- July 10, 2023
Today, TC-GAMING is going to talk to you about the Mexican betting market and the Mexican White Label. Latin America is home to several high-potential iGaming markets, and Mexico plays one of the leading roles in it. As a country with a large number of gamblers and a strong economy, Mexico is definitely the place for diversified online casino business expansion.
About Mexico at a Glance
Mexico is also a beautiful country with a long history and culture, and as the third largest country in Latin America and the 14th largest in the world, it boasts a huge population size. As of 2020, the total population of Mexico as a whole reaches 130 million. Mexico outpaces most of its neighbors in terms of population, economic progress, and technological development.
At the same time, Mexico is a country with a relatively open iGaming industry. It also creates opportunities and challenges for the iGaming industry. As we all know today, the iGaming industry has become one of the major economic components of some countries. Many Mexicans opened up iGaming platform and land-based casinos. It has also made the country of Mexico attractive to tourists and investors from all over the world.
Despite its ups and downs in the past, Mexico is emerging as one of the economic powerhouses in Latin America, producing oil and silver, and has been greatly boosted by the free trade agreements with the United States and Canada (NAFTA) in particular. With a GDP of US$1.28 trillion as of 2021, Mexico is now the second-largest economy in the region after Brazil and the 15th-largest in the world. Mexico's GPD per capita as of 2022 is US$10.934. That's actually only about US$1,500 less than China's US$12,556.
(Mexico's GPD per capita)
(Mexico's GPD per capita)
Mexico's Internet Situation
The rise and popularity of the internet have had a huge impact on the iGaming industry in Mexico. With more and more people accessing and using the internet, the iGaming market in Mexico has grown rapidly and is showing great promise. The popularity of the internet has made it easier for Mexican bettors to participate in various online betting games. Enjoy the entertainment of betting anytime, anywhere. This convenience has fueled the growth of the iGaming market in Mexico. It is attracting more and more players to participate in iGaming.
As of early 2023, Mexico had 100.6 million internet users with an internet penetration rate of 78.6%.
In January 2023, there were 94 million social media users in Mexico, equivalent to 73.4% of the total population.
At the beginning of 2023, Mexico had 123.5 million active mobile connections, a figure equivalent to 96.5% of the total population.
Mexico's population in 2023
As of January 2023, the total population of Mexico was 128 million. This number continues to increase over time. Between 2022 and 2023, the population of Mexico increased by 0.96 million, or 0.8% of the total population. Considering this growth trend, we can also predict considerable population growth in the coming years.
Mexico has a very balanced population distribution. Of the total population, 51.2% are female, and 48.8% are male. If we compare this figure with other countries, Mexico's gender ratio is very close. This balanced gender ratio also reflects the equality and diversity of Mexican society.
In addition, Mexico is a highly urbanized country. According to statistics, 81.4% of Mexicans live in urban areas, and only 18.6% live in rural areas. This urbanization trend is also increasing as more and more people flock to cities for better job opportunities and living conditions.
Age Divisions in Mexico
According to the latest statistics, Mexico's demographics are trending younger. Currently, the average age of Mexico's population is 29.7 years old, of which 11.7% are between 18 and 24 years old, accounting for a higher proportion of the total population; 15.7% are between 25 and 34 years old, also occupying a considerable proportion; 14.0% are between 35 and 44 years old; 12.0% are between 45 and 54 years old; and 8.7% are between 55 and 64 years of age, and 8.5% are 65 years of age and older.
As can be seen, Mexico has a relatively high proportion of young people, while the proportion of older people is gradually increasing.
Internet usage in Mexico
The popularity of the internet has injected new vitality into the iGaming market. Nowadays, more and more people are using the internet to bet instead of going to traditional betting venues. The convenience of online betting has also greatly improved the betting experience for players. Betting can be done from the comfort of one's home or anywhere with an internet connection. In addition, the diverse experience is one of the reasons why players prefer online betting for iGaming, such as the wide variety of bet types and staking options.
As of January 2023, the total number of internet users in Mexico has exceeded 100.6 million, with a penetration rate of 78.6% of the total population. This means that between 2022-2023, the number of internet users in Mexico increased by 4.6 million (a growth rate of 4.8%). However, about 27.36 million people still don't have Internet access, representing 21.4% of the total population.
Number of Mobile Connections in Mexico
According to GSMA Intelligence, Mexico will have 123.5 million cellular connections by early 2023, equivalent to 96.5% of the country's total population. However, many users use multiple Internet connections, so the number of connections sometimes exceeds the population.
