How to Open an Online Casino in Mexico

In a previously published article, we explored the advantages of incursion into the Mexican iGaming market, positioning it as one of the most promising in Latin America.

On this occasion, we propose to provide a definitive guide to the points to consider if you want to open an online casino in Mexico.

Key Figures & Numbers

According to the consulting firm H2 Gambling Capital (2023), Mexico is the second largest market in Latin America regarding online gaming revenues, only behind Brazil. Online gaming revenues in Mexico are estimated to reach US$1.2 billion in 2024, representing a compound annual growth rate (CAGR) of 12%. 

Society and culture

The country has a population of approximately 129 million, of which 51.2% are men and 48.8% are women. According to Bedolla Pereda, Mexico is a plural and culturally heterogeneous society, so it can be said that the country is made up of many ‘Mexicos’ economically, geographically, and ethnically.

The population is divided into six social classes with specific socioeconomic characteristics and behavioural patterns:

Image source: Bedolla Pereda, D. Sensory design. New guidelines for product innovation, specialisation and customisation. Doctoral thesis, UPC, Department of Engineering Projects, 2002. ISBN 8468807486. DOI 10.5821/dissertation-2117-94136.

Culturally speaking, Mexico has a significant trend towards seeking entertainment, distraction and amusement. Mexican society has certain consumer habits like those of U.S. society, which has several implications. Exposure to American advertising and media has increased the acceptance of gambling as legitimate entertainment, adding to the importance of glamorous depictions of casinos in movies and television shows. The adoption of U.S. online gambling technologies and platforms has facilitated Mexicans' access to these services, primarily through mobile devices. In addition, the U.S. influence has softened traditional sceptical perceptions of gambling, normalising it as an accepted activity. Gambling success stories promoted in North American media have created an aspirational model, reinforcing the idea that gambling can be a legitimate path to financial success and has helped normalise this form of entertainment in everyday life.

There is already sufficient evidence of the importance of cultural values concerning the use or consumption of products. Some recent studies have revealed that common cultural values shape consumption decisions. Therefore, it is important to emphasise that players' preferences may vary according to their demographic profile, location and other important factors such as this ‘American’ longing. This behaviour is projected in the game lines of the most trending verticals in the Mexican market, where soccer stands out as the most prominent sport, in addition to the strong presence of other games such as American football, basketball, baseball, wrestling, eSports and Formula 1. Slots, live casino games, and lotteries in various parts of the country also stand out. Regarding the lottery market, the consulting firm Kantar Panel (2020) indicated that the lottery audience in Mexico is mainly female (69%) and is between 40 and 60 years old.

Because of these social behaviours, opening a gaming room with the Mexican folkloric concept would not ultimately work. American influence is very marked in the social and technological fields, mainly in the young adult population between 18 and 40 years old, the largest universe of online players.

Source: Bedolla Pereda, D. Sensory design. The new guidelines for product innovation, specialization and customization. Doctoral thesis, UPC, Department of Engineering Projects, 2002. ISBN 8468807486. DOI 10.5821/dissertation-2117-94136.

Legal Aspects

One of the advantages Mexico has over other countries is its legality. The Ministry of the Interior (SEGOB), through the General Directorate of Gaming and Sweepstakes, is responsible for issuing licences and permits to online casinos seeking to operate in Mexican territory. The Federal Law of Gaming and Sweepstakes, created in 2014, allows the operation of online casinos, sports betting, and other online gaming modalities. A licence of this style supports betting houses and citizens interested in playing in a safe place. Any online casino operating in the territory must have a licence issued by this entity and submit to its rules regarding safe gaming and fiscal transparency. Currently, the SEGOB is only granting sub-licences, and the cost is relatively affordable, considering other markets on the continent.

The current reality is that we see a proliferation of online gaming platforms within the Mexican market. Beyond the solid legal development, there is a large informal market. Due to their informality, these illegal operators damage the market, affect operations and generate distrust among players who expect fair gaming.

Payment Methods

In this aspect, extreme care must be taken to offer reliable payment gateways so that customers can deposit and withdraw their funds quickly, easily, and safely and prevent potential fraud. 

Regarding security, the SEGOB regulates and controls the economic activity of online casinos, and PROFECO protects consumers. These agencies will cooperate to ensure the industry's health and protect all players.

Several payment service providers can help online casinos integrate payment methods into their platforms. When choosing a type of payment processor, the following characteristics should be taken into consideration to have a platform for transaction verification, an administrative dashboard, and an anti-fraud process, both administrative and technological: 

– CNBV approval to operate in the financial system, either as a bank aggregator, bank bin management, bank or similar.

– PCI certification for data handling.

Bank cards, SPEI, cash-referenced payments, prepaid cards, and cryptocurrencies are the most used payment methods in the online gaming industry in Mexico.

Source: Latam Entertainment

Platform & Gaming Providers

Choosing a suitable platform provider is necessary to have peace of mind that the site is secure and scalable. The site to be developed must be top-notch, as it is the most important face of the brand. Providing a good customer experience is difficult if the platform is buggy, laggy or complicated. Sooner or later, most players will abandon it. 

When choosing a provider, consider the site's objectives, such as being aesthetically pleasing and immersive, working quickly, being secure, and being accessible to navigate. To do this, you should examine other sites the provider has created, check for uptime (high), and look for CTA buttons, menus, search engines, etc. 

Also, investing in a varied range of casino game options is crucial. This will increase consumer acceptance of the platform, make the brand stand out, attract a much broader and diverse audience and create a community around the brand.

Human Resources

The selection of a qualified team in a niche as specific as iGaming will make the company stand out from the competition. Suppose the initiative is taken to hire people who have not worked in the sector or have little experience in the field. In that case, exhaustive and periodic training will be essential to offering excellent customer service and correctly making each company process work.

Marketing, Strategy & Advertising

Initially, the marketing team must create two plans: marketing and communication.

From this starting point, the marketing initiatives or actions the team will develop must be related to a deep understanding of the customer and the market. Results will be achieved based on the 360° strategies produced to connect, excite and make audiences fall in love, materialising creative and innovative ideas that will increase the value of each service and brand.

Social Networking 

The social network strategy is part of the company's communication plan. It is considered a key tool for expanding the business, making it known, generating community, and attracting potential customers (also called prospects or leads). Depending on the vertical, you can choose the networks that best suit what you want to communicate, considering the communication objectives and the target audience. 

In Mexico, more than 115 million people have cell phones that are suitable for playing games, and more than 90 million have access to the Internet. With an incidence of social network use equivalent to 100 million inhabitants, practically 77.2% of the total population is connected to the network. The most active social networks are Facebook, Instagram, and YouTube, followed by TikTok, Discord, and Twitch, which are increasing in popularity.

About WA.Technology:

WA.Technology is an award-winning B2B iGaming provider offering a full spectrum of platform solutions. Learn more at watechnology.com.

Disclaimer: This article has been provided by Latam Entertainment for informational purposes and does not necessarily reflect the views of WA.Technology. Investments in any market, including Latam, should be made after thoroughly analysing and understanding local regulatory and market conditions.

As a dedicated B2B service provider, we uphold a strong culture of compliance, emphasising the importance of social responsibility and responsible gaming.