A land-based casino in Mexico typically covers activi- ties such as bingo, raffles and slot machines, but not always online gaming or live gaming (such as poker and roulette). Permit holders must request special authorisation from SEGOB to offer these additional services if the original permit granted does not refer to or allow such activities. This ensures that any expan- sion of gaming activities beyond the standard offer- ings is closely regulated and supervised. Notwithstanding that certain games – such as live gam- ing, poker and roulette – are not expressly described
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