Mexico’s Centralized Gambling Framework

Mexico’s gambling sector operates under a centralized federal regulatory structure anchored in the Federal Law on Games and Raffles, originally published in the Diario Oficial de la Federación on December 31, 1947.

The legal framework remains materially different from state-based systems. Mexico does not assign primary gambling oversight to individual states. Gambling authorization is handled at federal level through the Secretaría de Gobernación, commonly known as SEGOB, and its Dirección General de Juegos y Sorteos.

The core legal principle is restrictive. Games of chance and games with betting are prohibited unless they are authorized under the federal framework. This makes Mexico a permit-based market, not an open licensing market.

That structure defines how betting facilities, gaming rooms, raffles, contests and related promotional gaming activity may operate. The federal model also creates a direct link between gambling authorization, administrative supervision and anti-money-laundering obligations where gambling-related transactions fall within Mexico’s financial-crime framework.

Legal Foundation: 1947 Law, 2004 Regulation and 2023 Reform

Mexico’s gambling framework rests on three core layers.

First, the Federal Law on Games and Raffles provides the statutory basis. The law establishes the prohibition-and-authorization model and gives federal authorities the power to control games with betting and raffles.

Second, the Regulation of the Federal Law on Games and Raffles, published in 2004, provides the administrative framework for implementing the law. The regulation confirms that regulated activities fall within federal competence and that SEGOB is responsible for the administrative interpretation and application of the law and regulation.

Third, the federal government published a decree on November 16, 2023 reforming, adding and repealing provisions of the 2004 regulation. This is material because it shows that Mexico’s gambling framework continues to be adjusted through federal regulatory amendments, even though the primary statute remains the 1947 law.

For market participants, the key point is clear. Mexico’s framework is old at statutory level, but active at regulatory level. Operators cannot assess the market by reading the 1947 law alone. The 2004 regulation and later amendments, including the 2023 decree, are essential to understanding the current supervisory architecture.

Regulatory Authority and Institutional Structure

Mexico’s gambling oversight is concentrated within the federal government.

SEGOB’s public materials state that games with betting and raffles, in all modalities, require express authorization from the Ministry, except those carried out by Lotería Nacional.

This confirms the operating logic of the market. Authorization is federal, not regional. A gambling venue, betting operation or raffle structure must be analyzed through the permit and authorization framework administered by federal authorities.

Authorization Through Federal Permits

The Dirección General de Juegos y Sorteos is the administrative unit that handles the permit framework for games and raffles.

Its functions include receiving and processing applications, reviewing documentation, analyzing whether requests meet the Federal Law on Games and Raffles and its regulation, and supervising compliance with permit terms and conditions.

This is the central distinction between Mexico and decentralized gambling jurisdictions. In Mexico, a market participant does not build its regulatory position through separate state licences. It operates within a federal authorization model administered through SEGOB.

In practice, certain gaming-room and betting operations have been structured by reference to categories governed under the 2004 regulation, including remote betting centers and gaming rooms. Any such activity must be assessed by reference to the precise permit, the authorized activity, the applicable permit conditions and the current regulation.

Permit Holders, Operators and Market Structure

Mexico’s gaming market can distinguish between permit holders and operating entities.

Federal permits are granted under the SEGOB framework. Operational arrangements may involve companies that manage venues, betting operations, technology or commercial activity in connection with a permit holder.

For international companies, market participation depends on the legal status of the local permit structure and the contractual relationship with the authorized entity. The critical due-diligence issue is not only whether a brand is active in Mexico. The more important question is whether the underlying activity is covered by valid federal authorization and whether the operational structure remains within the scope of that authorization.

This makes permit verification central to market-entry, acquisition, partnership and compliance review involving Mexico.

Scope of Authorized Gambling Activities

Under the federal framework, gambling-related activities may be allowed only where they are authorized.

The regulated scope may include:

• Games with betting
• Betting facilities
• Authorized gaming rooms
• Raffles
• Contests
• Promotional prize draws
• Related activities operating under federal permits or authorizations

These activities must stay within the scope of the relevant permit and regulatory framework. The existence of commercial gambling activity in the market does not, by itself, establish lawful authorization. The controlling question is whether the activity is covered by federal authorization under the applicable legal and regulatory framework.

The 2023 Reform and Product-Scope Risk

The November 2023 decree is a major reference point for current analysis of Mexico’s gambling sector.

The reform amended the Regulation of the Federal Law on Games and Raffles. Its importance is not only technical. It confirms that federal authorities are using regulatory amendments to narrow, define or adjust the treatment of certain gambling products and permit structures.

