Regulation and risks of online gambling in Mexico

Fraud, money laundering, and underage gambling: without identity verification, online gambling is a risk. This is how gambling is regulated in Mexico.

Online gambling has gained popularity in Mexico and around the world thanks to the ease of the internet, attracting thousands of players seeking entertainment and profit. However, this industry is backed by strict regulations that bookmakers must comply with, especially regarding identity verification. This not only protects players but also prevents fraud and money laundering.

In Mexico, the Federal Gaming and Lottery Law, along with its regulations, establishes the guidelines for legal operations. The General Directorate of Gaming and Lotteries, under the Ministry of the Interior (SEGOB), is responsible for granting permits and supervising betting platforms.

One of the key regulations is the Federal Law for the Prevention and Identification of Operations with Illicit Proceeds, which requires verification of the source of funds in bets exceeding 325 times the minimum wage.

Identity validation in betting houses

The Regulation of the Federal Law on Games and Sweepstakes It stipulates that betting houses must implement identity verification mechanisms to prevent underage access, fraud, and other financial crimes. To do so, they must register:

• Full name and official user documentation.
• Address and nationality.
• Payment methods and financial transactions.
• Betting and transaction history.

Article 85 of the regulations specifies that "establishments may accept bets via the Internet, telephone, or electronically. To this end, they must establish an internal control system for transactions carried out through these means, preparing a written description of the procedures and rules that ensure the inviolability and prevent manipulation of the betting systems. This system must record, at a minimum, the following: the account number and identity of the bettor, the date, time, transaction number, amount wagered, and selection requested."

Responsibility of bookmakers

Online gaming platforms are required to ensure the security and legality of their operations. Some measures they must implement include:

• Biometric and document verification systems: Use of technology to authenticate the user's identity through facial recognition or document validation.
• Activity log: They must keep detailed records of each bet placed, associating it with an identified user.
• Personal Data Protection: Compliance with privacy regulations to safeguard player information.
• Money laundering prevention: Reporting suspicious transactions to financial authorities.

Current context of Mexican players

The gaming and betting sector in Mexico has shown significant growth in recent years. In the fourth quarter of 2024, GDP reached $187,662 million pesos, with an increase of 16.5% compared to the previous quarter. According to the National Statistical Directory of Economic Units (DENUE) 2024, there are 5,355 economic units dedicated to casinos and gambling in the country, with Mexico City (577), Yucatán (483), and Jalisco (403) leading in number of establishments. Additionally, during the third quarter of 2024, the employed population in the sector was 20,400 people, with an average monthly salary of $3,680 MXN. 

The above data reflects the importance of the sector and the need for a robust regulatory framework to protect players and ensure transparency in online betting. Bookmakers have a responsibility to ensure a safe and legal environment for its users. The identity validation It is an essential measure to protect players and prevent illegal activities.Before registering on a platform, it's advisable to verify its license and compliance with current regulations.