Mexico Senate approves 2026 Fiscal Package with 50% tax on betting and gaming

Mexico’s Senate Committee on Legislative Studies has approved the 2026 Miscellaneous Fiscal Package, endorsing significant tax hikes on betting and gaming.

As part of President Claudia Sheinbaum’s 2026 economic strategy, the proposal raises the Special Tax on Production and Services (IEPS) for betting and online casino operations from 30% to 50%. Additionally, an 8% IEPS will now apply to video games containing violent content – a category previously untaxed.

The IEPS targets products and services considered harmful to public welfare, such as alcohol, tobacco, gambling, and now violent video games. Lawmakers said the measure aims not only to boost public revenue but also to discourage socially harmful behaviours.

The committee noted that the extra funds collected will support public health, hospitals, and preventive education initiatives. Members emphasised that the new tax rates are consistent with international fiscal norms and are intended to promote population health, not to penalise specific industries.

Senators also stressed the need for full regulation of online betting and gaming in Mexico, arguing that foreign operators should contribute fairly to the national tax system. The committee’s chair framed the reforms as an act of public responsibility, highlighting the government’s constitutional duty to protect citizens’ health and reduce inequality through tax reinvestment.

According to officials, all IEPS revenue will be channelled back into healthcare and social welfare programmes, aligning with Mexico’s broader effort to modernise its fiscal policy and adopt international standards for digital and entertainment sectors.

The Chamber of Deputies already approved the proposal earlier this month. The Senate will hold a final vote before 31 October, after which – if unamended – it will be published in the Official Gazette of the Federation (DOF) and come into force on 1 January 2026.