Legal Guide 2026: Taxes and Regulation of Online Casinos in Mexico and Chile

This guide covers the current rules for Mexican and Chilean players, the taxes that apply to betting winnings, how to verify that a casino operates with a real license, and the concrete steps you can take when an operator doesn't comply.

Is it legal to play at foreign casinos from Mexico in 2026?

The short answer is that there is no direct prohibition for the Mexican player who accesses online casino platforms from their device. The Federal Law on Games and Sweepstakes of 1947, administered by the Secretariat of the Interior (SEGOB), regulates the operation of games and bets within the national territory, but it was drafted decades before the internet existed. The law does not explicitly address the user who plays on foreign sites from Mexico.

What is regulated is the commercial operation. To offer betting services to users within Mexican territory, an operator needs authorization from the General Directorate of Games and Sweepstakes, which falls under SEGOB. Only legal entities incorporated in Mexico can obtain this permit. Foreign casinos that accept Mexican players without this authorization operate outside the Mexican legal framework, which means the player has no local regulatory protection if something goes wrong.

In 2026, the Mexican government is tightening its stance against unregistered digital operators. The 2026 Economic Package formally extended the scope of IEPS to online providers and non-residents offering digital betting services to users in Mexico. The SAT (Tax Administration Service) gained powers to access operational data in real time and can order the temporary blocking of sites that fail to comply with tax obligations.

What does this mean for the player?

If you play at a casino with a SEGOB license, you operate within the Mexican legal framework. Your operator withholds taxes, reports to the SAT, and is subject to regulatory supervision. If you play at a foreign site without Mexican authorization, you are not committing a crime as a player, but you lose any local legal recourse. You cannot file a complaint with the General Directorate of Games and Sweepstakes against a casino that doesn't have a permit in Mexico. And if that casino decides not to pay, your options are reduced to international mediation or a chargeback with your bank.

The regulatory trend in Mexico is heading toward greater control. The government is working on a modernization of the gaming law that would seek to expressly regulate online gaming, define specific licensing requirements for digital platforms, and strengthen enforcement mechanisms. Until that law is approved, the current framework remains the Federal Law on Games and Sweepstakes of 1947 supplemented by its 2004 regulation and the new fiscal provisions of 2026.

Casinos with legal presence in Mexico

The operators that hold SEGOB permits include well-established local brands like Caliente, which dominates online betting traffic in Mexico by a wide margin, plus international operators that have obtained authorization through Mexican entities, such as Codere Online and bet365. These sites operate under the supervision of the General Directorate of Games and Sweepstakes and are required to comply with player identity verification rules, anti-money laundering requirements, and tax withholding.

New gambling laws in Chile: What the player must declare

Chile finds itself in a different legal situation from Mexico. There is no law that expressly authorizes online gambling in the country. Law 19,995 regulates land-based casinos, allowing only 24 licensed physical casinos and casinos on cruise ships. But online gambling falls into a regulatory vacuum: it is neither expressly permitted nor expressly prohibited for the user.

That doesn't mean there are no tax consequences. Chile's Internal Revenue Service (SII) has been clear and consistent in stating that winnings obtained from online bets are taxable income and must be declared in the annual Tax Return.

How betting winnings are taxed in Chile

According to the SII, cash prizes obtained at casinos, both domestic and international, are considered income subject to the First Category Tax and to the Global Complementary or Additional Taxes, as applicable. In practical terms, if you won money betting online during 2025, you must declare those winnings in the 2026 Tax Return using Form 22.

The tax treatment works like this: betting winnings are classified as sporadic income. They are added to your annual tax base and taxed according to the progressive table of the Global Complementary Tax, which in 2026 ranges from rates of 0% for low income up to a maximum of 40% for the highest brackets. There is no flat rate exclusive to gambling winnings. The tax you pay depends on how much you earned in total during the year, including all your sources of income.

What happens if you don't declare

The SII has access to banking information and can detect money flows that don't match your declared income. If you received transfers from betting platforms and didn't include them in your declaration, you expose yourself to fines, surcharges, and interest. The SII has published specific warnings directed at online betting users, stating that every person who has an increase in wealth in a given year must declare that income.

The online betting bill

Chile has been trying to regulate online betting for years. Bill 14,838-03, introduced in March 2022, seeks to regulate the development of online betting platforms. In August 2025, the Senate approved the bill in a general vote with 27 votes in favor and 3 against, advancing it to its second constitutional stage. As of April 2026, the bill continues in process in the Chamber of Deputies.

The bill contemplates concrete measures. Operators would need a license from the Superintendency of Gaming Casinos (SCJ). A 20% tax on gross gaming revenue (GGR) for licensed operators is proposed, in addition to VAT. Operators would also need to contribute an additional 1% earmarked for responsible gambling programs. Site-blocking mechanisms for unlicensed sites and explicit player protections are included.

Until the law is approved, the Chilean player's situation remains ambiguous on the regulatory side but clear on the fiscal side: if you win, you must declare. If you don't declare, the SII can act.

Tax comparison Mexico vs Chile for the player

How to identify a casino licensed by SEGOB or trustworthy international bodies

Verifying an online casino's license is not complicated, but it requires knowing where to look. A site can put a SEGOB logo on its page and not have a real permit. What matters is direct verification with the regulatory source.

SEGOB license verification

The General Directorate of Games and Sweepstakes, under SEGOB, issues the authorizations to operate games and bets in Mexico. Permits are granted exclusively to Mexican legal entities, which means any operator with a valid authorization must be legally incorporated in Mexico.

To verify if a casino has a permit, you can consult directly with the General Directorate of Games and Sweepstakes through its portal on gob.mx. Authorized operators must display their permit number on their website. If a casino doesn't show that information or gives you a number that can't be verified, it's a serious red flag.

