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Terminal-based gaming Terminal-based gaming might be considered as draws of symbols or numbers through devices. Bingo Bingo is under the category of draws of symbols or numbers. Lottery A lottery is under the category of draws of symbols or numbers. What is the licensing regime if any for land-based gambling? The Gaming Law and the Gaming Regulations do not make a distinction between games of skill or games of chance.

In any event, such a distinction might be irrelevant since the element that determines whether any form of activity is a gambling product, and therefore subject to authorisation from SEGOB, is whether there is a wager. However, from a practical perspective, the current President has stated on multiple occasions that during his term no new gaming permits will be issued or granted by the SEGOB. Available licences The following permits are available: Permits for the taking of wagers in horse race tracks, dog race tracks, racket traditional ball game fronton venues, and for the installation of remote betting facilities and rooms for the conduct of number or symbol draws.

Permits for the taking of wagers in regional fairs. Permits for the taking of wagers in horse races in provisional or temporary race tracks and cock fights. Permits to conduct draws. Article 20, Gaming Regulations. The specific gaming activities that can be carried out by a permit-holder depend on the individual terms of each permit granted by SEGOB. If the permit-holder intends to carry out any activity other than the ones expressly authorised, a separate permit must be obtained.

Eligibility The permits listed above will only be granted in the following cases: Permits for the taking of wagers in horse race tracks, dog race tracks, and so on, will only be granted to Mexican commercial companies. Permits for the taking of wagers in regional fairs will only be granted to Mexican entities. Permits for the taking of wagers in horse races in provisional or temporary race tracks and cock fights will only be granted to Mexican commercial companies and individuals.

Permits to conduct draws will only be granted to Mexican individuals or entities. The length of the procedure to obtain the permits will depend on, among others, the: Full and correct delivery of all the necessary documents and requirements to the Gaming Bureau. Number of permits that are under review. Type of permit and other elements that may be considered before the issuance of a permit.

Other external elements that is, the current valid permits granted per activity or area. There are various specific requirements to be complied with by all applicants for the different types of gambling activities. Applicants must file detailed information on the reasons, manner, time frames and location of their operation so that the authority can assess compliance with all the applicable requirements.

The legislation does not provide for specific time frames in which the SEGOB must grant permits, however, under the Federal Administrative Procedural Law, if the authority does not issue a resolution within four months from the date of filing, the request should be deemed to be denied. Duration of licence and cost The duration of the various permits under Article 33 of the Gaming Regulations is as follows: Permits for taking wagers in horse race tracks, dog race tracks, fronton venues, as well as for installing remote betting facilities and rooms for number or symbol draws: between one year and 25 years and can be renewed for year periods, which is typically stated in the relevant permit.

Permits for taking wagers in regional fairs, cock fights and temporary horse race tracks: up to 28 days or the duration of the authorised season. Permits for draws for advertising purposes last until the delivery of the relevant prizes.

Permits for draws with tickets, without tickets or instant draws: up to one year. The Gaming Bureau has discretion to determine the duration within the limits set out above. The permits are free of charge, but depending on each type of permit and the prizes to be received or the income the permit-holder obtains from undertaking the authorised gambling activities, permit-holders may have to pay rights or duties.

However, permits are non-transferable and cannot be transferred, or assigned in any manner Article 31, Gaming Regulations. What are the limitations or requirements imposed on land-based gambling operators? Once permits are issued, permit-holders or operators must comply with several provisions related to their organisational corporate documents, transfer restrictions and operative schemes.

Prohibitions The only express prohibition on land-based gambling is found in Article 9 of the Gaming Law. This states that places where games and bets are crossed, or where draws are wagered, must not be established close to schools or offices. Restrictions There is no specific limitation or requirement for permit-holders, such as a ban on local residents gambling. Article 5 of the Gaming Regulations lists general access restrictions on gaming facilities to individuals who are: Minors under 18 years.

