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Mexico proposes sharp gambling tax rise
Mexico’s finance minister, Édgar Amador, has introduced a proposal to sharply increase taxes on casinos and online betting in the 2026 Economic Package.
Under the proposal, the Special Tax on Production and Services (IEPS), currently set at 30% of gross gaming revenue, would jump to 50%. The IEPS is an extra levy the government already uses on goods like cigarettes, sugary drinks, and fuel, in addition to regular VAT.
If approved, the higher rate would hit both land-based casinos and online platforms, including those run by foreign operators without a tax base in Mexico.
The proposed gambling tax increase is part of a wider set of “healthy taxes” aimed at reducing the use of products tied to health and social risks. In addition to tobacco and sugary drinks, the 2026 plan introduces an 8% IEPS tax on video games containing violent, extreme, or adult content deemed unsuitable for players under 18.
This new levy would cover both physical and digital sales, including subscriptions, downloads, and even in-game purchases such as characters, levels, or added features.
Mexico is counting on the new taxes to help narrow its budget gap. The Finance Ministry expects total revenue of MX$8.7 trillion in 2026, with MX$5.8 trillion coming from taxes. The fiscal deficit is projected at 4.1% of GDP, and public debt is set to rise to 52.3% of GDP.
The Chamber of Deputies has until 20 October to debate and approve the budget. The Senate will then review the Revenue Law by 31 October, while the Expenditure Budget must be settled by 15 November. Once passed, the final budget will be published in the Official Gazette within 20 days.
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