Mexico: Online gaming sector expected to grow by 70% as a result of regulatory changes

The reform of the government of President Andrés Manuel López Obrador to the Regulation of the Federal Law of Gaming and Sweepstakes, which came into effect on November 17, 2023, has caused important changes in the projections of the local gaming industry. As a result of the reforms, the online gaming sector foresees a 70% growth in the coming years.

In contrast to the good prospects for online casinos, land-based casinos face bad omens regarding their situation, since the reform establishes that no new permits will be granted nor will those in force be renewed for the operation of slot machines in casinos, which currently number 429.

It is speculated that, gradually, the restrictions for land-based gaming will lead players to move to the virtual world, causing the online gaming industry to grow by at least 70% in the next three years.

This would represent 39% more than the projections at the beginning of 2023, approaching $4,063 million. Before the changes in the Regulation of the Federal Gaming and Sweepstakes Law, the revenue projections for 2027 were $3,490 million, a growth of 31% compared to the revenues for 2023.

In addition, the number of online casino users is expected to reach 31.6 million users by the end of 2028, according to Statista.

This regulation is in addition to other factors that have contributed significantly to the development of online casinos and their growing popularity worldwide, such as accessibility, game variety, post-pandemic trends, flexibility, and technological evolution. Besides, financial transactions are becoming faster and more secure, and the privacy offered by online casinos compared to land-based casinos is indisputable.

The reform will reduce from 25 to 15 years the maximum term of new permits, which would cause the massive closing of gaming halls, accompanied by a reduction of up to 90% in the fiscal contributions of the sector, according to estimates of the Association of Permission Holders, Operators and Suppliers of the Entertainment and Gaming Industry (Aieja).

"For the next three years, online casinos have very good prospects, we expect a growth in income of up to 70%, well above the projections we had a few months ago," explained Bernardo Verdejo Landeros, Marketing and Loyalty Manager of the Online Division of Strendus, according to El Financiero newspaper.