he Mexican government has unveiled plans to increase the tax on online wagers by 20%, in an attempt to place the taxation scheme of this segment on an equal footing to land-based casinos and bingo halls. Stakeholders, of course, have already received the news with disappointment.
Emmanuel Reyes Carmona, a member of the Chamber of Deputies —the Mexican Congress’ lower house— submitted a proposal to impose an excise tax on online gambling, which is likely to be approved without major objections.
He pointed out that, given the evident growth of this activity in Mexico, it is necessary to adopt specific laws and taxes that place online gambling on an equal footing to other segments in Mexico.
Now, considering that the most popular online casinos are based in Mexico, the industry’s reactions have not been positive, although they expect to come to an agreement with the government.
The segment is increasingly growing, especially as regards sports betting, and more specifically football wagers. Mexicans are among the top bettors in the world, especially in events such as the World Cup or the Champions League.
Mexico is expected to become a leader in the segment, which makes the process of solving any issues that may arise much easier. Even with a 20% increase in taxes, it will still remain a very favorable market for investors.