Mexico’s Senate To Debate IEPS Tax Increase On Online Gaming
Mexico.- October 28, 2025 – www.zonadeazar.com Mexico’s Senate will debate raising the IEPS tax on online gaming and sports betting from 30 % to 50 %, as part of the 2026 economic package aimed at strengthening fiscal revenues and public health programs.
Overview
Senate President Laura Itzel Castillo Juárez confirmed that lawmakers will discuss an amendment to the Special Tax on Production and Services (IEPS) applied to digital betting platforms.
The proposal seeks to align the online gaming tax rate with other high-risk sectors, while ensuring greater funding for healthcare and responsible gambling initiatives.
Details / Context
The online gaming market in Mexico has grown exponentially, reaching over USD 2 billion annually.
Authorities argue that the current 30 % tax rate no longer reflects the scale of the sector, and that increasing it to 50 % would bring fiscal “fairness” across industries.
Industry representatives, however, warn that the hike could drive users toward unregulated offshore sites, undermining the progress made under the 2023 gambling reform.
The initiative also introduces enforcement powers for tax authorities to block non-compliant international operators.
Future Outlook
If approved, the reform would take effect on January 1, 2026.
Analysts believe it could reshape the Latin American regulatory landscape, setting a new precedent in fiscal policy for digital betting.
The outcome will test Mexico’s ability to combine effective taxation, investor confidence, and responsible gaming policies.
Key Subtopics
- Economic: Potential impact on margins and market stability.
- Regulatory: Enhanced oversight of unlicensed operators.
- Social: Tax revenue directed to health and education.
- Technological: Increased digital traceability requirements.
- Institutional: Collaboration among Finance, SEGOB, and Senate.
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