Mexico targets higher gambling taxes in 2026 fiscal plan

• Finance Ministry proposes lifting IEPS on games of chance as part of the 2026 Economic Package, alongside “health taxes” on tobacco, sugary drinks, and a new levy on violent video games
• Reports indicate a significantly higher burden on wagers for both land-based and online betting, with some summaries citing ranges moving toward 30–50 percent on amounts wagered
• The government frames the move as revenue‑raising and social policy, with strengthened oversight of online activity and efforts to bring offshore platforms into the tax net

Mexico’s Finance Ministry has proposed increasing the Special Tax on Production and Services (IEPS) applied to gambling as part of the 2026 Economic Package, aligning the measure with broader “health tax” adjustments on tobacco, sugary drinks, and video games.

The proposal is included in the budget materials delivered to Congress this week and forms part of a wider plan to raise tax intake and tighten oversight across digital markets.

Several outlets report that the IEPS burden on betting would rise materially, with suggested ranges moving from current levels toward 30–50 percent of amounts wagered or effectively received, covering both physical casinos and online betting platforms. While details await debate, the scope indicates a substantial change in the tax take from gaming activity.

Officials position the changes as health‑motivated and fiscally prudent, mirroring the strategy used for sugary drinks and tobacco, while introducing an 8% tax on violent video games. Budget coverage highlights the administration’s expectation of higher revenue through increased IEPS collections, improved compliance, and the formalisation of digital services subject to Mexican tax law.

Industry and policy trackers also point to a parallel push to modernise Mexico’s gambling framework, replacing the decades‑old law and strengthening tools to ensure taxes are paid in line with income. This includes oversight of online betting and measures to capture activity from offshore operators serving the Mexican market.

Next steps will unfold in Congress as legislators examine the 2026 package, where final IEPS rates, tax bases, and enforcement mechanics will be set. Observers expect discussion on calibrating the measures within the administration’s broader effort to lift revenue to a projected 15.1 percent of GDP and narrow the fiscal deficit.