EP610: Mexico Gaming Reform: What Needs to Change?

Carolina Vallejo (0:05)

Hello, we are here in SiGMA North America 2026 with Alfredo Lazcano, partner in Lazcano Sámano. Alfredo, welcome.

Alfredo Lazcano (0:14)

Thank you. Thank you for having me.

Carolina Vallejo (0:17)

Alfredo, tell us a bit about yourself.

Alfredo Lazcano (0:20)

Yeah. My name is Alfredo Lazcano, as you said, and I am a Mexican gaming lawyer.

I have been working in this fantastic industry for almost two decades since 2007 We're basically focused in international companies, technology companies seeking to do business in Mexico. Yeah.

Carolina Vallejo (0:50)

Alfredo, let's start with the first question. Mexico gaming framework has been under scrutiny for years. What are the key regulatory reforms you believe are still needed to create for a more modern and competitive market?

Alfredo Lazcano (1:04)

Yes. I think, I mean, there could be like a lot of areas of opportunity to improve, but I've always stick to five main potential areas of opportunity that we can have if a reform comes. The first one has to do with the, to promote the independency of the regulatory body. Also, we are very supportive of technical standards based on international technical standards. And also, something that Mexico doesn't have at the moment well regulated is the direct licensing of operators and also licensing of suppliers.

Another important change to take into count for any potential reform has to do of course with the reasonable taxes.

And finally, but not lastly, it's anything that has to do to complete with the framework on responsible gaming. Okay.

Carolina Vallejo (2:21)

Okay, so illegal gambling remains the major challenge across Latin America. What practical steps should regulators and licensed operators take to a better fight the black market?

Alfredo Lazcano (2:33)

Yeah, I think that the it is hard, no, it is hard to find ways to really effectively combat illegal gambling.

However, I think that the most or probably one of the few effective strategies that the most mature jurisdictions are doing has to do with the law enforcement against suppliers, okay? The suppliers, of course, of the black market. And mainly, I will divide that type of suppliers in three. It has to do with enforcement against payment processors, PSPs, also marketing companies, media, particularly influencers, that sometimes they don't even know that they are promoting illegal sites and committing felonies. And also with all kinds of gaming suppliers, no? Manufacturers in the case of land-based and also software platform, suppliers, providers of the iGaming space.

Carolina Vallejo (3:48)

Alfredo, you have advised both operators and government bodies. Where do you see the biggest disconnect between policymakers and realities of the regulated gaming industry?

Alfredo Lazcano (3:59)

Thank you. Yeah, there could be, I think that there could be a lot of disconnected points. However, I will give you three examples of that disconnection that sometimes happened between policymakers and operators.

The first one will be when policy makers or legislators, regulators, they impose more restrictions on licensed operators than in combating illegal gambling. So that will be one, of course. Also, there's another one that is very important, and it has to do with something that I already mentioned, gaming standards, technical standards. And that happens when policy makers try to reinvent the wheel when it comes to international standards. And they start, for example, writing their own native technical standards, when in reality, there are a lot of international standards already there that are constantly evolving and getting up to date with the latest technologies.

The third example would be when policy makers, and I also mentioned this, increase taxes. Any kind of tax hike, and there's a lot of information around there, out there, in other jurisdictions, official numbers, that when you increase a tax without any justified exercise, the only thing that grows, it's illegal gambling, not tax revenue.

Carolina Vallejo (6:04)

Okay, consumer protection is becoming a bigger priority for regulators worldwide. How can the industry strength safe the guards without creating unnecessary barriers for licensed operators and their consumers?

Alfredo Lazcano (6:18)

Okay, there could be a lot, no? So probably we would need not more time to describe them. But trying to follow the same line of our conversation, I think that combating illegal gambling is the best way to protect consumers because illegal operators, they don't take care about consumer rights, about responsible gaming policy, particularly with compulsive gamblers, problem gamblers or miners, or other persons that are in disadvantaged situations.

So I think that the best way to protect consumers is fighting illegality.

Carolina Vallejo (7:09)

Alfredo, thank you very much. Thank you for being with us and we will see you in another time.

Alfredo Lazcano (7:14)

Thank you very much. Thank you very much to you.