The number of mobile connections in Mexico increased by 4.4 million between 2022 and 2023, a growth rate of 3.7%.
Mexico Social Media Statistics
As of January 2023, the number of social media users in Mexico is 73.4% of its total population.
Meanwhile, 87.85 million users aged 18 and over in Mexico use social media, which is equivalent to 97.1% of the total population of people aged over 18.
On the other hand, 93.4% of the total number of Internet users in Mexico use at least one social media outlet.
And 52.7% of Mexican social media users are women, and 47.3% are men. (PS: one social media does not mean one user, sometimes a user has more than one social media account)
Number of Facebook Users in Mexico
According to Meta Ad Resource data, Facebook had 83.75 million users in Mexico at the beginning of 2023. However, the data suggests that between 2022 and 2023, Facebook's potential advertising reach in Mexico decreased by 6 million (-6.6%). The most recent data shows a 4 million (-4.6%) decrease in marketers' reach through Facebook ads between October 2022 and January 2023.
In fact, I believe that the decrease in ad users may be due to an increase in the number of TikTok users, resulting in more businesses investing their advertising budgets in TikTok.
Number of TikTok users in Mexico
According to data published by ByteDance Advertising Resources, by the beginning of 2023, TikTok will have 57.52 million users aged 18 and older in Mexico.
As of early 2023, TikTok ads reach 63.6% of all adults 18 and older in Mexico. The ad reach equates to 57.2% of local internet users, regardless of age.
At the beginning of 2023, 58.3% of TikTok's advertising audience in Mexico was female, while 41.7% was male.
Meanwhile, TikTok's own ad planning tool released data showing that TikTok's potential ad reach in Mexico increased by 11 million (+25.0%) from early 2022 to early 2023.
This also validates one of the reasons for the decrease in Facebook's ad reach.
Number of YouTube users in Mexico
According to the Google AdSource update, YouTube had 81.8 million users in Mexico at the beginning of 2023. This is equivalent to 63.9% of the total population of Mexico. Ads reach 81.3% of the total internet users, regardless of age, in Mexico.
The advertising audience is 50.0% female and 50.0% male. Also, from the beginning of 2022 to the beginning of 2023, YouTube's potential advertising reach in Mexico increased by 1.2 million (+1.5%).
Number of Instagram users in Mexico
At the beginning of 2023, Instagram has 36.7 million users in Mexico. The advertising reach is equivalent to 28.7% of the total Mexican population. This corresponds to 36.5% of the local Internet user base, regardless of age.
Of this advertising audience, 54.1% are female, and 45.9% are male. Between 2022 and 2023, Instagram's potential advertising reach in Mexico decreased by 1.2 million (-3.0%). The data also shows that between October 2022 and January 2023, Instagram's ad audience size in Mexico decreased by 1.3 million (-3.4%).
I think it's all about TikTok stealing Instagram's market.
Number of Facebook Messenger Users in Mexico
According to data published by Meta Ad Resource, ads on Facebook Messenger will reach 57.75 million users in Mexico by the beginning of 2023, with an ad reach equal to 45.1% of the total population that year. 57.0% of the population aged 13 and over. Of these, 54.1% are female and 45.9% are male.
Number of LinkedIn Users in Mexico
LinkedIn's user base in Mexico has reached 19 million, which is expected to grow in the future. As of early 2023, LinkedIn's advertising reach in Mexico is equivalent to 14.8% of the total population, indicating that LinkedIn has become a significant player in the Mexican advertising market.
In addition, 21.0% of the Mexican population is already a LinkedIn user, a figure equivalent to 18.9% of the Internet user base, regardless of age. Of these users, 44.1% are female, and 55.9% are male. Thus, the LinkedIn user base in Mexico presents a more balanced gender ratio, which can provide advertisers with a more comprehensive audience.
In short, LinkedIn has become an integral part of the Mexican market, providing more opportunities for iGaming platforms.
Number of Snapchat Users in Mexico
According to the data published by Snap Advertising Resources, Snapchat reached 16.55 million users in Mexico at the beginning of 2023, a figure that indicates the gradual growth of Snapchat's user base in the country.
In addition, Snapchat's ad reach in Mexico is equivalent to 12.9% of the country's total population, which means that the ads have a very high exposure within the country. In addition, 16.3% of these users are over the age of 13, which is also growing year after year.
