Movers and Shakers: Mexico – why dated regulations are holding back LatAm’s surprise success story
“Movers and Shakers” is a dynamic monthly column dedicated to exploring the latest trends, developments, and influential voices in the iGaming industry. Powered by GameOn and supported by HIPTHER, this op-ed series delves into the key players, emerging technologies, and regulatory changes shaping the future of online gaming. Each month, industry experts offer their insights and perspectives, providing readers with in-depth analysis and thought-provoking commentary on what’s driving the iGaming world forward. Whether you’re a seasoned professional or new to the scene, “Movers and Shakers” is your go-to source for staying ahead in the rapidly evolving iGaming landscape.
Yoni Sidi, CEO at Winpot, says Mexico might be LatAm’s standout market, but that it is something of a double-edged sword with dated regulations preventing the market from achieving its full potential
Mexico has become one of the most prominent online gambling markets in Latin America.
Despite the hype surrounding Brazil, it’s Mexico that is delivering in terms of headline numbers – the average deposit per player sits at $224 in Mexico, while in Brazil, it’s $149.
The volume of sports betting is comparatively high, too, accounting for around 50% of Mexico’s online gambling market – driven by an affinity with US sports as well as football.
The country’s online casino market is thriving, too, and is drawing big-name international operators as well as local brands, such as Winpot.
But the Mexican market is not without its challenges, especially the market’s dated and rather complex regulations that have not been simplified and clarified, as promised by the previous government.
Current regulations are more than 70 years old and so have not been written specifically for online gambling, while the constant rotation of leadership within the Mexico Interior Secretariat’s lottery and gambling department brings new interpretations and rules for operators to keep pace with.
This means Mexico is something of a double-edged sword. It is a thriving market with plenty of growth potential, but one where operators walk a legal and regulatory tightrope.
This begs the question – what is the wider impact of this regulatory uncertainty, and how can operators active in the market navigate these choppy waters so they not only survive, but thrive?
Regulatory certainty is always a catalyst for growth:
The current regulations need modernising, but they have provided a framework through which the online gambling market has been able to establish itself and grow at a rapid pace.
The market is already attracting big-name international operators such as PlayOJO (PlayUZU), Betano and bet365. These operators do not enter markets without undertaking significant due diligence beforehand and being comfortable with the regulatory requirements in place.
It’s also a draw for local brands, including the likes of Caliente and, of course, Winpot. So, the regulations are clear and robust enough for the market to work.
But for Mexico to take the next step forward in its evolution, and to achieve the $4.3bn in predicted revenues by 2033, regulations need to be overhauled and stabilised.
This is what operators look for when assessing market viability, and once this is provided, I expect to see a flurry of new brands hit the market.
That said, for those brands to make a play in Mexico, regulations will also need to do more to combat the black market.
The black market is always bubbling away in the background:
Just like other regulated markets across the world, there is a large black-market looming in the background in Mexico.
While online revenues have increased from $600m in 2019 to $2.7bn in 2024 (and are on track to surpass $3bn this year), it’s estimated that around 60% of activity is being run through illegal sites.
This undermines the investment that licensed operators make in responsible gambling, player protections and compliance.
Providing consumers with a choice when it comes to the licensed sites they can play it is one of the best ways to combat the black market, but those brands must be able to compete with their unlicensed rivals when it comes to things like bonusing, content and payments.
Again, this requires robust regulations that attract operators and allow licensed sites to offer a compelling player experience, but from a foundation of responsible gambling.
Technology that facilitates adaptability
In the meantime, operators need to be able to respond to regulatory changes while remaining competitive, and this requires a modern, agile platform and tech stack.
This is why Winpot is powered by Wiztech, a cutting-edge platform designed to meet the demands of operating in regulated markets across the world.
The platform is incredibly adaptable, allowing us to quickly make changes off the back of any regulatory updates, always ensuring compliance.
It also allows us to deliver a standout player experience across both online casino and sports betting, with a high degree of personalisation, especially when it comes to content and bonuses.
The superior player experience we can offer has seen Winpot quickly emerge as a leading brand in the Mexican market, despite the regulatory (and black market) challenges we face.
Despite these challenges, we are confident that there is plenty more growth to come from the market, and we remain deeply committed to being a driver of this.
Mexico is LatAm’s surprise success story, but it’s only just warming up.
