Guest Post: A Deep Dive into The World of Online Gaming in Mexico
The online gaming industry in Mexico has experienced serious growth in recent years and for all sorts of reasons… the ever-changing and evolving digital landscape and the growing popularity of online entertainment. With more people joining the sector to work – and more people joining the sector to play – plus a well-regulated market, Mexico’s gaming industry has never been bigger or better.
Here, we will look at all the different areas of this sector – from its economic impact to the people who are using it and more…
Economic Impact
Realistically, the economic impact of online gaming in Mexico has been nothing short of incredible. This is one of the fastest-growing sectors in the country – and, as such it is starting to become a massive contributor to Mexico’s economy.
With around 35,000 people directly employed within the gaming industry, there is no doubt that it is becoming a source of livelihood for many. With new jobs created such as game developers, customer support representatives, marketing professionals and more – it’s having a huge impact on the people of the country.
However, the impact goes far beyond that. In fact, it’s estimated that an extra 105,000 people are indirectly benefiting from the industry’s growth – for example, those in sectors such as hospitality, advertising and payment processing. This doesn’t just help the people of the country, but it winds its way through the whole economy, giving it more stability – and helping to reduce unemployment.
What’s more, right now, the Mexican online gaming sector’s upward trajectory shows no signs of slowing down any time soon. In fact, projections indicate that it could experience a massive 33% growth from 2020 to 2026 – which positions this industry as one of the biggest drivers of economic prosperity in the country.
As it continues to evolve, it looks likely that it will make even more of an impact on Mexico’s economy in the future – and there’s no denying that this could be incredibly positive for the country.
The Digital Revolution
The digital revolution is happening all around the world – and Mexico is no different. It has brought in a whole new era for online gaming in Mexico. With around 86.8 million internet users which accounts for approximately 76.3% of the population, Mexicans are embracing online entertainment more than ever before.
What’s more, online gaming in Mexico is not only legal but also fully regulated, which means that, unlike in many countries, players can enjoy a safe and secure environment. This regulatory framework has allowed the industry to flourish – and it is now starting to attract not just Mexican operators, but top operators from across the globe.
The great news is that everyone wins – not only do Mexican gamblers get to enjoy the thrills of online gaming, but, if they win, they also contribute to the nation’s revenue. As the laws stand, they are subject to a 1% federal tax on their winnings, along with state-level taxes ranging from 4% to 6%. This helps to build up government revenues and means that the country, as a whole, benefits from this online gaming boom.
Mexican Gambling Preferences
There’s plenty to choose from as well, no matter what your tastes. Online gambling in Mexico comprises all different segments – however, there are two dominant categories: sports betting and casino online gaming.
- Sports Betting (60%): Mexicans have a real love for sports, making sports betting a hugely popular choice. Football, in particular, unsurprisingly stands out as a national obsession. Mexicans not only love to bet on local leagues like Liga MX, but they also put their money into international tournaments such as the FIFA World Cup. The countrymen also enjoy a flutter on boxing and baseball as well.
- Casino Gaming and Other Forms (40%): The thrills of casino games – from slots and poker to roulette and blackjack, also have a huge following. Online casinos mimic the glamour and enjoyment of traditional establishments – and attract players who like a mix of luck and strategy.
While sports betting and casino gaming dominate, the Mexican online gambling scene also includes various other forms of online gambling – such as lottery games, bingo and eSports betting, which also garner a lot of attention.
The diversity of the Mexican online gambling world means there’s something for everyone.
Legal and Regulatory Framework
The good news for those who prioritise safety is that online gambling in Mexico operates within a well-defined legal and regulatory framework. Here are some of the main factors:
- Licensing and Regulation: Mexico’s regulatory body for gambling is the Dirección General de Juegos y Sorteos (DGJS). For any operator to offer online gambling services legally, they will need to be licensed by the DGJS.
- Taxation: Mexican gamblers are, as stated earlier, subject to taxation on their winnings. At the federal level, there is a 1% tax, while individual states can impose additional taxes ranging anywhere between 4% and 6%.
- Player Protection: As is the case with most regulators, the framework includes measures to protect players. As such, any licensed operators will need to implement responsible gambling measures such as self-exclusion options, spending limits and information and links to problem gambling resources.
- Transparency: All operators need to stick to strict transparency requirements, ensuring fair play, honest payouts and the protection of player data.
Overall, the legal and regulatory framework in Mexico is there to ensure that all players can take advantage of a secure and well-monitored environment for online gambling environment, so they can play with confidence.
North American Gaming Landscape
Mexico is a part of the North American gaming landscape essentially – and this is characterised by its huge range of gambling activities across the continent. In the US, whilst casino gambling is widespread – with Las Vegas and Atlantic City being the central locations, sports betting has also seen massive expansion, with more and more states legalising and regulating it.
Meanwhile, Canadians tend to veer towards casinos and lotteries. However, Mexico is quickly catching up with its neighbours – with sports betting currently taking centre stage
The North American gaming industry is one of the most exciting in the online gaming world right now – with its ever-changing regulations, technological advancements and changes in player preferences – and Mexico plays a significant part in that.
Conclusion
Ultimately, the Mexican online gaming sector is thriving – getting bigger, better and more regulated as time goes by. This is an industry that looks set to offer huge opportunities for industry players and an enjoyable and safe gaming experience for Mexican gamblers. We’re excited to see where it goes in the future.
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