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The upper house supported the legislation with 75 votes in favor and 37 against in the general vote, and 76 votes in favor and 34 against in the detailed vote. Following approval, the Board of Directors referred the ruling to the Executive branch for final implementation.
According to the approved proposal, the tax increase was designed to contribute to anti-money laundering efforts by requiring operators to make their income transparent and reducing opportunities for illicit operations.
Expected Revenue and Budget Allocation
The Ministry of Finance projects the fiscal reform will generate MXN 761.5 billion (approximately USD 40 billion) in 2026, representing a 10% increase compared to 2025 estimates. Portions of the revenue from these measures will be allocated to health programs.
The tax reform extends beyond online gambling, affecting tobacco, flavored beverages, video games with violent content, and various services including immigration procedures, issuance of phytosanitary certificates, and use of the radioelectric spectrum.
Political Response and Opposition
During the debate, Senate President Laura Itzel Castillo defended the reforms as part of a vision of "fiscal responsibility with social justice." Opposition parties, including PAN and PRI, rejected the proposals.
Industry Concerns About Market Impact
Experts have raised concerns about potential revenue losses and market disruption. Industry analysts warn that the Tax Administration Service (SAT) could lose MXN 12 billion (USD 650 million) when accounting for market growth projections.
Legal sources consulted by newspaper Milenio suggest the increased tax burden could drive operators out of the legal market and strengthen illegal gambling operations.
“The measure seems to be an incentive for bettors and players who currently use platforms authorized by the Ministry of the Interior to flee due to the increased cost of these bets, towards the growing illegal gambling market.”
Tax lawyers from the firm Lazcano and Avedillo provided this assessment.
Current estimates indicate that approximately 60% of online betting available to Mexican players operates illegally. Legal experts warn that raising the tax rate could force licensed operators to reconsider their business models or exit the market entirely.
Source: Mexican Senate
