The Mexican Senate's Legislative Studies Committee has approved the "Economic Package 2026" (Paquete Económico 2026), with the most notable content being:
The special production and service tax (IEPS) on gambling and online casino operations is raised from 30% to 50%, and an additional 8% tax rate is introduced for video games containing violent content.
This plan is a key component of President Claudia Sheinbaum's economic agenda for 2026.
If the full Senate passes it without amendments by October 31, the law will be published in the "Official Gazette of the Federation" (DOF) and will officially take effect on January 1, 2026.
➡️ Legislative process: Entering the final stage
House of Representatives: Passed this financial plan earlier this month.
Senate Committee: Approved on October 29 and submitted for full Senate review.
Deadline: To be completed by October 31.
Implementation date: If unamended, it will take effect on January 1, 2026.
This means that Mexico is just one step away from officially implementing a high tax rate gambling policy.
➡️ Major impact on the gambling industry
😃 The tax burden doubles, significantly compressing profit margins
Raising the IEPS tax rate from 30% to 50% is almost equivalent to "halving profits" for gambling operators.
Especially if taxed on turnover rather than net gambling revenue (GGR), many small and medium operators will struggle to cope.
Large brands may offset some of the impact through scale effects and product mix, but overall profit margins are expected to decline significantly.
😄 Online gambling regulation becomes stricter, foreign capital pressure increases
The proposal also requires digital gambling platforms to register in Mexico and assume tax obligations.
The tax authority (SAT) will gain real-time access to platform data in the future to ensure transparency and tax compliance.
For international online gambling companies currently operating in Mexico (such as Bet365, Codere, Caliente, etc.), this means more complex compliance procedures and higher cost thresholds.
😁 The market structure may experience a "reshuffle effect"
Under the dual pressure of high taxes and strict regulation, some small or gray operators may choose to exit the market.
This will provide more living space for companies with local licenses and strong capital.
In the short term, there may be a phase of "market contraction + profit decline + user loss".
😆 Player experience is squeezed
The rise in tax rates will inevitably be passed on to the user end. Operators may reduce bonuses, lower cashbacks, raise betting thresholds, or reduce promotional activities.
This will affect the overall market activity and increase the risk of some users moving to overseas or unlicensed platforms.
➡️ Industry outlook: Stricter regulation, profit cycle restructuring
Overall, this tax reform in Mexico represents a shift in regulatory attitudes in Latin America:
From "encouraging growth" to "strengthening control and taxation".
Mexico was originally seen as one of the most promising gambling markets in Latin America, especially in the rapidly growing online sports betting sector.
However, with the doubling of tax rates and rising regulatory costs, market expansion is expected to slow significantly.
For operators, this will force an industry restructuring:
More reliance on localized operations and brand cooperation;
Shift towards more controllable high-profit game categories (such as virtual sports, RNG games);
Greater emphasis on compliance teams and tax planning capabilities.
Some analysis institutions believe that some international brands may reduce their investments in Mexico and instead focus on markets with lower tax burdens such as Colombia and Peru.
————
This is the only gambling industry knowledge channel on TG, targeting gambling industry executives. Produced by "Global iGaming Leader - PASA". Deep content on the past, present, and future of the gambling industry is published daily.
This content is exclusively created by https://t.me/gamblingdeep, if you like our content, feel free to share it.
Free data report: @pasa_research
Join the member group: @pasa002_bot
PASA official website: www.pasa.news
