Guide to Gambling Licenses and SEGOB Regulation in Mexico

Foreign companies cannot directly apply for a Mexican gambling license. Starting in 2026, the Mexican General Directorate of Gambling (DGJS) will no longer issue new standalone online gambling licenses. The license transfer system was discontinued in November 2023. In practice, the most common legal route for foreign operators wishing to offer legal gambling services in Mexico is to partner with a company that already holds a DGJS license.

This is a key fact that most competitors’ pages deliberately overlook. It should be clearly stated here. However, it must be noted that Mexico’s Federal Tax Code explicitly provides for the taxation of business activities conducted abroad; foreign residents who place bets or participate in lottery games via the Internet—and who have not established an establishment within Mexico—are explicitly subject to a 50% IEPS tax.

Cooperation Options 

Foreign operators can choose from three partnership models:

• (a) Enter into a revenue-sharing agreement with a DGJS license holder. The foreign operator’s platform operates under the license of its Mexican partner. Revenues are shared in accordance with the commercial agreement. This is the fastest way to enter the market, but the foreign operator has the least structural control;
• (b) Investing in or acquiring shares of a licensed Mexican operator. This can provide greater control and long-term security. However, it requires conducting corporate due diligence, obtaining regulatory approval for the new shareholder, and takes longer than a pure revenue-sharing arrangement;
• (c) Establish a Mexican subsidiary to partner with an existing license holder from the Mexican Alcohol Monopoly Agency (DGJS). The subsidiary operates under the partner’s license, while the foreign parent company retains commercial control through the subsidiary structure. This option is suitable for operators planning to operate in the market on a long-term basis.

What Does a Partnership Require? 

Regardless of the type of cooperation model adopted, the following principles apply:

• SEGOB must be notified of the cooperation arrangement;
• The partner entity must be a Mexican business entity (typically a corporation);
• Foreign operators’ technical platforms, RNG systems, and internal controls must be certified and submitted to SEGOB through authorized partners;
• Strict anti-money laundering (AML) controls must be established. Legal entities must formally designate a compliance officer (Representante Encargada del Cumplimiento) who reports directly to the Ministry of Finance and Public Credit (SHCP) to manage the reporting of vulnerable activities;
• A Mexican partner holds the license; foreign operators provide the technical and commercial infrastructure under that license.

Timeline for Market Entry Through Partnerships 

The reasonable timeframe for entering the market through a partnership is 12 to 18 months. Some sources indicate 3 to 6 months, but this figure reflects only the review phase by the Mexican General Customs Administration (SEGOB), not the entire process. The actual timeframe depends on several factors: identifying and negotiating with partners (typically the most time-consuming stage, depending on how many existing license holders are willing to accept new partnership arrangements and the terms of the partnership), the quality of document preparation and certification, the review backlog at the Mexican General Customs Administration (SEGOB) at the time of application, and (if required) the speed at which a Mexican subsidiary can be established.

If operators have a robust compliance framework, a certified platform, and well-prepared documentation from the outset of negotiations, they will make progress more quickly than operators who have to build these elements simultaneously during the partnership negotiations.