The Mexican government has unveiled plans to significantly raise taxes on gambling as part of its 2026 economic package.
The proposal, presented by Finance Minister Edgar Amador to the Chamber of Deputies, includes a steep increase in the Special Tax on Production and Services (IEPS) for gambling — jumping from the current 30% on gross gaming revenue (GGR) to 50%.
In addition to gambling, the package also targets other so-called “health taxes,” including higher levies on tobacco, sugary drinks, and the introduction of an 8% tax on video games containing violent content.
The draft does not yet specify the calculation base for the increased gambling tax, leaving operators and analysts awaiting further clarification. According to the government, the measures aim to boost fiscal revenues and help achieve its projected income of $527 billion, alongside an anticipated GDP growth rate of 1.8% to 2.8% in 2026.
The legislative timeline is tight. The Chamber of Deputies must approve the budget by October 20, while the Senate is scheduled to review the tax legislation by October 31. If passed, the reform would make Mexico one of the highest-taxed gambling jurisdictions in Latin America, potentially reshaping the country’s gaming landscape and affecting both domestic and international operators.
