Regulatory compliance and risk prevention report: igaming Mexico 2026

Prepared by: LC Gaming, in strict observance of national legal frameworks and international due diligence standards.

 I. Current Legal Framework and Regulatory Environment.

 The operation of gaming and sweepstakes activities within national territory is governed by the Federal Law on Games and Sweepstakes (LFJS) and its Regulations. Current regulatory compliance must address the recent evolution of the legal ecosystem:

• Validity of Concession Titles: Following the regulatory reforms of November 2023 (specifically the amendment of Art. 91 and the repeal of Art. 137 Bis), the legality of remote gaming operations is sustained by the principle of non-retroactivity and, in specific cases, by stays and injunctive relief (medidas cautelares) ratified by the Federal Judiciary.
• Principio de Legalidad Monetaria (Monetary Legality): Based on the Monetary Law of the United Mexican States, the collection of bets or the payment of prizes in currencies other than the Mexican Peso (MXN) is strictly prohibited, ensuring financial traceability within the national banking system.

 II. Due Diligence and Anti-Money Laundering (AML) Obligations.

 In accordance with the supervisory powers of the Ministry of the Interior (SEGOB) and the guidelines issued by the Financial Intelligence Unit (UIF), permit holders are subject to the following controls:

• Legal Capacity and Age Control: Mandatory implementation of authentication protocols to ensure the total exclusion of minors, in compliance with the best interests of the child and regulations for the protection of vulnerable groups.
• Know Your Customer (KYC): Integration of identification files that allow for the definitive verification of the user's identity, uniquely linking the ownership of the gaming account with the payment instruments utilized.
• Reporting Thresholds: In compliance with the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin (LFPIORPI), any transaction that equals or exceeds 645 Units of Measure and Update (UMA) must be reported through the corresponding notices to the tax authorities.
• Record Keeping: The obligation to safeguard and maintain the availability of identification information and transactional records for a minimum period of ten years, aligned with the recommendations of the Financial Action Task Force (FATF/GAFI).

 III. Mitigation of Legal and Operational Risks.

 To safeguard the operating license and the entity's legal liability, the following legal security protocols are established:

• Identity Theft Prevention: Application of biometric verification criteria to ensure the will of the holder and mitigate the risk of nullity in gaming contracts due to flaws in consent.
• Detection of "Money Mules" and Illicit Resources: Constant monitoring of transactional patterns to prevent the platform from being used as a vehicle for the placement, layering, or integration of resources derived from criminal activities.
• Multi-Account Control: Security mechanisms aimed at preventing duplicate records, ensuring that compliance with betting limits and responsible gaming policies are applied uniquely per natural person.
• Transactional Transparency and Certainty: Application of data audits and supervision rules to guarantee that every capital flow, both in deposits and withdrawals, is fully auditable by regulatory authorities at any time.

IV. Compliance Conclusion.

The LC Gaming protocol guarantees that the operator acts under the principles of legality, honesty, and transparency, mitigating administrative and criminal contingencies arising from non-compliance with the reporting and identification obligations required by the Mexican State.

*Gerardo Ballesteros Félix Díaz, is a Lawyer Specializing in Games and Sweepstakes and senior partner of the law firm LC Gaming.