The Mexican Senate has approved the 2026 fiscal package, which includes a historic 50% increase in the tax applied to online betting platforms in Mexico. With 75 votes in favour and 37 against, the reform of the IEPS sets a precedent in the country’s fiscal policy. It redefines the legal framework regulating the sector.
Tax reform signals shift in gambling policy
For the very first time, the IEPS Law places online betting platforms on equal fiscal footing with land-based venues. As reported by Proceso, the bill was pushed through in a lengthy session, with government allies championing ancillary changes to both the Federal Fiscal Code and the Federal Fee Law.
These reforms were subsequently sent to the head of the federal executive for immediate enactment. Consequently, the new taxes will take effect on 1 January 2026. Although the measure was presented as an effort to strengthen tax collection, the private sector perceives it as a turning point in the economic strategy towards online gambling.
Transparency and oversight of fiscal platforms
One of the most notable changes comes in the Federal Fiscal Code, which obliges online platforms to allow permanent, real-time access to information on their operations. Therefore, the Tax Administration Service (SAT) will be able to monitor transactions, invoicing, and financial movements without prior judicial authorisation.
Proceso magazine reports that, according to Senator Rolando Zapata Bello, the scope of these measures could directly impact business activities, as they grant SAT immediate enforcement powers. Nonetheless, the government defends the initiative as a tool to combat tax evasion and money laundering, in line with transparency policies promoted in other jurisdictions around the world.
Mexico’s new IEPS tax raises revenue amid opposition concerns
The Special Tax on Production and Services (IEPS) in Mexico has been modified to increase taxes on tobacco, sugar-filled beverages, “violent video games”, and gambling. The government hopes to improve tax collection beginning in 2026. This move is scheduled to go into force with the Revenue Law that is presently being discussed in the Senate.
While official statements claim the objective is to deter harmful consumption and promote public health, opposition senators like Karla Guadalupe Toledo argue the true aim is revenue generation. “This government is simply trying to safeguard its coffers,” she said during the session. Additionally, critics caution that because these taxes are indirect, people with less money would be disproportionately affected by the hikes, as Proceso states.
Divergent reactions in the legislative sector
The Senate debate revealed a clear division. While 76 legislators supported the reform of the Federal Law of Fees, 38 voted against the new Fiscal Code, and 76 legislators approved the IEPS update, with 34 opposing votes, according to the Official Gazette.
Opposition representatives also questioned the speed with which the package was voted on, citing a lack of a comprehensive assessment of economic impact.
Economic and fiscal implications for gambling in Mexico in 2026
If official projections hold, Mexico expects to recover over 761.5 billion pesos during the next fiscal year. This figure represents an approximate 10% increase compared to 2025, mainly driven by higher IEPS revenues. Additionally, funds will be derived from both land-based activities and online platforms newly incorporated into the fiscal framework.
The government intends to allocate part of the revenue to public health programmes and social policies. However, debate over the effectiveness of the measures remains open. Meanwhile, Mexico’s gambling market enters a new phase characterised by greater state control and cautious expectations regarding the impact on sector competitiveness.
This article is quoted from: Sigma <Are operators ready? Mexico approves steep increase in online betting> original link: https://sigma.world/news/mexico-online-betting-tax-increase-2026/