In addition, Snapchat has 73.3% of its users in Mexico are female, compared to 25.7% who are male. These figures show that in the Mexican market, Snapchat users are mainly young women, which provides iGaming platforms with more precise marketing strategies and placement targets.
Number of Twitter users in Mexico
The data published in Twitter Advertising Resources shows that Twitter had 17.2 million users in Mexico at the beginning of 2023. Ad reach equaled 13.4% of the total population at the time. 17.0% of users are ages 13 and older. 37.3% of them were female, and 62.7% were male.
Note, however, that Twitter does not currently separate these accounts from "real" human individuals, as Facebook and Instagram do, so there may be some leaps in user data where "non-human" accounts exist. (e.g., accounts representing businesses, animals, musicians, etc.)
From the beginning of 2022 to the beginning of 2023, Twitter's potential advertising reach in Mexico increased by 3.3 million (+23.7%).
Number of Pinterest users in Mexico
Data published in Pinterest Advertising Resources shows that at the beginning of 2023, Pinterest had 19.45 million users in Mexico, equivalent to 15.2% of the total Mexican population. Of these, 19.2% were Internet users over the age of 13, of which 73.8% were female, and 20.5% were male.
From the beginning of 2022 to the beginning of 2023, Pinterest increased its potential advertising reach in Mexico by 1.6 million (+8.9%).
The Current State of iGaming in Mexico
The iGaming market in Mexico is relatively open and growing gradually. The Mexican government has adopted certain regulatory measures for iGaming and allows legal iGaming operators to offer their services in Mexico.
The size of the Mexican iGaming market is estimated to be around US$500 million GGR in 2022, a year-on-year growth of around 10%. The iGaming market is divided into two broad categories: sports betting and offline casinos. Online gaming operators must be licensed by the SEGOB (Ministry of the Interior), while B2B providers do not, and operators must pay a 30% tax rate on GGR revenues.
Mexico's legal framework for iGaming allows for various forms of iGaming activities, including sports betting, horse racing, lotteries, electronic iGaming, and casinos.
TC-GAMING has also collected some news from the internet for all the betting gurus:
1. Mexico banned casinos in 2017, but the ban was lifted the following year.
2. In total, as many as 850 casinos are allowed in Mexico under the new iGaming law, of which 206 have already been built, a number that rises to 370 casinos if stand-alone slot machine halls are also taken into account. Thus, there are still more than 450 casinos to be built.
3. Codere Online Corporation Moshe Edree, CEO of Codere Online. The financial results for the first quarter of 2022 stated that "Net iGaming revenues increased 24% in the first quarter, driven by a strong performance in Mexico and solid results in Spain, where net iGaming revenues were higher than previous levels."
As we can see from the above points, the Mexican iGaming market is a market that continues to grow. The growth of the market can be attributed to a number of factors.
Firstly, the growth and stability of the Mexican economy have provided favorable conditions for the iGaming market.
Secondly, the regulations of the iGaming industry are gradually improving, attracting more investors to the market. In addition, iGaming companies are constantly introducing new products and services to meet the needs of players' expanding internet users.
Therefore, from the above points, it can be seen that the Mexican iGaming market is a market with continuous growth potential, and more development opportunities await new iGaming investors and market players in the future.
Types of gaming games preferred by Mexicans
Local Mexican gaming players have their own preferences and preferences. Mexican and South American-themed video slot games are popular in Mexico, making them one of the most popular types of iGaming games among Mexicans.
Blackjack is also popular and is often featured prominently on iGaming platforms. Roulette is also one of the favorite betting game types for Mexican players.
Taxes from sports betting in Mexico are estimated to exceed US$300 million annually. Mexicans are as passionate about soccer as the rest of the world, and this passion also extends to sports betting. The Mexican Primera Division boasts a large audience and betting and is the most popular soccer tournament in the country.
International leagues such as the English Premier League, Bundesliga, and La Liga also attract betting and viewing in the Mexican market. It is also worth noting that Mexican sports fans have shown unexpected enthusiasm for American soccer, with the NFL hosting annual games in Mexico City and the NCAAF (American college football) enjoying high ratings.
In addition, baseball is also very popular in Mexico, with the local baseball league attracting a lot of attention and betting, and both the Mexican Baseball League and Major League Baseball have a lot of betting activity.
The betting market in Mexico is moving towards diversification, as a wide selection of betting games is what is needed to satisfy Mexican players' love of soccer and other sports when choosing a white label iGaming company.