Under the influence of alcohol. Carrying weapons of any kind. Police or military officials on duty. Disturbing the peace of the facility with their behaviour. Under the provisions of the Anti-Money Laundering Law, any gaming transactions considered as "vulnerable activities" must be identified.

Games with wagers or draws that result in transactions equal to or more than the measure and actualisation unit multiplied by are considered as "vulnerable activities" under the Third Transitory Article of the Constitutional Amendment of 27 January , references made to minimum wage as an index, measure, basis, or reference are understood as references to the measure and actualisation unit. In the value of the measure and actualisation unit is MXN The permit-holders who operate such activities are required to report to SHCP when such transactions equal or exceed the measure and actualisation unit multiplied by Article 17, section I, Anti-Money Laundering Law.

With respect to gambling activities, permit-holders must Article 18, Anti-Money Laundering Law : Identify the users and confirm the information provided through official documentation, and maintain copies of this documentation. If a business relation is established, require the users or clients to state their occupation. Confirm with customers the information regarding the beneficiary of the activity, if applicable.

Save, protect and avoid the destruction or cover-up of information or documentation regarding the vulnerable activity. Grant access to undertake visits and inspections. Carry out reports and filing obligations. Complying with the Anti-Money Laundering Law obligations will require a significant use of human and administrative resources by permit-holders who must assign personnel and implement procedures, create manuals and systems to exercise proper control to detect vulnerable activities, maintain and preserve information and documents gathered from clients and file monthly notices.

Permit-holders can only pay prizes in cash up to a certain amount approximately, MXN, What is the licensing regime if any for online gambling? Online gambling is not specifically regulated in Mexico. Some indirect references to online activity appear in the Gaming Regulations, addressing issues related to online gambling, however, these references cannot be considered as a thorough or precise regulation of online gambling activities. This broad discretion is evidenced in some, but not all, issued permits granting specific authorisation for the conduct of internet gaming or online gambling as determined by SEGOB, pursuant to the Gaming Law and Gaming Regulations.

The Gaming Law is silent on online gambling, which should not, however, be considered as a prohibition on conducting or operating authorised gambling activities using a specific means of communication such as the internet, because: The Gaming Law was published in long before the internet existed. If a gaming activity has been authorised, under the broad terms of the Gaming Law, SEGOB must, as a matter of practice, set out with reasonable specificity the terms and conditions of such authorisation in the corresponding gaming permits.

Gambling via the internet or other electronic means is therefore seen as a different means of conducting an authorised gambling activity. Article 85 of the Gaming Regulations provides for remote betting gaming facilities to take bets over the internet, the phone or electronically, for which purpose they must establish an internal control system for the transactions performed using those means of communication, describing in writing the proceedings and rules that assure the integrity of the games is protected and to prevent the manipulation of the betting system.

Such a system must record at least, the: Account number and identity of the individual placing the bet. Date, time, number of transactions, wagered amounts and a record of requested picks or selections. In these cases, the wagers and bets are considered to be placed when payment confirmation is received from the corresponding banking institution, regardless of whether the confirmation is made to the player or the permit-holder. The player must have access to consult or print a certification of their folio number and be informed of their rights arising from the gambling transaction.

Telephone wagers must be recorded in an audio file. Despite the strict interpretation of the apuestas reference, it is not only bets on sporting events may be crossed using online means of communication. Under Article of the Gaming Regulations, draws can be conducted by the internet or the telephone network, and therefore it can reasonably be interpreted that any form of bet, which includes any form of authorised draw, can be conducted through electronic means.

The apparent contradiction in the Gaming Regulations has, as previously mentioned, been resolved in favour of broader internet wagers on gaming, through SEGOB's issuance of permits that are more inclusive of online games.

