The Mexican iGaming market is entering a period of significant change: the IEPS tax rate will rise from 30% to 50% in 2026. This is the largest tax tightening in recent years.
Licensed operators will need to adapt, but at the same time the reform may reshape the market’s competitive landscape, including by increasing pressure on the illegal segment.
Licensed operators will need to adapt, but at the same time the reform may reshape the market’s competitive landscape, including by increasing pressure on the illegal segment.
Market Context
🔵 The IEPS increase to 50% has been approved
🔵 The regulator’s focus is shifting toward stronger compliance
🔵 The market currently has a high share of offshore operators
🔵 The 2026 World Cup in Mexico will boost betting demand and overall activity
🔵 Overall trend: the market is becoming less comfortable for operators working outside the legal framework
Reaction of Licensed Operators
🔴 Revising contracts with tech providers and media partners
🔴 Optimizing expenses and reallocating budgets
🔴 Preparing for increased traffic in 2026
🔴 Focusing on a sustainable financial model under the new rules
Changes for the Illegal Segment
🔵 Increased regulatory attention toward offshore operators
🔵 Higher risk of payment channel and traffic blocks
🔵 Possible player migration to offshore platforms if legal operators worsen their offer
Where Market Opportunities Emerge
🔴 A more predictable competitive environment
🔴 More efficient marketing due to reduced competition
🔴 Incentives for technological upgrades and operational restructuring
🔴 The strong sports season of 2026 as a growth catalyst
Conclusions
The tax increase complicates the economics but makes the market more transparent. Legal operators will face rising costs and reduced competition, while illegal operators will see stronger regulatory pressure and potentially more players. Against this backdrop, the 2026 World Cup will become an important growth point for all operators.
🔵 The IEPS increase to 50% has been approved
🔵 The regulator’s focus is shifting toward stronger compliance
🔵 The market currently has a high share of offshore operators
🔵 The 2026 World Cup in Mexico will boost betting demand and overall activity
🔵 Overall trend: the market is becoming less comfortable for operators working outside the legal framework
Reaction of Licensed Operators
🔴 Revising contracts with tech providers and media partners
🔴 Optimizing expenses and reallocating budgets
🔴 Preparing for increased traffic in 2026
🔴 Focusing on a sustainable financial model under the new rules
Changes for the Illegal Segment
🔵 Increased regulatory attention toward offshore operators
🔵 Higher risk of payment channel and traffic blocks
🔵 Possible player migration to offshore platforms if legal operators worsen their offer
Where Market Opportunities Emerge
🔴 A more predictable competitive environment
🔴 More efficient marketing due to reduced competition
🔴 Incentives for technological upgrades and operational restructuring
🔴 The strong sports season of 2026 as a growth catalyst
Conclusions
The tax increase complicates the economics but makes the market more transparent. Legal operators will face rising costs and reduced competition, while illegal operators will see stronger regulatory pressure and potentially more players. Against this backdrop, the 2026 World Cup will become an important growth point for all operators.