Mexico’s Senate approves increase of taxes on online gambling from 30% to 50%
Summary
The Mexican Senate has approved a fiscal reform raising the Special Tax on Production and Services (IEPS) on online gambling from 30% to 50% for 2026. The measure, already passed by the Lower House two weeks earlier, is part of a broader fiscal package intended to increase transparency and curb money laundering.
The bill passed the Senate with strong majorities (IEPS: 75-37 in general and 76-34 in particular) and has been referred to the Executive. The Ministry of Finance projects total collections of MXN 761.5 billion (over USD 40 billion) in 2026, with part of the revenue earmarked for health programmes. Other sectors hit by the reform include tobacco, flavoured beverages, violent video games and a range of public services.
Key Points
- Online gambling tax under the IEPS is being raised from 30% to 50% for 2026.
- The Senate approved the reform decisively: 75 votes in favour and 37 against in the general vote; 76 in favour and 34 against in the particular vote.
- The Finance Ministry expects MXN 761.5 billion in collections in 2026 (over USD 40bn), a c.10% rise on 2025 estimates; some proceeds will fund health programmes.
- Officials justify the hike as a tool to fight money laundering and force greater income transparency among operators.
- Industry experts warn the tax could backfire: the Tax Administration Service (SAT) might lose MXN 12 billion (around USD 650m) if licensed operators exit the market or customers migrate to illegal platforms.
- Analysts estimate around 60% of online betting available to Mexican players is currently illegal; higher taxes risk expanding the black market and undermining licensed businesses’ models.
- Other impacted items in the fiscal package include taxes or fees on tobacco, flavoured drinks, violent video games and certain administrative services (immigration procedures, phytosanitary certificates, radioelectric spectrum use).
Why should I read this?
Short and blunt: if you work in iGaming, payments, compliance or run a sportsbook in Mexico (or plan to enter), this changes the economics overnight. It’s a big margin hit, likely to push some players and operators towards the illegal market, and could reshape market strategy and licensing decisions. We skimmed the Senate vote and the numbers so you don’t have to — but don’t ignore this one.
