AIEJA criticizes 50% IEPS hike in Mexico and warns of consequences
The approval in the Senate of the Republic of Mexico of the reform to the Special Tax on Production and Services (IEPS) on games and lotteries generated a strong reaction among sector stakeholders.
The AIEJA —which groups the main operators and providers of the entertainment industry with betting— expressed its “deep disappointment” at the increase of the tax from 30% to 50%, included in the 2026 Economic Package, considering that the measure puts the stability and competitiveness of the formal sector at risk.
In an official statement, the association described the decision as “harmful to the functioning of the industry,” pointing out that the tax increase will significantly raise operating costs and will affect small and medium-sized companies more, which have less financial margin.
“The result will be reduced investment, job losses, and capital flight,” warned the organization.
AIEJA recalled that the Mexican gaming industry operates under outdated legislation, the Federal Law on Games and Lotteries of 1947, and has repeatedly requested a modernization of the legal and fiscal framework that encourages formality and attracts new investments.
“If our authorities understood that a higher tax burden corresponds to lower revenue, more taxes and more formal employment could be generated,” the association stated.
The entity also rejected the federal government’s argument justifying the IEPS increase as a “healthy tax.” In its view, the measure could encourage players to migrate to illegal platforms, which would reduce revenue and weaken the State’s control over the activity.
“Instead of promoting a responsible and regulated environment, the tax increase could push users toward the illegal market, outside the supervision of political and fiscal authorities,” it emphasized.
Likewise, AIEJA reiterated its call to the government to strengthen actions against illegal gambling, which “thrives in cyberspace” and represents unfair competition for operators with valid permits.
Finally, the association requested opening a dialogue space with authorities and legislators before adopting decisions that could be counterproductive for the country and for a sector that provides thousands of direct and indirect jobs, formal investment, and fiscal resources destined for social programs.
The reform was approved at the end of October with a pro-government majority and sent to the Executive for promulgation.
From the federal government, the measure was defended as a tool to strengthen public revenue and promote health objectives, aligned with the fiscal policy taxing activities considered socially risky, such as tobacco or alcohol.
With the IEPS increase to 50%, Mexico moves to be among the countries with the highest tax burden on regulated gaming in Latin America, at a time when the industry insists on the need for modern, competitive, and sustainable regulation.
Tags: Mexico, AIEJA, online gaming taxes Mexico, online betting taxes Mexico