Gaming License in Mexico: 2026 SEGOB Requirements, Costs & Market Entry Guide

The Regulatory Authority: SEGOB and the DGJS

SEGOB (Secretaría de Gobernación) is the federal ministry responsible for gaming regulation in Mexico. The operational licensing function sits within DGJS (Dirección General de Juegos y Sorteos), the specialized directorate that issues gambling permits, conducts compliance assessments, and manages ongoing operator oversight.

The legal foundation is the Federal Law of Games and Lotteries (1947), which governs all land-based and online gambling activity. The 2004 Regulations introduced the framework for online gambling, authorizing digital operations as an extension of existing land-based licenses rather than as a standalone category. Mexico has not enacted a standalone online gambling law. The 1947 statute, amended periodically, remains the governing text. This architecture means online licensing is always derivative of a land-based permit, a structural feature that defines how foreign operators must enter.

The Secretariat of Finance and Public Credit (SHCP) operates separately from SEGOB and DGJS. Its role includes AML enforcement across all regulated industries, including gambling. Operators must comply with both DGJS licensing requirements and SHCP AML reporting obligations, which require submitting formal notices (Avisos) for specific transaction thresholds. These are parallel obligations, not alternatives.

November 2023 Regulatory Reform

The November 2023 reforms made four material changes:

• Slot machines were banned from casino premises in a contested regulatory action, currently subject to legal challenges by operators;

• Slot-style machines in non-casino venues (pharmacies, convenience stores) were prohibited;

• Minimum distance requirements from schools and health centers were introduced;

• Sub-licensing arrangements were ended. Foreign operators who had previously entered Mexico by sub-licensing from a DGJS holder no longer have that route available.

The sub-licensing change is the most significant structural shift for foreign operators. The entry route is now partnership or investment.

2025 to 2026 Legislative Reform

In September 2025, SEGOB head Rosa Icela Rodriguez Velazquez announced a comprehensive reform of the gaming framework. Congress submission is expected by early 2026. Operators evaluating Mexico should note that a 50% IEPS excise tax on games with bets and draws is already in effect, not pending. This 50% rate explicitly applies to games with bets and draws that are realized through the Internet by foreign residents without an establishment in Mexico.'

Types of Gaming and Gambling Licenses Issued by DGJS

DGJS issues five categories of gambling permits. The type relevant to any given operator depends on their business model.

State restrictions: Casino operations are prohibited in Baja California Sur, Coahuila, Guanajuato, Nuevo Leon, and Tlaxcala. Operators must account for this in any national rollout plan.

No standalone online gaming license exists. Online operations are authorized only as an extension of an existing land-based casino or sportsbook license. There is no application for an internet-only gambling permit in Mexico as of 2026.

B2B and Intermediary Obligations

While B2B suppliers (such as software providers and RNG suppliers) do not require a specific DGJS gaming permit to provide services to licensed operators, they do not operate outside of federal regulation. Crucially, under federal tax law, any B2B entity or payment processor acting as a digital intermediation platform that collects payments for online gaming on behalf of a foreign operator is subject to strict enforcement. These intermediaries are legally required to retain 100% of the IEPS tax collected, substituting the operator in the obligation to pay the tax. Failure to comply with these retention and reporting requirements can result in the temporary blocking of the intermediary’’s digital service access in Mexico.'

How Foreign Operators Enter the Mexican Market: The Partnership Route

Foreign companies cannot apply for a Mexico gaming license directly. No new standalone online gaming licenses are being issued by DGJS as of 2026. Sub-licensing ended in November 2023. Practically, the most common legally compliant route for a foreign operator seeking to offer licensed gambling services from within Mexico is to partner with an existing DGJS license holder.

This is the central fact most competitor pages bury. It belongs here, stated plainly. However, it is crucial to note that Mexican federal tax law actively contemplates and taxes foreign operations; games with bets and draws carried out through the internet by foreign residents without an establishment in Mexico are explicitly subject to the 50% IEPS excise tax.

Partnership Options

Three partnership structures are available to foreign operators:

• (a) Revenue-sharing agreement with a DGJS license holder. The foreign operator’’s platform operates under the Mexican partner’’s license. Revenue is shared under a commercial agreement. This is the fastest route to market but gives the foreign operator the least structural control;

• (b) Investment in or acquisition of a stake in a licensed Mexican operator. This provides greater control and long-term security. It requires corporate due diligence, regulatory approval of new shareholders, and a longer timeline than a pure revenue-sharing arrangement;

• (c) Formation of a Mexican subsidiary that partners with an existing DGJS license holder. The subsidiary operates under the partner’’s license while the foreign parent retains commercial oversight through the subsidiary structure. This is appropriate for operators planning long-term market presence.

What a Partnership Requires

Regardless of which partnership model is used, the following apply:

• SEGOB must be notified of the partnership arrangement;

• The partner entity must be a Mexican commercial entity (typically S.A. de C.V.);

• The foreign operator’’s technology platform, RNG systems, and internal controls must be certified and submitted to SEGOB through the licensed partner;

• Strict Anti-Money Laundering (AML) controls must be established. Legal entities must formally designate a Compliance Representative (Representante Encargada del Cumplimiento) directly to the Secretariat of Finance and Public Credit (SHCP) to manage the reporting of Vulnerable Activities;

• The Mexican partner holds the license; the foreign operator provides the technology and commercial infrastructure under that license.

Timeline for Market Entry via Partnership

The realistic timeline for market entry through the partnership route is 12 to 18 months. Some sources cite 3 to 6 months, but that figure reflects only the SEGOB review phase, not the full process. The actual timeline depends on several factors: partnership identification and negotiation (often the longest phase, driven by how many existing license holders are open to new arrangements and on what terms), document preparation and certification quality, SEGOB review queue at the time of application, and corporate setup speed for the Mexican subsidiary, where required.

