Atlaslive is a company that provides top-quality software solutions for the iGaming business, with a deep focus on the Mexican iGaming market, as it is one of the largest iGaming markets in Latin America.
This article gathers valuable data from Atlaslive, including metrics and comparisons with the broader Latin American region, showcasing Mexico's unique position and its potential for rapid growth.
Mexico's online gambling market perfectly integrates rich culture with the evolution of regulation. Gambling has been a part of Mexican culture for centuries, and the country's online gaming regulatory framework has also evolved to meet the needs of modern players.
It was not until 2004, with the passage of the Federal Games and Draws Law, that online gambling was officially allowed, and legal online casinos and sports betting emerged. Although Mexico still retains some restrictions, this regulatory shift has paved the way for domestic and international operators to enter the market.
Today, Mexico's online gambling market is one of the largest in Latin America, with a growing demand for online casinos and sports betting. Despite the regulatory framework, Mexican players prefer sports betting, especially during major football matches in the Mexican league and international tournaments.
Atlaslive sees this as an opportunity not only to cater to these popular trends but also to provide customizable iGaming solutions to meet players' expectations and regulatory requirements.
By balancing innovation with compliance, it ensures a safe, attractive experience tailored for the Mexican market.
The Rise of the Mexican iGaming Industry: Revenue, Player Behavior, and Market Coverage
To better understand the development trajectory of the Mexican market, it is important to focus on data-driven insights and delve into key metrics shaping the future of Mexican iGaming, including total revenue forecasts, average revenue per user (ARPU), and market penetration across major categories.
Total Revenue Growth and Projections for 2028
Looking at the total revenue of Mexican iGaming, the market is expected to maintain a steady upward trend. As shown below, total revenue is projected to grow from $2.05 billion in 2022 to $3.7 billion by 2028. This growth is primarily driven by online sports betting and casinos, reflecting the increasing participation of Mexican players on online platforms.
The continuous growth in revenue indicates an expanding player base and an increase in spending per user, especially in sports betting. This growth aligns with global trends, as more consumers turn to digital entertainment forms supported by the increasing prevalence of mobile devices and improvements in internet infrastructure.
Expected Revenue Growth Decline as a Sign of Market Maturity
A significant part of the overall situation of the Mexican iGaming market is the percentage change in revenue, which clearly shows the speed or gradual nature of market expansion.
This surge is driven by the global shift to online platforms during the pandemic, when players increasingly turned to digital entertainment options.
However, as the market matures, the growth rate naturally declines.
This indicates that the initial boom in user adoption and spending has stabilized. While this suggests market maturity, it also highlights the need for operators to focus on retention and enhancing player engagement strategies to sustain growth.
This shift from rapid expansion to sustained growth is an opportunity to leverage player loyalty programs, gamification, and innovative product offerings to maintain a strong foothold in the market.
Being highly flexible technologically helps adapt to these changes and respond to the emerging needs of players and operators.
With the steady growth of total revenue in Mexican iGaming and the normalization of market growth rates, the country remains a lucrative and vibrant space for operators ready to adapt and innovate through customizable technological capabilities. Atlaslive continues to offer cutting-edge, flexible solutions designed to meet these evolving positive dynamics.
Contribution to the Market: ARPU Analysis
ARPU (Average Revenue Per User) tells another compelling story, indicating how many individual participants contribute to the market. For online sports betting, although ARPU has dropped from $526.8 in 2017,
ARPU is expected to climb again, reaching $434.3 by 2023 and rising to $524.2 by 2028.
This recovery highlights the resilience of the sports betting sector and reflects a broader trend of increased user engagement and higher-value betting.
In contrast, the ARPU for online casinos continues to grow, rising from $102.1 in 2017 to $216.3 by 2028.
This steady growth indicates that online casinos are attracting more serious, higher-spending players, possibly influenced by a broader selection of games and enhanced user experiences. The ARPU for online lotteries, although more stable, remains lower compared to other categories, possibly due to its more casual player base.
Market Penetration: Exploring the Future of Mexico's Three Key iGaming Segments
Perhaps the most persuasive indicator is the penetration rate, which reflects the popularity of each category among the Mexican population. The penetration rate for online casinos is expected to continue climbing at an astonishing rate, from
1.24% in 2017 to 4.30% by 2028, outpacing the growth of other categories. This indicates a growing interest in casino-style gaming, possibly driven by its increasing popularity among a broader audience.
Meanwhile, online sports betting also shows steady growth, reflecting its close connection with local sports culture, especially during major events and international football tournaments. Online lotteries, although having the smallest penetration rate, remain stable, with an expectedincremental growth to 2.81% by 2028.
In Mexico's rapidly growing iGaming market, rising ARPU and expanding penetration rates show clear signs of increasing player engagement and audience growth. Atlaslive is a dynamic iGaming platform that knows how to help operators leverage this growth with flexible solutions that align with market trends and local regulations.
