Mexico’s Senate Approves 50% Tax Rate on Online Gambling Despite Industry Backlash

The Senate of Mexico has given the green light to the 2026 fiscal reform package, notably increasing the Special Tax on Production and Services (IEPS) applied to online betting and gaming operators from 30% to 50%. The move has triggered stern opposition from industry bodies including the Asociación de Permisionarios, Operadores y Proveedores de la Industria del Entretenimiento y Juego de Apuesta (AIEJA).

The reform was approved with 75 votes in favour and 35 against during consideration of the IEPS amendments in the Senate, following earlier approval by the Lower House. Under the measure, tax on gross gaming revenue (GGR) for online betting, lotteries and digital casino operators will jump to 50% from 30% starting 1 January 2026.

According to the Ministry of Finance, the fiscal package is expected to help raise additional revenues and support public-health initiatives and preventive programmes. However, AIEJA raised serious concerns:

• It warned the higher tax rate risks making licensed operators’ business models unviable, possibly driving licensed firms out of the market.
  
  
• The Association also argued the measure could shift players toward unlicensed, untaxed platforms — undermining both consumer protection and formal tax collection.
  
  
• AIEJA pointed to estimates that around 60% of Mexico’s online gambling activity currently takes place in the illegal market — a situation that may worsen under the new tax regime.
  
  

Industry analysts echo the warning: with one of the highest gaming tax burdens globally, Mexico’s regulated sector may struggle to attract investment or sustain growth. The tax hike arrives as operators already face multiple layers of fiscal obligation including corporate income tax, local levies and sector fees.

The upcoming period will test the balance between fiscal objectives and market sustainability. The regulatory calendar now turns to the President for final enactment and subsequent implementation of the law.