Mexico enters 2026 with a gambling and betting market valued at over $10 billion annually. Yet, it is still largely governed by laws dating back to 1947. Recent developments, including the 2026 Fiscal Package, ongoing gambling law reforms, and increased regulatory scrutiny, mark a pivotal moment for the country’s gaming industry. The path that Mexico chooses could determine whether it becomes Latin America’s largest regulated market. Otherwise, it could see continued expansion of its significant illegal sector.
Market Growth Outpacing Regulation
At the SBC Summit 2025 in Lisbon, industry stakeholders were warned that the Mexican gaming market had outgrown its current legal framework, showing how Mexico has become a topic of concern for regulation and enforcement.
- Codere CEO Aviv Sher highlighted that historical concessions from the mid-20th century remain. Meanwhile, debates have focused more on revenue generation than sector development.
- Experts caution that over-taxation could push players toward the illegal market. Currently, that market accounts for nearly 60% of online gaming activity in Mexico.
Toward a New Gaming Law
In October 2025, Congressman Ricardo Mejía Berdeja proposed a new federal gaming law, aiming to replace the outdated 1947 statute in Mexico. Key elements include:
- Creation of a National Institute of Games and Sweepstakes for regulation, inspection, and enforcement
- Responsible gaming measures, including self-exclusion tools and betting limits based on player finances
- Minimum gambling age of 21 years
Andrea Avedillo Builla, Legal Director at Lazcano Sámano, noted that the law represents more than an update. Instead, it redefines the regulatory structure, with the potential for an autonomous or decentralized authority bringing professionalism and legal certainty to Mexico’s gaming sector.
Fiscal Pressures on the Industry
The 2026 Fiscal Package introduces significant tax reforms that will impact Mexico’s gaming landscape:
- IEPS tax rate raised to 50%
- Mandatory registration of all platforms with tax authorities
- Requirement for operators to withhold applicable taxes
- Expanded powers for SAT to access real-time platform data
- Amendment to the Amparo Law, obliging platforms to settle taxes fully before disputing them
These measures signal a shift toward stricter fiscal oversight and financial traceability in Mexico. Consequently, the industry must adapt compliance and operational strategies to meet these new standards.
Payments, Crypto, and Modernization
Innovation in payments, including cryptocurrencies, presents both opportunities and challenges for Mexico’s gaming operators. Operators using crypto must navigate regulatory uncertainty while aligning with anti-money laundering and taxation requirements. The intersection of modern payment solutions with heightened regulation will be a critical factor for Mexico and its industry sustainability.
A Crossroads for the Market
Mexico now stands at a defining moment:
- Success: Balanced regulation and taxation, effective enforcement, and support for innovation could position Mexico as the largest regulated gaming market in Latin America. As a result, it could surpass Colombia, Peru, and Chile combined.
- Risk: Excessive taxes and restrictive regulations could bolster the illegal gaming sector, undermining legitimacy, player protection, and long-term viability throughout Mexico.
The coming months will be decisive, as Mexico seeks to modernize its regulatory framework. At the same time, it aims to maintain the growth and integrity of its gaming industry.