Finance Minister Édgar Amador has proposed a major tax increase on gambling as part of Mexico’s 2026 Economic Package. The plan nearly doubles the current rate, raising taxes on casinos and online betting from 30% to 50% of gross gaming revenue. Both local and foreign operators without Mexican tax residence would be affected, making this one of the region’s toughest fiscal regimes. Industry groups are already strategizing their response.
Why Mexico Wants Higher Gambling Taxes
The government describes these as “healthy taxes,” similar to those applied to tobacco and sugary drinks, aimed at discouraging risky behaviors. Economic pressures are also driving the move. Mexico faces a fiscal deficit of 4.1% of GDP and public debt projected to rise to 52.3%. With revenue goals of MX$8.7tn in 2026, the government is prioritizing gambling reform as a way to boost collections.
What the New Tax Plan Includes
- IEPS reform to raise gambling tax from 30% to 50% of GGR.
- New 8% levy on violent video games (including in-game purchases).
- Applies to both land-based and online operators, including foreign platforms.
- Chamber of Deputies deadline: October 20; Senate review: October 31.
How This Changes Industry Economics
Operators already shoulder multiple taxes: 30% corporate income tax, 30% IEPS on GGR, 6% sales tax, plus additional local levies on consumption and prizes. While up to 20% of IEPS liability can be offset with local tax deductions, the overall burden is already severe. The proposed hike could stifle industry growth, particularly as online revenues are expected to surpass land-based operations by late 2025.
Regulation still relies on a 1947 law, leaving modernization lagging. With digital transformation underway and added pressure from U.S. trade policy shifts, operators face major uncertainty. The proposed tax hike represents a critical moment for Mexico’s gambling industry, testing both its resilience and its ability to adapt to new fiscal realities.