The limitations must also be set out in the internal gaming regulations, and are specific to each permit-holder. Therefore, each permit-holder's gaming regulations approved by SEGOB can limit or broaden the extent of the gambling activities conducted via the internet or through other telecommunication means. As a result, the specific type of online gambling products and the extent to which they can be conducted or offered depend on the scope of each permit, the permit-holder's internal gaming regulations approved by SEGOB, and the methods approved by SEGOB.

In addition, under Article of Chapter I of Book Four of the Gaming Regulations, where draws are conducted in the Mexican territory in which participants are obtained through the internet or telephone, a folio number must be given to the participant, and in each case the player or participant must have online access to consult or print a certification of their folio number and the rights to which they are entitled as participants of the draw.

The winner of the draw may be determined by the use of computer systems which, applied adequately, randomly determine the winning numbers. Available licences As stated, under the current Gaming Law and its Regulations there are no available licences specific for online gambling activities. Eligibility Some permit-holders have launched their own internet gambling websites to take wagers via the internet, allowing different kinds of payments.

Only permit-holders who conduct authorised gambling activities will be eligible to conduct the same gambling activities for which they are authorised using online or other electronic means. Application procedure Currently the application procedure is the same as for any land-based gambling operation see Question 5.

Duration of licence and cost Duration and cost are the same as for land-based gambling activities see Question 5. Changes of corporate control 8. What are the limitations or requirements imposed on online gambling operators? There are no specific provisions applicable for online gambling operators in Mexico. Also, there are no independent or autonomous online gambling activities currently authorised in Mexico: any online gambling operation must be linked to a land-based gambling permit see Question 6 and Question 7.

Prohibitions The prohibitions are the same as for land-based gambling activities see Question 6. Restrictions The restrictions are the same as for land-based gambling activities see Question 6. Anti-money laundering legislation The anti-money laundering legislation is the same as for land-based gambling activities see Question 6.

B2B and B2C 9. Is there a distinction between the law applicable between B2B operations and B2C operations in online gambling? This permit should expressly allow the offering of any such online gambling products. The ability to offer these products will also be determined based on the permit-holders' internal gaming regulations approved by SEGOB, as well as the methodology to conduct gaming activities via the internet or using other means of communication approved by SEGOB.

There is no restriction governing or regulating the offering of B2B services to a Mexican permit-holder who has been authorised to offer online gambling products, as long as the ones contracting with the player are the directly authorised permit-holders, even when such online gambling products are offered through a white label site run by a third-party supplier.

As the offering is in conjunction with the permit-holder's authorisations, the activities of the B2B provider will be bound by the permit's requirements and approved methodologies for online play. As a result, SEGOB can dictate server location and any and all technical aspects of the B2B provider's operations as they are derived from the permit-holder's authorisation.

Technical measures What technical measures are in place if any to protect consumers from unlicensed operators, such as ISP blocking and payment blocking? There are no technical measures in the Gaming Law or the Gaming Regulations to protect consumers from unlicensed operators. Despite this, there are non-mandatory Mexican Official Standards NOMs designed to assure consumers that the gaming electronic equipment and the systems used for online gaming are sufficiently robust and assure a fair result from the gaming activity.

Mobile gambling and interactive gambling What differences if any are there between the regulation of mobile gambling and interactive gambling on television? There are no differences between the regulation of mobile gambling and interactive gambling on television.

However, whether mobile and interactive gambling on television can be offered depends on the scope of the individual permit-holder's authorised activities, internal gaming regulations approved by the Ministry of the Interior SEGOB , and the approved methods of conducting gaming activities. Social gaming How is social gaming regulated in your jurisdiction?

In the context of social gaming, or gaming content offered on social networks, if games are free to play, such gaming activity would not be subject to the Gaming Law and the Gaming Regulations and would not be specifically regulated by any other statute in Mexico. However, given the nature of Mexican gaming statutes outdated, ambiguous and giving the regulator a great deal of discretion , some entities undertaking social gaming activities have approached the Gaming Bureau to obtain a ruling or written confirmation of permitted criteria.

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