SEGOB also publishes news about closures of unlicensed establishments and has the authority to sanction any form of illegal gambling in Mexico, regardless of whether the operator holds a license in another jurisdiction.

Trustworthy international licenses

Many online casinos that accept Latin American players operate with licenses issued outside the region. Not all of those licenses offer the same level of player protection. Some jurisdictions have rigorous oversight with regular audits, fund segregation requirements, and dispute resolution mechanisms. Others issue licenses with minimal oversight.

The international jurisdictions with the greatest reputation in the industry include the Malta Gaming Authority (MGA), which requires periodic financial audits, player fund segregation, and responsible gambling compliance. The UK Gambling Commission is considered one of the strictest in the world, although its focus is the British market. The Curacao license (formerly under the e-Gaming Authority and now under the Curacao Gaming Control Board following the 2023 reform) is the most common among casinos accepting Latin American players, but historically has offered more limited supervision.

Red flags at unlicensed casinos

There are markers a player can check before depositing money. First, look for the license number in the site's footer. If there isn't one, don't deposit. Second, verify that number directly on the regulator's website. Third, check whether the casino has fair gaming certification from independent laboratories such as eCOGRA, iTech Labs, or GLI. Fourth, look for seals from responsible gambling organizations.

Also pay attention to payment methods. Casinos with real licenses process payments through established banking providers. If a site only accepts cryptocurrencies or transfers to personal accounts, it's a clear sign that it's not regulated.

Quick verification checklist

Consumer protection: What to do in case of disputes?

When a casino doesn't pay a withdrawal, applies retroactive terms, or closes an account without justification, the player needs to know where to turn. The process depends on where the casino is licensed and the jurisdiction where the player is located.

Disputes with casinos licensed in Mexico

If the casino holds a SEGOB permit, you can file a complaint directly with the General Directorate of Games and Sweepstakes. The procedure requires a free-form written statement in duplicate and a copy of your current official identification, submitted at the General Directorate's Filing Office. This office has the authority to investigate, mediate, and sanction the operator if it finds irregularities.

If the problem involves a financial service linked to the bet (for example, an unrecognized charge on your card or a failed transfer), you can turn to CONDUSEF (National Commission for the Protection and Defense of Financial Services Users). CONDUSEF offers an electronic complaint portal where you can start the process without needing to physically visit an office.

There is also the bank chargeback route. If you deposited with a debit card and the casino doesn't comply, you can dispute the charge with your bank. Visa grants a period of up to 120 days to initiate the dispute. In Mexico, the timelines may vary depending on the financial institution, but Visa's standard process applies.

Disputes with foreign casinos (without SEGOB license)

Here the options are reduced. Without a local license, the General Directorate of Games and Sweepstakes has no jurisdiction over the operator. Your main alternatives are three.

First, mediation through independent dispute resolution services. Platforms like eCOGRA, Casino Guru, and AskGamblers offer free mediation services between players and casinos. eCOGRA is an entity approved as an alternative dispute resolution (ADR) service by the UK Gambling Commission. If the casino holds an MGA or UKGC license, these services carry more weight because the regulators require operators to participate in good faith in mediation processes.

Second, complaint to the foreign regulator. If the casino holds a Malta license, you can file a complaint with the MGA through its online portal. If it holds a Curacao license, you can contact the Curacao Gaming Control Board. The effectiveness of the complaint depends on the regulator; the MGA usually responds and acts, while Curacao has historically been less responsive, although its 2023 regulatory reform sought to improve this.

Third, bank chargeback. If you paid with a card or bank transfer, contact your bank and dispute the transaction. Present all available evidence: screenshots, emails with casino support, betting records, and any communication where the casino acknowledges the debt.

Disputes for players in Chile

In Chile, the situation is more limited because there is no online gaming regulator. The Superintendency of Gaming Casinos supervises the 24 licensed land-based casinos but has no jurisdiction over online platforms.

The Chilean player who has a problem with a foreign online casino basically has the same three avenues that apply to any international user: independent mediation, complaint to the regulator of the jurisdiction where the casino is licensed, and bank chargeback.

An additional alternative in Chile is SERNAC (National Consumer Service), which can receive complaints related to digital services. However, its effectiveness against foreign online gambling operators is limited, as it has no authority over companies not incorporated in Chile.

Immediate steps when a casino doesn't pay

Before escalating to regulatory bodies, follow these steps. First, contact the casino's support in writing (live chat and email) and request a formal explanation of the reason for the rejection or delay. Save screenshots of the entire conversation. Second, review the bonus or promotion terms and conditions if the casino claims you violated wagering rules. Third, verify that you have completed the identity verification process (KYC), as many delays are due to pending documentation. Fourth, if after 7 to 14 business days you don't receive a satisfactory response, proceed with independent mediation and, if applicable, with the bank chargeback.

What Every Player Should Keep in Mind

Online casino regulation in Mexico and Chile is in motion. Mexico has a legal framework that, although old, gives the player a basis of protection when playing at operators with SEGOB permits. Chile still doesn't have an online gaming law, but the SII makes it clear that betting winnings are taxable. In both countries, playing at casinos with verifiable licenses significantly reduces the risk of fraud, payment problems, and lack of legal recourse.

The 50% IEPS in Mexico is a change that directly affects the operator, but has an indirect impact on the player: operators may adjust odds, reduce bonuses, and restrict promotions to offset the tax burden. In Chile, the approval of the online betting law would change the rules of the game entirely, but until that happens, tax responsibility falls entirely on the player.

Verify the license before depositing. Declare your winnings. And if a casino doesn't comply, document everything and act quickly.