Mexico Inches Closer to Raising Gambling Tax from 30% to 50%
Summary
Mexico’s Senate Committee on Legislative Studies has approved the 2026 Miscellaneous Fiscal Package, which contains a proposed jump in taxes on betting and online casino activity from 30% to 50%. The move is part of President Claudia Sheinbaum’s 2026 economic plan and follows a prior approval by the Chamber of Deputies. If the Senate passes the measure without amendments by the plenary vote ahead of the 31 October deadline, the law would be published in the Official Gazette of the Federation and come into force on 1 January 2026.
The package also proposes an 8% Special Tax on Production and Services (IEPS) for video games with violent content, bringing them into the same taxed category as tobacco, alcohol and gambling. Lawmakers say additional revenue will be directed to public health, hospitals and preventive education, and that the increases aim to discourage socially harmful behaviour while reducing the budget deficit, projected at 4.1% of GDP.
Key Points
- Senate committee approved the 2026 fiscal package, which includes raising gambling taxes from 30% to 50%.
- The Chamber of Deputies has already approved the proposal; a Senate plenary vote is required by 31 October.
- If passed unchanged, the law would be published in the Official Gazette and effective from 1 January 2026.
- An 8% IEPS special tax would be applied to video games with violent content, a newly targeted category.
- Authorities plan to allocate part of the extra revenue to public health, hospitals and preventive education and to curb socially harmful behaviour.
- Officials say the hike also seeks to fully regulate online betting and ensure foreign operators contribute to Mexico’s tax base.
- The measure is pitched as aligning gambling taxation with other harmful products and intended to help narrow a 4.1% of GDP budget deficit.
Context and relevance
This proposal follows broader international trends where governments raise or tighten taxes on gambling and other products perceived as socially harmful. For operators, a rise from 30% to 50% would be material to margins and licence economics, and could prompt changes in market behaviour, pricing, or withdrawal of some foreign operators. For regulators and public-policy watchers, the inclusion of violent video games under IEPS signals a widening of fiscal tools aimed at social policy objectives.
Stakeholders likely to be affected include domestic and international online casino operators, gaming platforms, payment processors and investors with exposure to the Mexican market. Legal and compliance teams should monitor the Senate plenary timetable closely; businesses will need to model fiscal impacts and consider operational, pricing and regulatory responses if the law is enacted.
Why should I read this
Quick version: this could seriously reshape the economics of gambling in Mexico overnight. If you work in iGaming, payments, regulation or invest in the space, you need to know whether your Mexican business will face a near-doubling of tax pressure and how the state plans to spend the extra cash. It’s short, it’s sharp and it matters — especially if you have users, partners or revenue in Mexico.