President Claudia Sheinbaum has finally confronted the glaring liabilities of Mexico’s gambling laws. Yet her actions appear driven more by  growing scandals than by a genuine effort to replace an 80-year-old legal charter, reports Damian Martinez of SBC Noticias.  

Confronted by national media in the glare of a widening scandal, Claudia Sheinbaum has stated that Mexico’s gambling laws must be modernised to combat criminal activities that have exposed and benefitted from current liabilities.

On Wednesday, the President of Mexico held a press conference in which she acknowledged the flaws of a gambling regime governed by the Federal Law of Games and Lotteries of 1947.

“The regulations for online casinos must be updated, because when the law was created, this way of betting didn’t exist,” Sheinbaum said. “As a result, it must now be regulated, because otherwise it opens the door to money laundering.”

Her remarks followed revelations that 13 casinos are under federal investigation for allegedly facilitating multimillion-peso cash movements and international currency transfers aligned with recognised money-laundering typologies.

At a subsequent briefing, Omar García Harfuch, Secretary of Security and Citizen Protection, revealed that both physical and virtual casinos had, exposed “patterns of risk, fiscal irregularities, unusual operations and transnational financial connections that compromise the integrity of the financial system.”

The joint investigation carried out by the Financial Intelligence Unit, Federal Fiscal Prosecutor’s Office and the Attorney General’s Office has led to the temporary suspension of multiple venues, the blocking of online gambling sites, and the freezing of accounts linked to suspect operations.

Federal police  described intricate schemes in which online casinos used identity theft and prepaid cards to move money abroad before returning it to Mexico as “legitimate” business income.

 A relic of prohibition

The scandal draws renewed attention on the structural weaknesses of the 1947 law, a relic that views that gambling should be tolerated by Mexican authorities rather than legitimately governed.

More than a decade in power, the MORENA government continues its transition from the administration of Manuel López Obrador to Claudia Sheinbaum’s presidency.

Yet a sidelined gambling sector and police authorities are mounting pressure to repeal and replace the legislation, a reform long stalled in committee amid concerns over corruption, tax evasion and moral opposition from religious and conservative groups.

Last month, Congress approved Sheinbaum’s 2026 national budget, which introduces sweeping increases in IEPS (Special Tax on Production and Services)—the so-called sin taxes. The measure doubles levies on gambling, sugary drinks, violent video games and tobacco, with the government arguing it will strengthen public finances and discourage harmful consumption.

Industry demands 2026 guarantees

Mexico’s regulated gambling industry is worth an estimated $10 billion, modest beside the more liberal markets of Brazil, Colombia and Argentina. Yet the sector remains fragmented, divided between state-level permits and administrative licences issued by the Interior Ministry (SEGOB) and lacking a coherent national framework for online play.

Industry groups and trade associations have urged the government to begin legislative modernisation in 2026, insisting that the sector underpins tens of thousands of jobs and contributes significantly to hospitality, tourism and entertainment—pillars of the economy that Mexico hopes to showcase as it co-hosts the FIFA World Cup alongside the United States and Canada.

The Mexican Association of Gaming Suppliers (AIEJA) has long urged the government to modernise the country’s gambling laws. In previous campaigns, the trade body presented detailed proposals to transform gambling into an economically positive sector that could stimulate hospitality, leisure and tourism.

AIEJA argued that properly regulated gaming could enhance the appeal of Mexico’s resort destinations and generate substantial tax revenue. The vision was not to rival Las Vegas, but to harness the industry’s potential as part of a broader economic ecosystem. Successive administrations, however, rejected these proposals, with MORENA maintaining that the risks of liberalisation outweighed the fiscal rewards.

Failure will cost MORENA

The political question now is whether MORENA can deliver. Sheinbaum’s government must strike a delicate balance: tightening controls against illicit finance while legitimising an industry long treated as marginal. Success will require more than legislative tinkering; it demands institutional rebuilding—aligning fiscal, security and tourism policies around a sector newly recognised as economically vital.

If the administration succeeds, Mexico could emerge from 2026 with a modern, transparent gambling framework fit for the digital age. If it fails, it will greet the World Cup as a co-host still struggling to keep the game fair—off the pitch as much as on it.