The Association of Permit Holders, Operators, and Suppliers of the Entertainment and Betting Industry in Mexico (AIEJA) has responded to the reform to the Special Tax on Production and Services (IEPS), increasing this tax on gambling from 30% to 50%.
The AIEJA stated that it has been pushing for a change to Mexico’s antiquated gambling laws which date back to 1947 but to avail.
“For over a decade, we have requested an update to a law from 1947 that governs our sector, accompanied by an adequate fiscal reform that could not only appropriately frame an activity regulated by the Ministry of the Interior, which provides dignified jobs for over 200 thousand Mexican families in 30 of the 32 states of our Republic, but could also generate more taxes if our authorities understood that a higher tax burden leads to lower revenue.”
According to the AIEJA while the increase has been justified on the grounds that it will protect the health of Mexican citizens it will instead only serve “as an incentive for bettors and players who currently use authorized and supervised platforms by the Ministry of the Interior to flee to the illegal gambling market, completely escaping the oversight of our country’s political and fiscal authorities.”
The AIEJA also demanded “the implementation of effective measures to fight against the illegal gambling offers that proliferate online today, representing a clear unfair competition for legally established operators.”
The organisation argued that the tax measure signifies a notable rise in operational expenses within the country, putting the smallest businesses at risk and further dissuading potential investors who were showing interest in committing to Mexico, especially at a time when there are discussions about updating the legal framework surrounding gambling.
At the end of last month the Senate approved with the votes from ruling party Morena and its allies, the Economic Package for 2026, which includes taxes on the consumption of sugary drinks, tobacco, violent video games, online betting, and digital platforms, as well as granting broader powers to the Tax Administration Service (SAT) to combat tax evasion and avoidance.
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The Association of Permit Holders, Operators, and Suppliers of the Entertainment and Betting Industry in Mexico (AIEJA) has responded to the reform to the Special Tax on Production and Services (IEPS), increasing this tax on gambling from 30% to 50%. The AIEJA stated that it has been pushing for a change to Mexico’s antiquated gambling laws…
The post Tax hike in Mexico will drive players to illegal market says AIEJA appeared first on G3 Newswire.