Challenges of Online Betting in Mexico
The Mexican gaming market faces a number of important challenges while at the same time showing great promise. Here are a few key points:
- Challenging Competitive Advantage: In Mexico, about 60% of players are interested in sports betting, while 40% prefer traditional casino games such as slots, blackjack, poker, and lotteries. Operators need to provide a high-quality experience in both areas to stand out from the competition.
- Evolving experiences: Gaming platforms in Mexico face challenges with competitors offering high-quality digital sports betting and iGaming experiences. These experiences have been widely developed in overseas markets, where players clearly expect a good experience. Operators, therefore, need to continue to innovate and enhance, offering comprehensive solutions and integrating advanced features.
- Importance of marketing: As demand and player numbers increase, iGaming platform operators in Mexico need to invest heavily in marketing. Relying on traditional billboards, radio, or word-of-mouth is no longer enough. Operators need to utilize social media and other digital platforms to increase brand awareness, prove themselves as an authority in the industry, and take full advantage of the Internet digital environment.
- Localized language: the environment of the iGaming platform is a very important aspect. Players from different regions and cultures have different needs and expectations of gaming. Therefore, according to the needs of Mexican players, localized language and game interface are one of the most important aspects to achieve seamless access to the local Mexican market rather than simple translation.
- Localized Visual: Mexico is a multicultural country, so we have to create the most suitable iGaming platform interface according to the visual style, cultural elements, and design habits of Mexico so that players can feel the breath and cultural characteristics of their hometown in the game. Through localization services, we will better meet the needs and expectations of players and bring them a better iGaming experience.
In conclusion, the Mexican iGaming platform market has great potential and development prospects. With the popularization of mobile internet and digital technology, the demand for iGaming in Mexico is increasing.
iGaming platforms will only be able to seize the opportunity and succeed in the competition in the Mexican gaming market by localizing their own platforms to meet the needs of users while providing a high-quality experience and effective marketing.
Online Payment Channels in Mexico
The Mexican gaming market offers a variety of online payment methods to facilitate deposits and withdrawals by players. Here are some of the common online payment methods:
- Credit/Debit Cards: iGaming platforms in Mexico usually accept major credit and debit cards such as Visa, MasterCard, and American Express. Gaming players can use their cards to make payments conveniently.
- E-wallets: iGaming markets in Mexico also support a wide range of e-wallet payment methods, such as PayPal, Skrill, Neteller, and more. Players can deposit funds into an e-wallet account and then use that account to make online payments.
- Bank Transfer: Bank transfer is a traditional payment method, and iGaming platforms in Mexico, allowing players to make deposits and withdrawals. Players can use the online banking system or provide their bank with the relevant information to complete the transfer.
- Prepaid Card/Agent Payments: Some Mexican iGaming platforms accept prepaid cards or agent payments. This includes deposits and withdrawals using prepaid cards, e-vouchers, or payment agents. Examples include Teleingreso, Todito Cash, and Oxxo. These payment methods work similarly: players are given a transaction code at the time of purchase, which can then be used to pay in cash at any authorized store.
Mexico is the untouched gem of iGaming in Latin America. Despite the intricacies of the regulatory framework, Mexico's gaming industry is fully functional and is expected to be a significant global player in the online gaming space due to its rapidly growing technological adaptability and population density.
The gaming market in Mexico is expected to witness tremendous growth. However, it is still in its infancy as compared to Europe and North America. But, establishing an iGaming platform is not easy. Future iGaming platforms are likely to face many challenges, including local regulations, bureaucracy, and technical issues related to platform development.
TC-GAMING is a company that specializes in the white label gambling business and has 16 years of deep experience in the white label industry. The company's business covers China, Cambodia, India, Indonesia, Japan, Mexico, Korea, Malaysia, Myanmar, Thailand, Vietnam, and other countries. TC-GAMING has won the praise and trust of many iGaming platform bigwigs.
In addition, TC-GAMING also provides TC-GAMING Sports White Label service, which offers thousands of sports leagues, over 60,000 events every week, and covers more than 60 sports for players to choose from, such as soccer, basketball, cricket, baseball, and so on. The company focuses on the quality of customer service and has a professional 7/24-hour maintenance team that provides one-on-one personalized service and monitors the system at all times to ensure that the platform operates robustly.
TC-GAMING also widely applies new technologies and concepts, constantly updates and upgrades the platform to enhance security, stability, and operability, and develops new features from an operational perspective while providing various marketing functions that enhance player conversion and viscosity. As a result, many iGaming giants prefer to choose TC-GAMING as the best partner to enter the white label industry.