According to the latest market analysis report, the Mexican gambling industry is experiencing an unprecedented transformation period.
By 2024, the market size has reached 11.37 billion USD, and it is expected to soar to 40.64 billion USD by 2033, with a compound annual growth rate of 15.71%.
This growth is mainly due to the increased penetration of mobile internet, the booming development of sports betting, and the gradual improvement of the regulatory framework.
The regulatory environment is becoming increasingly strict
The Mexican gambling market operates under the framework of the Federal Gaming and Lottery Law (LJRS), which was revised in 2021 and further strengthened in 2023. The new regulations require operators to maintain a capital reserve of at least 2 million USD and implement geoblocking technology to prevent cross-border illegal betting. There is a significant difference in state tax policies, ranging from a 7% gambling tax in Jalisco to a tax-free policy in Quintana Roo, reflecting the different attitudes of local governments towards the gambling industry.
Rapid development of online gambling
Online platforms have taken a dominant position in the market, with a scale of 1.4 billion USD in 2024. This growth is due to an 82% smartphone penetration rate and low mobile data costs (only 8 USD per month on average). The main user group is young players aged 18-34 (accounting for 71%), who are attracted by the live broadcasts of the Mexican Super League and generous bonuses offered by platforms like Bet365. Notably, the demand for live dealer games has surged by 33%, with Evolution Gaming reporting that its exclusive Baccarat tables for Mexico have 500,000 monthly active users.
Mexico's 347 physical casinos are undergoing structural adjustments, with revenues in 2023 down 5% year-on-year to 1.4 billion USD. To cope with challenges, 22% of casinos have begun to increase non-gambling revenue sources, such as concerts and other entertainment activities.
Luxury resorts are performing well, with Grupo Caliente's Tijuana racetrack casino's VIP business growing against the trend by 14%, mainly due to cross-border tourist spending.
Sports betting leads growth
Football culture has contributed 39.51% of the market revenue. In 2023, the betting amount for the Mexican Super League spring season reached 2.1 billion USD, with an 18% increase during key match periods. As the 2026 World Cup approaches, international operators like DraftKings have begun to enter the Mexican market, with investments exceeding 52 million USD.
Data from the Mexican National Gambling Information Center shows that 2.3% of adults have a gambling problem, twice the global average. The government requires operators to allocate 1% of total gambling revenue to fund addiction clinics, but the effects are limited. Public opposition to the expansion of gambling is growing, with 49% of respondents opposing the construction of new casinos.
Future outlook
As 5G network coverage expands and blockchain technology applications deepen, the Mexican gambling market will continue to grow rapidly. However, how to balance between promoting industry development and preventing social risks will be the main challenge facing regulators and the industry. Issues such as the legalization process of cryptocurrency gambling, the application of artificial intelligence in anti-fraud, and balanced regional development will affect whether Mexico can achieve its goal of becoming a regional gambling center.
