Mexico: the New iGaming Giant in Latin America?

Join us as we delve into the particularities of the Mexican culture that every gaming operator should know when planning its strategy for new operations in this part of Latin America. We’ll analyse the five most important indicators that make Mexico a new iGaming power.

Strong Market

A study conducted by H2 Gambling Capital in 2023 indicates that Mexico is the second largest market in Latin America in terms of online gaming revenues, only behind Brazil. It is estimated that online gaming revenues in Mexico will reach US$1.2 billion in 2024, representing a compound annual growth rate (CAGR) of 12%.

Gaming Incidence

An analysis by the research firm Eilers & Krejcik Gaming in 2023 indicates that the Mexican online sports betting market is growing at an accelerated pace, with a CAGR of 20%. 

With respect to casino games, Mexico is one of the most important markets in this continent, and according to information from AIEJA on the Mexican player market (2022), it has an incidence of casino gambling in a ratio of 2/5. Two out of every five Mexicans play in casinos, and its legal operation is mainly concentrated in Mexico City, occupying more than 40% of the total number of players, leaving 60% of the market in an attractive position for new operations where the online casino format is suggested. Likewise, the lifetime of a player in months is equivalent to 4.2 months (of the 12 months in the year), being above the average retention time (3.5 months, data from Statista Consulting (2022) if we compare it with other countries in the continent.

Increased Revenues in Slots & Sports Verticals.

The Mexican Government Secretariat has deduced that, through its tax revenues, there has been an increase in economic income of more than 10% per year in the last five years. Slots, roulette, and blackjack dominate the online casino market, while football (soccer) is the most chosen sport in sports betting. The growing popularity of live dealer games and eSports are two trends to watch out for.

Use of Social Networks

With a population of approximately 129 million inhabitants, more than 115 million people own cell phones 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 have shown increased popularity.

Legality

One of the advantages that Mexico has over other countries is its legality. Since 2013, casinos have been operating under a SEGOB licence, a local licence granted by the Mexican government secretariat, which provides support and guarantees not only to gambling houses but also to citizens interested in playing in a safe place. However, there is a large informal market that, according to several studies, represents 80% of the total number of casinos in operation. Due to their informality, these are the ones that damage the market, affect the operation of all and generate distrust among players who expect a fair game.

Mexican culture

Culturally, Mexicans are very festive, religious, group-oriented and, from the sentimental field, very nationalistic because you breathe a bit of their art and customs into every corner of Mexico. This could make us think that opening an arcade with the Mexican folkloric concept should work. However, there is a strong American influence in the social and technological spheres, mainly in the young and adult population between 18 and 40, which is the largest slice of online players.

As Dr. Jorge Tirzo says in his book ‘La Cultura en México’, “The Mexican today longs and tries to live like an American." Therefore, it is essential to highlight that players' preferences may vary according to their demographic profile, location, and other important factors such as the ‘American longing’. This behaviour is projected in the game lines of the most trending verticals in the Mexican market, where not only is Football (soccer) the king of sport but there is an important presence of other games such as American football, basketball, baseball, wrestling, eSports and Formula 1, without leaving aside the lotteries that we can find for sale in various parts of the country. The consulting firm Kantar Panel (2020) indicated that the public in the lottery market in Mexico is mainly female (69%) and is between 40 and 60 years old. 

Interesting, isn't it?

If you have come this far, we believe you’d like to know more about this topic. WA.Technology offers you personalised advice and a complete spectrum of iGaming platform solutions so you can decide to start your business in the powerful Mexican market.

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