Mexico is widely considered a golden opportunity for global iGaming operators, according to Delasport as it assesses the potential opportunities available in the country’s iGaming market.
With a mobile penetration of around 80% across a population nearing 130 million people, the second-strongest economy in Latin America is steadily putting itself on the map for the global online gambling industry.
If one thing is clear: Mexico is poised to become a serious player.
Mexican iGaming Market size and growth
The Mexican iGaming market size is estimated at $500m GGR enjoying ~10% year-to-year growth. By product type, the gambling market is segmented mostly into sports betting, and casino. Online operators require a license from SEGOB while B2B suppliers don’t, and the tax rate for operators is 30% from GGR. From a technology perspective, in 2020, over 80 million Mexicans use a smartphone. This high mobile uptake has had a significant effect on the iGaming market, with operators now offering mobile-ready experiences and applications to ensure players have the facilities they expect.
Online gambling legislation in Mexico
Although online gambling services are not expressly controlled under the Federal Gaming and Raffles Law 1947, they are considered legal and regulated under the 2004 regulation. Online operators are required to have a license while B2B suppliers are not required to obtain a dedicated gambling license. However, operators are obligated to inform the names of their suppliers
There are dozens of online casino and sports betting operators, most of which are partnering up with internationally licensed operating companies that are permitted in Mexico, and able to accept players in Mexico.
Sports betting in Mexico
Sports betting in Mexico comes to about $300 million USD gross wins annually in tax revenue. Just like most other countries, Mexicans worship football and their enthusiasm naturally extends to the sportsbook. The Primera Division is Mexico’s most popular football league, with a huge number of spectators and wagers. Mexicans are also interested in international leagues such as the English Premier League, German Bundesliga, and Spanish La Liga.
Baseball is also very popular in Mexico, with native baseball leagues having significant viewership and betting. American leagues are also popular, so both sides see a huge number of bets, especially on Mexican Baseball League and Major League Baseball.
Mexican sports enthusiasts have a surprising amount of interest in American football. So much so that the NFL makes a point of bringing games to Mexico City every year. While most Mexican bettors make their wagers on NFL games, NCAAF events are still in the mix.
Online casino games in Mexico
Online casinos in Mexico offer many of the same games that you’d see from international operators, but naturally there are preferences that local bettors have when compared to other countries. For example, video slot games with themes like Inca, Día de los Muertos, pinata, and similarly themed games are popular. The online casino industry in Mexico is sufficiently developed to grant access to popular games, mobile gaming experiences, bonuses, VIP programs and others.
As with most of the rest of the world, slots are the most popular type of casino games that are being played online in the best casinos in Mexico. Blackjack is also highly popular and is usually front and center of online casino platforms. There is also significant traffic going to live casino gambling, especially with roulette and blackjack.
Opportunities and challenges
Mexican players are split around 60% for sports betting, and 40% for more traditional casino games such as slots, blackjack, poker, and lottery. While operators are most certainly offering experiences in both these verticals, the quality of those experiences is what will keep players coming back.
More engaging experiences – To reach the kind of quality that players are getting from more mature digital markets, Mexican operators have something of an uphill battle against competitors who offer high-quality sportsbooks and online casino experiences. However, with the growth of the market has come the growth of specialist technology companies who provide end-to-end solutions for operators looking to enter the market without having to invest in creating their own offerings.
Marketing – Marketing costs are a significant burden for the Mexican operators. The concept of marketing is nothing new, but for operators in the emerging Mexican market, the sooner the better. Instead of simply relying on above-the-line communications from land-based casinos, billboards, radio or word of mouth, operators looking to go online will need to embrace channels such as social media and other major platforms to raise awareness and demonstrate that they are truly part of the digital movement.
Our expectations for the future
With its fast-growing technological adaptation, population density, and operators hungry for success, Mexico is well-placed to become a serious global player in the iGaming space. We expect to see significant growth in Mexico’s iGaming industry, with both new entrants and the old guard clamoring to establish themselves before the competition heats up too much.
However, as the industry is still in its infancy when compared to others, online operators will be looking to team up with technology companies instead of creating their own proprietary solutions.
This is where partners like Delasport come in, offering online casino and sportsbook solutions that are already fully functioning and supported; perfect for companies looking to get up and running fast. Delasport’s recent partnership with Winpot, a licensed Mexican operator, is just one example of how we’re making an impact on the industry.
Today’s players are looking for sportsbooks that show more than events and odds: they are looking for a platform that understands their needs to provide superior experiences through intuitive UX, personalisation, localisation, gamification, and other consumer-centric areas. Delasport’s solution of Casino, PAM and Sports betting are offering it all, while being tuned to fit the Mexican market.