Mexico Unveils Overhaul of 1947 Gaming Law to Address Online Betting Boom

Key Moments:

  • President Claudia Sheinbaum Pardo has revealed plans to modernize Mexico’s gambling regulations, with an emphasis on regulating online betting platforms.
  • The reform process is being led by Rosa Icela Rodríguez, aiming to address consumer protection, advertising, and responsible gambling measures.
  • The government is considering increasing the IEPS tax on internet gambling from 30% to 50%, directing the additional revenue to mental health and addiction prevention.

Plans for a New Regulatory Era

Mexican President Claudia Sheinbaum Pardo has outlined intentions to update the country’s Ley de Juegos y Sorteos, a legal framework that has governed gaming since 1947. The initiative responds to the swift development of online sports wagering and the growing public prominence of digital betting.

Drafting the Reform: Segob’s Leadership

President Sheinbaum clarified that the reform is designed to create orderly and modern regulations, not to prohibit gambling activities. She highlighted the exponential growth of digital gaming platforms, emphasizing the need for regulation that matches current realities. Rosa Icela Rodríguez, secretary of the Secretariat of the Interior (Segob), has been tasked with preparing the reform proposal. The proposal will include concrete provisions for online gaming, such as consumer protection, restrictions on advertising, and obligations for responsible gaming.

Segob has already begun working on the draft reform, which will form the core of the law revision process. President Sheinbaum said, “We will ask Rosa Icela to detail it more“, noting her continued involvement in efforts to oversee and regulate casinos due to the surge in online betting. The government plans to make the process inclusive by seeking input from civil society and industry representatives to ensure the rules reflect both technological and social needs.

Advertising and Addiction: Drivers of the Reform

The ubiquity of betting advertisements, particularly around sports broadcasts, is a primary concern fueling the reform effort. President Sheinbaum expressed unease with the frequent exposure of young people to online gambling promotions, often run by foreign companies. She commented, “If you’re viewing a sporting program, soccer or American football, you’re being bombarded with internet gambling advertisements“, and cited worries about the message that gambling can be an easy way to make money.

She also stressed the emerging risks of pathological gambling, stating that it can lead to severe mental health issues.

Taxation and Public Health

An integral aspect of the reform proposal is the potential to raise the Special Tax on Production and Services (IEPS) for internet gambling from 30% to 50%. The extra revenue would be directed toward mental health services and initiatives to prevent gambling addiction. Sheinbaum noted, “These monies will go towards mental health and gambling addiction prevention“, underscoring the administration’s commitment to responsible regulation and supporting affected individuals.

Regulatory Revisions and Social Impact

Mexico’s forthcoming reform marks a significant pivot as the nation aims to align economic opportunities with consumer safeguards in the digital age. The rapid growth of online betting platforms and their presence via sports sponsorships and media has prompted calls for updated laws emphasizing social responsibility.

By integrating legal modernization, stricter advertising controls, and policies focused on responsible gaming and public health, President Sheinbaum’s administration is working to ensure that Mexico’s gaming industry adapts to digital realities while upholding the well-being of its citizens.

Area of FocusCurrent/Proposed ChangeIntended Outcome
Regulatory FrameworkModernization of 1947 gaming lawUpdated laws for digital betting
Taxation (IEPS)Increase from 30% to 50% for internet gamblingSupport mental health and addiction prevention
AdvertisingRestrictions to limit youth exposureReduce impact of gambling ads on minors
Responsible GamingInclusion in reform draftEnhanced player protection
  • Author

Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
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