Mexico Pushes to Update Gambling Laws Ahead of FIFA World Cup 2026

With less than a year before the FIFA World Cup, Mexican regulators and industry leaders are calling for urgent reform of the country’s outdated gambling laws to ensure consumer protection, attract investment, and capture tax revenues from booming betting activity.

Mexico is preparing to modernize its federal gambling framework, as the surge in betting during the 2026 FIFA World Cup is expected to reach record levels. Authorities have urged Congress to replace the Federal Gaming and Lotteries Law of 1947, which still governs the sector but does not address online gaming, mobile apps or digital casinos.

The Association of Permit Holders, Operators and Suppliers (AIEJA) has highlighted that the outdated law leaves players exposed to unregulated offshore sites and deprives the government of valuable tax income. Industry leaders including Aviv Sher of Codere Online and JD Duarte of Betcris warn that without reform, the regulated market risks losing ground to illegal operators.

At the same time, the government is considering a sharp tax increase. The proposed 2026 budget would raise the special tax on gambling (IEPS) from 30% to 50% of gross gaming revenue, applying equally to retail and online betting. This would make Mexico’s gaming tax rate one of the highest in Latin America.

Officials confirm that stakeholder consultations have already been completed and that a draft law is being prepared. Reform proposals include stronger age verification, responsible gambling safeguards, clear licensing rules for online operators, and updated tax structures.

Analysts note that the World Cup is a once-in-a-generation opportunity for Mexico to strengthen its legal framework. Without reform, billions in potential revenue could be lost to the black market, while a modern law could secure growth, investor confidence and player protection at a critical moment for the industry.