Closer Look at Players and the Top Three iGaming Categories
With a population of approximately 130 million and an urbanization rate of 81.6%, Mexico is a young and rapidly growing digital entertainment market, including iGaming. The country is one of the youngest in terms of global population structure, with an average age of 30.8 years.
These factors make Mexico a top contender in the global iGaming market and one of the countries with the highest monthly visits to casino websites. The combination of a young, urbanized, and tech-savvy population makes Mexico an extremely fertile ground for online gaming growth.
Why 6 Million Mexicans Will Play Online Casinos by 2028
When evaluating Mexican iGaming players by category, it's clear that significant growth is anticipated.
This reflects a growing interest in the interactive, immersive gaming experiences offered by casinos, possibly driven by technological advancements such as mobile gaming and virtual reality, which continually make casino games more accessible and appealing to a broader audience.
Historically, the appeal of casino-style gaming in Mexico can be traced back to its rich gaming and competition culture traditions. Today's players combine this historical love for games of chance with modern conveniences and the accessibility of different gaming platforms.
The Driving Forces Behind Mexican Sports Betting
Online sports betting
is another category with deep cultural roots in Mexico, particularly in the realm of football, showing continued growth. In 2017, the number of sports betting players was 1.5 million, expected to more than double by 2028, reaching 3.3 million. Sports, especially football, play a central role in Mexican life, and betting on these events only enhances fan engagement.
The revenue generated from online sports betting is expected to grow exponentially, from $590 million in 2017 to$1.74 billion by 2028.
Online Lottery: A Stable and Growing Part of Mexico's Online Gambling
It's noteworthy that the lottery is a deeply ingrained tradition in Mexico, offering a more casual, easy-to-engage form of gaming. The enduring popularity of the lottery is supported by players seeking low-risk, high-reward opportunities, providing operators with a stable source of income.
Although small compared to casinos and sports betting, lottery revenue is expected to grow steadily to $660 million by 2028, maintaining its status as a reliable source of income for operators.
Atlaslive offers comprehensive iGaming solutions covering all major game categories, including online casinos, lotteries, virtual games, and sports betting. The platform continues to evolve, adding new features and tools to provide the best user experience in the market. By collaborating with well-known game providers, payment systems, and operators from different regions, Atlaslive remains adaptable and keeps pace with market trends.
Comparison with Latin America: Mexico's Position
Latin America is rapidly becoming a key region for online gambling operators seeking to enter new markets. The region is diverse and actively developing, with regulations and growth gradually taking shape over the past few years. Mexico is one of the key markets in the region, and interesting comparisons can be made when you compare it with broader Latin American trends.
ARPU Comparison
From 2017 to 2028, ARPU in Latin America has steadily climbed, starting at $1,005.72 in 2017 and reaching $1,973.60 by 2028.
On the other hand, Mexico's ARPU is much lower, starting at $386.49 in 2017 and gradually increasing to $400.43 by 2028. The clear difference suggests that the higher ARPU in Latin America may be due to more diversified betting options and greater player spending.
The slower growth of Mexico's ARPU may be due to different player habits or slower acceptance of gambling activities. Mexico's gradual growth may also be influenced by specific rules or economic factors that affect the number of players compared to other regions in Latin America.
Total Revenue Comparison
Total revenue tells a similar story on a larger scale. Revenue growth in Latin America is strong, jumping from $17.6 billion in 2017 to $119.5 billion by 2028.
Mexico's growth rate is slower, increasing from $9.5 billion in 2017 to $37.0 billion by 2028. While Mexico is growing, it is not keeping pace with the market in other regions of Latin America.
The main contributors to growth in Latin America may come from markets like Brazil and Argentina, where iGaming expansion is faster. Mexico's slower growth may be hindered by regulatory challenges or market fragmentation, preventing it from fully realizing its potential.
Mexican iGaming Market Licensing and Regulation
Mexico is one of the largest and most promising online gaming markets, but its regulatory framework still faces some challenges. Although Mexico became a pioneer in gambling regulation 15 years ago, by 2024, many operators still lack the necessary SEGOB licenses issued by federal authorities.
The Federal Games and Draws Law of 1947 remains the main legal structure for the industry. Although it is old, it has been updated to address modern issues such as money laundering, integrity, and online gaming. Unlike countries like Spain and Argentina, where the gambling industry is regulated at the provincial level, the Mexican federal government is responsible for all gambling activities.
Technological advancements and the continuous participation of local and international operators have driven market development, especially as Mexico prepares to co-host the 2026 FIFA World Cup. Under this momentum, efforts to modernize gaming regulations are accelerating, and the rules for online gaming are expected to become clearer soon.
Despite progress, challenges remain, especially for unlicensed operators who continue to operate without legal oversight, highlighting the need for enhanced enforcement to ensure full compliance.
Despite some challenges, with the support of rising consumer demand and penetration rates, the Mexican gaming industry has achieved remarkable growth.
Many international operators are partnering with authorized companies in Mexico to further expand the market. Sports betting, especially football and baseball, is a major attraction, with football drawing the most attention.