For operators and investors, this creates a clear regulatory lesson. Mexico cannot be treated as a static legacy market. The primary law dates back to 1947, but the operating framework can still change through federal regulatory action.

Any assessment of gaming rooms, machine-based products, betting facilities or commercial operating agreements must therefore include review of the 2023 amendments and any permit-specific conditions issued under the SEGOB framework.

AML and Financial-Crime Oversight

Mexico’s gambling framework does not sit alone. It interacts with the country’s federal anti-money-laundering regime.

Under the Federal Law for the Prevention and Identification of Transactions with Resources of Illicit Origin, certain activities linked to games with betting, contests and raffles are classified as Actividades Vulnerables.

This includes, within the statutory framework, activities connected to the sale of tickets, chips or similar instruments, payment for those instruments, delivery or payment of prizes, and certain related financial operations.

The practical result is that authorized gambling activity may carry both gambling-law obligations and AML obligations. Operators and permit-linked businesses must therefore assess two separate layers:

1. Whether the gambling activity is authorized under the SEGOB permit framework.
2. Whether the related transactions trigger identification, notice or other AML obligations under LFPIORPI and its rules.

For regulated-market analysis, this is the critical intersection. Gambling authorization determines whether the activity may operate. AML classification determines how covered financial interactions must be identified, monitored and reported.

Lotería Nacional and the Separate Lottery Framework

Lotería Nacional is not the same as a private permit holder under the SEGOB gambling-permit framework.

SEGOB materials distinguish games with betting and raffles that require SEGOB authorization from those carried out by Lotería Nacional. This means Mexico’s gaming sector should not be described as one uniform market.

Private gambling and betting activity, authorized raffles, public lottery activity and AML-supervised transactions all sit in related but distinct regulatory lanes.

Digital Market Pressure

Mexico’s framework was built before the modern digital gambling economy.

The 1947 law was not designed for online betting platforms, digital gaming products, mobile-first customer acquisition, cross-border technology infrastructure or real-time payments. The 2004 regulation and later amendments provide the main administrative bridge between the older statute and the modern market.

That creates structural pressure. Digital products must be interpreted through a federal legal framework that was not originally built for them. This increases the importance of permit scope, administrative interpretation, compliance documentation and direct verification with the competent federal authority.

The market risk is not only whether demand exists. It is whether a specific product, operating structure or technology model fits within the authorized federal framework.

Regulatory Risks for Operators and Investors

Mexico remains a material jurisdiction for regulatory and market-entry analysis, but the regulatory risk is structural.

The main risk points are:

• reliance on an old primary statute;
• dependence on federal administrative interpretation;
• permit-specific operating limits;
• uncertainty around digital product treatment;
• exposure to AML obligations for covered gambling-related transactions;
• potential impact from regulatory amendments such as the 2023 decree;
• the need to verify whether commercial operators are acting within the scope of valid federal authorization.

This is especially important in M&A, market-entry and partnership reviews. A commercial brand may have market presence, but the legal value of that presence depends on the permit structure underneath it.

Global Regulation Table — Mexico Scope

Conclusion: A Federal Permit Market Under Modernization Pressure

Mexico’s gambling sector remains defined by federal control.

The legal foundation is the Federal Law on Games and Raffles. The operational framework is shaped by the 2004 regulation and subsequent federal amendments, including the 2023 reform. SEGOB, through the Dirección General de Juegos y Sorteos, remains the central authority for authorization and supervision of games with betting and raffles, except activities carried out by Lotería Nacional.

For operators and investors, the key issue is not whether Mexico has gambling demand. The critical issue is whether each activity is properly authorized, whether the permit structure supports the business model, and whether covered transactions comply with Mexico’s AML regime.

Mexico is therefore best understood as a federal permit market under modernization pressure: legally centralized, commercially active, and increasingly exposed to the tension between legacy statutes and digital gaming models.

Verified Sources

• Cámara de Diputados, Federal Law on Games and Raffles
• Cámara de Diputados, Federal Law on Games and Raffles reference page
• Cámara de Diputados, Regulation of the Federal Law on Games and Raffles
• Cámara de Diputados, Federal regulations index
• Diario Oficial de la Federación, November 16, 2023 edition
• SEGOB / Juegos y Sorteos, Marco Jurídico
• SAT, AML Portal for Juegos y Sorteos
• SAT, AML thresholds for Actividades Vulnerables