Situated in the south of North America and on the north-west corner of Latin America, Mexico is divided into 32 states which are among one of the largest states worldwide. Thus Mexico City is its vibrant capital. By 2024, Japan’s population is expected to exceed 130 million which will make it the Latin America largest market for both land-based and online gambling. In this paper, we will discuss the complicated legal situation of betting sites in Mexico and how sports betting in Mexico has changed throughout the years.
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History of Mexican Gambling Laws
The regulatory system for gambling in Mexico has undergone many changes over the years, starting from the Federal Gaming and Raffles Law of 1947. The first of the four laws which were passed in this direction was quite a small one, with only 17 articles.
The law was the main legal reference for gambling for many years, thus creating a dangerous situation both for operators and regulators. It was not until September 17, 2004 that the Mexican government introduced the Regulations of the Federal Gaming and Raffles Law to give more detailed guidelines.
Key Legislative Milestones
- 1947: The Federal Gaming and Raffles Law will be put into effect.
- September 17, 2004: The regulations of the Federal Gaming and Raffles Law are introduced.
- 2012-2013: The Gaming Regulations must be reformed to the technological advancements.
- 2016: The Supreme Court of Justice of the Nation has made it legal to play slot machines in casinos and they are now classified as lottery games.
- November 16, 2023: The suggesting of a radical change to ban the use of slot machines which is highly debated.
Gambling Law and Regulation in Mexico – 5 Things to Know
Regulatory Authorities and Their Functions
The regulation of commercial gaming in Mexico is mainly at the federal level and it is managed by the Ministry of the Interior (Secretaria de Gobernacion) through its Gambling and Raffles Bureau (Direccion General de Juegos y Sorteos).
Primary Responsibilities
- Evaluation and Issuance of Permits: The Bureau is in charge of issuing the licenses to gambling facility operators.
- Regulation and Supervision: The Bureau is responsible for the regulation, authorization, supervision and enforcement of gambling activities excluding those conducted by the National Lottery which has its own regulatory framework.
- Ongoing Legislation: The NM Gaming Control Board is now in the process of drafting new legislation to deal with the online gambling sector, which has been growing rapidly and still unregulated under existing laws that have not been amended since 2004.
License Types and Fees of Betting Sites in Mexico
Mexico provides a lot of gambling licenses and each one has its own conditions and fees. Here is a detailed breakdown:
License Types
- Land-Based Casino Licenses: Deals with bingo, raffles, slot machines and live gaming. Requires municipal approval.
- Remote Betting Licenses: For online gaming activities.
- Horse and Greyhound Race Tracks: Licenses for operating race tracks and the associated betting operations.
- National Fair Licenses: For the purposes of gambling at national fairs such as the Feria Nacional de San Marcos.
Fees and Taxes
- Governmental Charges: The tax is usually 1%-2% of all bets made on different events and it is paid by the license holders.
- Income Taxes (Impuesto Sobre la Renta – “ISR”): Around 30% of the total income received yearly constitutes online gambling revenue.
- Special Production and Services Tax (Impuesto Especial Sobre Producción y Servicios – “IEPS”): 30% on the number of bets really gained from clients every month.
- Local Taxes: There may be other taxes to be paid because of the state and location.
Prohibited and Permitted Bets of Betting Sites in Mexico
In Mexico, betting games are all subject to the law that requires them to be authorized by the Ministry of the Interior. he following games are explicitly permitted:
Permitted Games
- Chess
- Draughts
- Dominoes
- Dice
- Blackjack
- Bowling
- Billiards
- Sports (American football, car races, horse races and so on)
Prohibited Games
- Unlawful games of chance and skill, especially those that are not listed in the Gaming Law.
- Unlicensed slot machines and electronic gaming devices.
Recent Legal Developments
The Supreme Court of Justice of the Nation made a major step by legalizing slot machines in 2016, with the condition that they are operated within licensed casinos. Yet, a recent proposal that was made on November 16th, 2023 suggests the ban of all slot machines because they allow for drawing numbers and symbols through them. This project has won a lot of political approval, although its legality is still debated.
Conclusion
The Mexican betting sites map is a collage of different pieces that are constantly changing. The country is trying to achieve the balance between the historical legislation and modern reforms with which it will regulate both land-based and online gambling. The Ministry of the Interior is in charge, together with other regulatory bodies, to keep this balance and thus make sure that Mexico sports betting and gambling are done within a legal and ethical framework. The regulatory environment is the key to businesses and people who want to pass through this landscape.