Key Moments:
- Private sector representatives have voiced strong opposition to the proposed increase in ad valorem duty on internet gaming from 30% to 50%.
- Industry stakeholders cautioned lawmakers that raising the tax could expand unregulated gambling and reduce legal sector employment and investment.
- The Finance Committee is expected to begin review of the 2026 economic package, including this proposal, next week.
Business Community Raises Concerns Over Tax Proposal
The government’s proposal to elevate the ad valorem tax rate on online gambling from 30% to 50% has triggered a wave of concern among Mexico’s private sector. Business leaders have warned that the move could result in significant job losses, dwindling investment, and a surge in illegal gambling activity across the country.
During an informal session with the Chamber of Deputies’ Finance Committee, representatives from affected companies and unions urged lawmakers to reconsider the fiscal changes, citing damage to the formal economy and potential decreases in state revenue.
Industry Leaders Warn of Harmful Economic Effects
Alfonso Pérez Lizaur, president of Asociación de Permisionarios y Proveedores de Juegos y Sorteos AC, addressed the committee, stating that an abrupt tax increase would have far-reaching consequences.
“Increasing the tax on gambling will drive players and operators into the black market, costing a major financial loss and an unfair advantage over regulated casinos, lotteries, and gaming operators”, Pérez Lizaur warned. “Ironically, this might even lower the tax intake of the government instead of increasing it.”
Pérez Lizaur emphasized the sector’s role in supporting Mexico’s formal economy and state public policies through employment and taxes. Citing data from the National Institute of Statistics and Geography (INEGI), he noted that regulated gaming activities generated MXN 42.2 billion in official revenue, largely derived from digitally licensed operators overseen by the Secretariat of the Interior (SEGOB) and the Tax Administration Service (SAT).
Potential Expansion of Unregulated Gambling
Stakeholders have stated that the contemplated tax hike may inadvertently encourage growth in the underground gambling market. Increased tax and compliance burdens could leave regulated operators unable to compete with unauthorized or offshore platforms offering more attractive odds and rewards to consumers.
Trade organizations fear such market shifts would erode confidence in Mexico’s regulated gaming industry and leave players more susceptible to fraudulent or unsafe practices. “Once users migrate over to illicit sites, getting them back into the formal sector is extremely difficult”, Pérez Lizaur stated.
Economic Package Under Review
The discussion over the gambling tax is part of the wider evaluation of the 2026 economic package, which Finance Secretary Édgar Amador introduced in September. The Finance Committee’s review of the proposal is expected to commence next week.
Operators as well as industry experts have advocated for policies that promote fiscal sustainability without discouraging formal investment or growth in the country’s online gaming market. They highlighted that Mexico’s licensed sector has made progress in compliance and technological innovation, supporting social causes and reaching international standards. A substantial increase in taxation, they argue, could reverse this progress and create lasting instability.
Calls for Constructive Dialogue and Sustainable Regulation
Gaming sector representatives have encouraged the government to engage with all stakeholders before implementing any significant reform. According to them, effective regulation should balance sound taxation, competitiveness, and consumer protection.
“The legal casino sector of lotteries and other games produces significant amounts of the formal economy and contributes to paying for public policy”, Pérez Lizaur said. “We should have a system that appeals to investment, appeals to fair competition, and does not push people towards illegal alternatives.”
The future of Mexico’s gaming industry now hinges on whether lawmakers will proceed with the proposed tax hike or pursue a more measured approach that serves both fiscal goals and industry stability.
| Current Tax Rate | Proposed Tax Rate | Regulated Gaming Revenue (MXN Billion) |
|---|---|---|
| 30% | 50% | 42.2 |
- Author
Daniel Williams
