Mexico moves towards increasing the IEPS on online gambling
The Senate of the Republic of Mexico took a decisive step towards the approval of the 2026 Fiscal Package, which includes a substantial increase in the tax burden applied to online gambling and other regulated activities.
The Joint Commissions of Finance and Public Credit approved the package last Tuesday without modifications to the text sent by the Chamber of Deputies, after an extensive session. The project includes reforms to the Federal Fiscal Code, the Federal Rights Law, the Special Tax on Production and Services (IEPS) Law, and the Revenue Law.
Among the highlighted measures is the increase of the IEPS on games and lotteries, including digital casinos, from 30 to 50 percent, as well as the obligation for digital platforms to register with the RFC and withhold the full corresponding tax.
The package also introduces real-time auditing tools, which will allow the tax authorities to access data from digital platforms to monitor the payment of VAT and IEPS, in order to reduce evasion.
Additionally, the tax on video games with violent content is expanded, and the rate on sugary drinks is raised, in line with the revenue and public health policies promoted by the Executive.
The initiative sparked debate in the Senate. Senator Cristina Díaz criticized the project, considering it regressive, arguing that it will directly affect consumers and grant the SAT excessive supervisory and sanctioning powers over digital platforms.
The approved report will be sent to the full Senate, which has until October 31, 2025, to cast its final vote and send it to the Executive Branch for promulgation.
Tags: Mexico, regulation, taxes, online betting