The Mexican gaming industry is at a critical turning point.

The Mexican Government is facing a common voice among domestic stakeholders and foreign investors: the outdated system of lottery regulation must be overhauled before the 2026 World Cup, which determines success or failure. The claim came from Aviv Sher, Chief Executive Officer of Codere Online, who shared at the SBC Summit in Lisbon the “local experience” of the brand since it entered the Mexican online lottery market in 2014.

As an early pioneer of the Mexican market, Cordere Online has been subject to a permit system based on the Federal Act of 1947 on Game Lottery. This set of deficiencies in the regulatory framework, which has been in place for 78 years, is particularly evident since the promulgation of the non-fiscal tax policy package, when Mexican President Claudia Simbaum proposed in the fiscal budget earlier this month to raise the lottery rate from 30 per cent to 50 per cent, a “crime tax” designed to fill the fiscal gap of 41 billion pesos (about $2.5 billion). High tax rates, which allowed the gaming industry to fight back.The Mexican Association of Lottery License Holders and Vendor Industries, AIEJA, launched a national campaign to reposition the economic contribution of the lottery industry, not only in relation to entertainment, but also in relation to science and technology, IT services and tourism. Avif Sher expressed “the hope that the President will listen”. Aviv Shell revealed to SBC Noticias that the Mexican market now accounts for half of Codere Online ‘ s net lottery income, increasing monthly active users from 50,000 in 2023 to 85,000 in the latest report. “This growth is impossible in mature markets”, he analyses, “the Mexican market is structurally mature, but there is still considerable scope for expansion”.

Cordeline’s latest financial report shows both potential and vulnerability: in the second quarter of 2025, Cordere Online achieved a net income of Euro55 million, a 23 per cent increase in local currency income and a 36 per cent increase in active users, but these gains were partially covered by the 19 per cent depreciation of the peso against the euro. Aviv Sher points to the fragility of the Mexican system as a reflection of extreme fluctuations: “The performance of the volatile impact of exchange rates in euro terms is strong in local currency. We can control marketing and customer services, but we cannot control the peso. Exchange rate fluctuations, unpredictability of taxes and the absence of modern legislation are all relevant to the laws of the 1940s and exacerbate business risks. However, the greatest threat in Mexico is that about 60 per cent of the market remains unregulated, losing taxes and exposing consumers to unregulated operators.The demands of the industry for policymakers are quite clear: acceptance rather than punishment.“The Mexican gaming law, dating back to 1947, is simply not adapted to the realities of today’s online gaming”. In his view, the industry should be regarded as an “economic interest” rather than as a wool that would facilitate fiscal scavenging. The gaming industry sustains technical employment, supports software and digital services, and promotes tourism through sports and entertainment. Prejudice may hinder the development of this already resilient industry.

“We understand the political will of the Government to promote the new federal lottery law,” Avev Sher said, “if implemented, it would help to level the playing field and reduce the still too large unregulated market”. The response of Cordere Online is to cultivate Mexican society, especially through football cooperation. The company is not only the main sponsor of the Monterey Football Club, but has recently extended its cooperation to its female team, Rayadas. “Mexican women’s football is developing so fast that we see the great potential of this audience,” Shell explained, “Participating with clubs means supporting all aspects of their work, which helps us reach new people and demonstrate long-term commitment.”

Enterprises also take advantage of the activities of the international association with the Royal Madrid to enable clients to experience or meet in the arena of the legend field. These marketing investments both create brand recognition in crowded markets and, more subtle, convey reliability in image-ridden industries. Aviv Sher is convinced that “when sponsorship is combined with a unique experience of creating loyalty, it can produce extraordinary results”. As Mexico approaches the 2026 World Cup, co-sponsored by the United States of America and the United States of America, and the urgency of reform grows, this international sporting event will expose all the strengths and weaknesses of the Mexican system to the global spotlight. As AIEJA warns, the World Cup should not be seen as just another foreign benchmark for economic progress, but rather as a modern platform for improving sports infrastructure and combating black trade. If the gaming industry continues to be dominated by unlicensed operators or suffers from sudden fiscal shocks, it will undermine the credibility of a small Mexican industry that can attract foreign investment for sustained consumption.

Codere Online, who had struggled earlier, insisted that he was ready for the challenge. “We have shown resilience in the past, “Aviv Shears thought, “but long-term growth requires long-term certainty. What we cannot bear indefinitely is the uncertainty of the rules of the game. Stability is as important as growth for Mexico to realize its global online market potential.”