• Mexico’s government has publicly acknowledged that its primary gambling law, enacted in 1947, is obsolete and in urgent need of modernisation to provide legal certainty.
• Despite this admission, the ruling MORENA party has no timetable for a regulatory overhaul and is instead pushing ahead with a controversial proposal to hike the gambling tax to 50%.
• The industry, led by trade body AIEJA, is warning that this contradictory approach creates huge uncertainty and risks strengthening the illegal black market.
• Major operators have cautioned that the current framework is dangerously unprepared for major events like the 2026 FIFA World Cup, which Mexico will co-host.
• The proposed 50% tax has been slammed by industry leaders as a move that will deter investment and drive players towards unlicensed offshore sites.

A Contradictory Approach to a Booming Market

London, UK - 29th September 2025 - The government of Mexico has found itself in a deeply contradictory position, publicly admitting that its foundational gambling law is a 78-year-old relic that is unfit for purpose, while simultaneously pushing for a massive tax hike on the industry without any plans for a modern regulatory overhaul.

This confusing stance has created mounting frustration for operators and investors in one of Latin America’s most promising online gambling and sports betting markets. The industry is warning that the government’s approach risks fuelling the very illegal practices it claims it wants to combat.

The Government’s Mixed Messages

In a recent speech before the Chamber of Deputies, Interior Secretary Rosa Icela Rodríguez made a frank admission about the state of Mexico’s gambling law. “ Seventy-eight years have passed since this law was enacted, and it has not been updated despite the technological advances that have transformed the sector,” she said, acknowledging an urgent need for modernisation to provide “legal certainty” and combat money laundering.

However, this call for reform stands in stark contrast to the actions of President Claudia Sheinbaum’s government. The administration’s draft budget includes a proposal to more than double the tax burden on the sector to a punitive 50% of net income, a move that was tabled without any industry consultation. The ruling MORENA party has so far published no timetable for the comprehensive regulatory reform that both the industry and its own ministers agree is necessary.

Industry Warns of ‘Dangerous Exposure’ Ahead of World Cup

The lack of a modern, coherent framework is a growing concern for licensed operators, particularly with the 2026 FIFA World Cup on the horizon. Aviv Sher, CEO of Codere Online, recently warned that Mexico’s current framework leaves it dangerously exposed. “ We cannot withstand indefinitely uncertainty in the rules of the game,” he stated.

The proposed 50% gambling tax has been met with universal alarm. “ A tax burden of 50% denies investment in Mexico,” said Etna Rueda, Online Operations Director at Big Bola Casinos. “ Far from stimulating growth or boosting revenues, it risks driving players towards unlicensed operators who contribute nothing to the economy or consumer protection.”

The national trade body, AIEJA, has led the campaign for modernisation. Its president, Miguel Ángel Ochoa Sánchez, argues that a well-regulated gambling sector could deliver huge economic benefits, but that requires a clear and stable legal framework. “Without reform, Mexico risks falling behind its peers in Latin America,” he warned.

The industry now faces a period of deep uncertainty. The government appears to want the tax revenues of a modern, regulated market, but seems unwilling to do the difficult legislative work required to create one. By prioritising a punitive gambling tax over a fundamental overhaul of its 1947 gambling law, it is creating a high-risk environment that threatens the long-term health of the entire sector.