Mexico's Proposed Reform Aims to Outlaw Gambling Machines
In a significant turn of events, Mexico's federal ban on slot machines in casinos, enacted in 2023, has been overturned by a federal judge in July 2024. This ruling effectively reopens the legal space for slot machines in the country's casinos, alongside other games such as cards and roulette.
The decision, however, does not directly impact online gaming operators, as Mexico's gambling laws, dating back to 1947 and only modestly updated since 2004, still impose restrictions on some forms of gambling. Yet, the online gaming market has been growing in popularity, driven by convenience and shifts in demand due to the COVID-19 pandemic.
Despite the growth, Mexico has not fully legalized online casinos, and competition from offshore operators persists. There is no explicit legal restriction on online slot machine games, but regional communities, such as the Pueblo of Laguna in nearby New Mexico, USA, express concerns about the economic and social impacts of online gambling.
The current status of physical slot machines is that they are allowed again, while online gaming operators in Mexico navigate a cautiously evolving regulatory environment. They face both growth opportunities and regulatory uncertainties. Notably, the reform will not be retroactive, allowing current casinos to maintain their slot machines during the validity of their permits.
The licenses of existing casinos are currently under review, leading to some shrinkage in the casino market. According to government data, over 50% of online gaming platforms in Mexico are not under the control of the National Directorate of Games and Sweepstakes. Interestingly, more than 60% of people who bet online in Mexico prefer online platforms over traditional establishments.
In a surprising turn, the federal government is preparing a reform to completely prohibit slot machines in casinos that were legalized during former president Felipe Calderón's administration. This new legislation, initiated by President Andrés Manuel López Obrador in September 2023, suggests that only the Directorate of Games and Sweepstakes, which reports to the Ministry of the Interior, has the authority to grant casino permits in Mexico.
The reform, published last week, would eliminate "draws of numbers or symbols through machines," a direct reference to slot machines. If enacted, this reform could potentially impact the iGaming segment, which may face the same situation as the land-based segment due to the new legislation.
Despite these regulatory changes, the figures show the evolution of online gaming in Mexico, despite its lack of complete regulation. Statista data indicates that Mexico is one of the countries with the most daily visits to online gaming platforms in the world. The rise in online gaming in Mexico can be attributed in part to the current state of land-based casinos.
It is important to note that the municipal license for casinos has no reason to exist, according to López Obrador and his advisors. However, despite the review, new casinos are still emerging due to the measure not being 100% effective. The Supreme Court of Justice unanimously supported the legalization of casinos in 2016, setting the wheels in motion for this dynamic regulatory and industry landscape.
Industry events, like GAT Expo CDMX 2025, indicate ongoing development and investments in the Mexican gambling sector, both land-based and online. The reform's goal is to completely prohibit slot machines in casinos that were legalized during former president Felipe Calderón's administration, which could potentially reshape the future of the gambling industry in Mexico.
- The federal judge's ruling in July 2024 has reopened the legal space for slot machines in Mexico's casinos, allowing casino-games such as cards and roulette to coexist alongside them.
- The growth in the online gaming market, driven by convenience and shifts in demand due to the COVID-19 pandemic, has not been fully legalized in Mexico, with some forms of online gambling still subject to restrictions.
- The Mexican government is preparing a reform to completely prohibit slot machines in casinos that were legalized during former president Felipe Calderón's administration, potentially impacting both the land-based and iGaming segments.
- The evolving regulatory environment in Mexico's casino-and-gambling industry is of interest to casino-personalities and investors, with industry events like GAT Expo CDMX 2025 showcasing ongoing development and investments.
- Despite regulatory changes, Mexico's casino culture continues to adapt, with statistics showing it as one of the countries with the most daily visits to online gaming platforms worldwide.
