BtoBet: Mexico’s iGaming Future Looking Bright
Mexico, just like Colombia, Brazil and the whole Latin American market in general, is drawing to itself a lot of attention. And the reason for that is the prospect of a strong regulatory framework.
Although gambling is a permitted activity in Mexico, the country is set to introduce a new set of regulations that will make the local iGaming industry more attractive. Gambling is currently subject to federal jurisdiction, with operators seeking governmental authorization to conduct activities from the competent authority.
Local and global operators on Mexico’s iGaming market
However, the prospect of a broader and stronger regulation is attracting the attention of both local and global operators keen to diversify their revenue sources from the traditional European markets. In an interview with Yogonet, Mexican gaming law attorney Alfredo Lazcano indicated that the Mexican market has huge potential and it could double in size once the government updates its gambling laws.
Although the lower house of Mexico’s legislature approved a sweeping update to its 1947 Federal Betting and Raffles Act, up till now the much-needed amendments have not come into act. Quoting stats Lazcano claimed that Mexico’s online gambling market was worth $450m per year and growing at an annual rate of 25%. However, only $50m of this market is generated by authorized operators.
In a recent interview with El Economista, Miguel Ángel Ochoa, President of the country’s gaming industry association AIEJA, asserted that the time has come for Mexico’s iGaming industry to grow, with 2017 casino attendance figures expected to be around 4m, a whopping 42% increase over the 2.8m who visited casinos in 2016.
Referring to statistics he also noted that Mexico’s gaming industry was already a significant contributor to government coffers, contributing up to an annual MEX 6b (US $300m) in tax revenue, while directly employing 35k citizens and a further 105k indirectly employed.
BtoBet’s forecast on the LatAm region
Boasting of a very strong presence in the Latin American iGaming sector, particularly in Mexico and Colombia, BtoBet has interviewed its Chairman, Alessandro Fried, regarding his forecast and vision on the LatAm region. Gambling is currently a permitted activity in Mexico, subject to the issuance of governmental authorization to conduct gaming activities from the competent authority. However, it is an activity subject to federal regulation rather than state or local level regulation, and the industry will surely reap great benefits once the country implements the new regulatory framework that has been in the pipeline for the past years.
“Having spent a considerable amount of work to be jurisdictionally compliant in Mexico and other LatAm regions, but also other markets globally, BtoBet is already fully capable to assist operators in Mexico. And in fact, we already have a strong presence here,” stressed Fried.
Fried also emphasized: “Operating in such a strongly regulated scene will guarantee a very good level of protection for both the operators and the players themselves. This high level of regulation will act as a safeguard for all parties who have invested in providing a regulated environment for the players. And this will be the same situation of checks and balances that will characterize the Mexican market once the new regulatory framework comes into effect.”
Fried noted that the betting and gambling scene is a strong factor in Latin American countries, and Mexico is no exception, with its online gambling market worth $450 million per year and growing at an annual rate of 25%.
There is much to be optimistic regarding the full potential of the iGaming industry in Mexico. Numbers at hand the country could well emerge as a major player in the whole Latin American market, once the current regulatory framework is revamped.
For a deeper knowledge of the Mexican market, download our latest Industry Report: Mexico: On the verge of true emersion as a major iGaming market in LatAm.