Mexico Imposes 50 Percent Sin Tax on Gambling Operators

Mexico has imposed a 50 percent sin tax on gambling operators as part of its 2026 Budget. Aviv Sher, CEO of Codere Online, has warned that the tax burden will widen the competitive gap in favor of the black market. Mexico’s gambling trade association, AIEJA, has been campaigning for a review of the 1947 Federal Law on Games and Lotteries, a century old legislation widely regarded as outdated in a digital era.

Without formal consultation, Morena placed gambling alongside alcohol, tobacco and high-sugar drinks within its new sin tax regime. The IEPS sin tax measure applies only to licensed operators.

Aviv Sher, CEO of Codere Online, said: The only real difference between a legal and an illegal operator in Mexico is the tax burden. If you increase that burden by 50 percent, you widen the competitive gap in favour of the black market.

For Codere, survival is not in question. Sher acknowledged that the company’s established scale provides resilience. However, smaller operators face a more existential challenge that could ultimately weaken the regulated ecosystem.

Sher confirmed that marketing budgets will inevitably contract under the new tax environment. Less marketing means less visibility for regulated platforms, and if players cannot clearly identify the regulated offer, the black market fills that vacuum.

Sher maintained that the liabilities of Mexico’s regulatory and tax decisions will be visible during the FIFA World Cup 2026, an event that will place Mexico at the centre of global attention.