An operator who enters negotiations with a strong compliance framework, a certified platform, and well-prepared documentation will move faster than one building these elements concurrently with the partnership negotiation.'

Documentation

The documentation requirements for a DGJS application are substantial. The checklist below covers the main categories. Requirements may vary depending on the license type and whether the operator is entering via a partnership or seeking direct issuance.

Corporate documentation:

• Mexican S.A. de C.V. incorporated and in good standing (only Mexican commercial entities hold DGJS licenses directly);

• RFC (Registro Federal de Contribuyentes) tax identification number;

• Articles of incorporation;

• Corporate structure chart with full UBO (Beneficiario Controlador) disclosure;

• Formal designation of a Compliance Representative (Representante Encargada del Cumplimiento) registered with the SHCP.

Personal documentation for shareholders and directors:

• Full personal identification;

• Source of funds documentation;

• Criminal background clearance;

• Financial statements.

Technical documentation:

• RNG certification from an accredited testing laboratory;

• Sportsbook engine documentation (for betting licenses);

• KYC/AML system architecture and procedures;

• Internal controls framework;

• Player registration, account management, and transaction integrity system documentation;

• Mobile platform documentation where applicable;

• Automated Mechanisms (Mecanismos Automatizados) documentation proving the system can permanently monitor transactions and flag abnormal user behavior or high-risk profiles.

AML, Compliance, and Consumer Protection documentation:

• Internal Policies Manual (Manual de Políticas Internas) compliant with Mexico’’s Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita, including specific PEP tracking protocols;

• Annual Audit Plan (internal or external independent auditor) to dictate compliance effectiveness;

• Responsible gambling policy;

• Self-exclusion system documentation;

• Deposit limits and player protection mechanisms;

• Consumer Protection protocols, including a physical domicile and phone number for player complaints, transparency on automatic recurring charges, and mechanisms for immediate service/subscription cancellation.

Ongoing reporting infrastructure:

• Systems capable of generating the transaction and player activity reports required by SEGOB and the formal Avisos required by the SHCP.'

Ongoing Compliance Obligations for Mexico Gaming License Holders

Holding a DGJS license or operating under one carries continuous obligations from day one of operations.

• Regulatory reporting: License holders must submit regular compliance reports to SEGOB. Annual renewal applies to each permit. Per-venue licensing means each physical location requires its own authorization.

• Advertising: All gambling advertising in Mexico requires prior SEGOB approval before publication. Promotions must not explicitly promote specific bet types. Promotional content must be factually accurate. Furthermore, under the Federal Consumer Protection Law, advertising must not be deceptive or abusive, and operators have the option to voluntarily submit campaigns to PROFECO prior to publication for compliance review. This approval requirement adds lead time to any marketing campaign.

• Player protection: Self-exclusion systems, deposit limits, and age verification (18+) are mandatory. A player complaints mechanism must be accessible and functional; by law, digital operators must provide a physical domicile and phone number for complaints. Furthermore, operators must comply with strict subscription rules: they must clearly inform players of any automatic recurring charges, notify players at least 5 natural days before any automatic renewal takes effect (allowing cancellation without penalty), and provide a mechanism for the immediate cancellation of any service or subscription.

• AML and SHCP reporting: Transaction monitoring and suspicious activity reporting to the Secretariat of Finance and Public Credit (SHCP) are ongoing obligations separate from SEGOB compliance reporting. AML policies must be kept current, but operators must also actively conduct a Risk-Based Approach evaluation and utilize automated mechanisms to permanently monitor player profiles. If an operator suspects transactions involve illicit resources, they must submit a formal Aviso within 24 hours. Additionally, operators must undergo an annual audit to dictate the effectiveness of their AML compliance. The reporting thresholds and transaction categories are defined in federal regulation and apply uniformly to all gambling operators regardless of their license type or revenue volume.

• State restrictions: Operations in the five restricted states must be geofenced or excluded from the operator’’s offering at the platform level. This is a technical implementation requirement, not merely a policy document. SEGOB assessments include verification that geofencing is functional.'

Is Mexico the Right Gaming Jurisdiction for Your Operation?

Mexico is a commercial opportunity with significant structural complexity. 

Advantages:

• Large and growing market with an established legal framework since 1947;

• Active regulatory body with predictable processes;

• No standalone license fee if entering via the partnership route;

• B2B suppliers do not require a DGJS gaming license (though digital intermediaries/payment processors face strict federal tax retention obligations);

• Strong sports betting appetite and growing online casino penetration.

Disadvantages:

• No standalone online-only gaming license; online operations require a land-based license extension;

• Corporate structure requirement (S.A. de C.V.) adds formation overhead;

• An already active IEPS excise tax of 50% on games with bets and draws materially affects unit economics;

• Sub-licensing ended November 2023; partnership is the only foreign entry route;

• 12 to 18 month realistic market entry timeline;

• State-level restrictions in five markets;

• 2026 reform creates general regulatory uncertainty for operators who have not yet entered.

Mexico suits operators who:

• Have existing LATAM infrastructure or player acquisition capability;

• Are committed to the Mexican market specifically, not just seeking accessible offshore licensing;

• Have the capitalization to absorb the heavy 50% IEPS excise tax burden from day one;

• Can execute a 12 to 18-month entry timeline.

Mexico is less suited to operators who:

• Need to validate their product in a new market before committing;

• Want to reach Mexican players at minimal cost from an offshore base;

• Are at an early stage and cannot absorb the timeline or compliance overhead.

For operators in the second category, offshore gambling licenses or jurisdictions with lower structural requirements, such as Curacao, may be more appropriate starting points.'