Mexico plans comprehensive gambling reform

Mexico’s largest political party, Morena, has initiated proposals to comprehensively reform the country’s gambling taxation and regulatory regime.

The reforms will see the increase of the Special Tax on Production and Services (IEPS) for online sports betting, under a new tax regime.

At present, operators are taxed via a combination of income taxes, the IEPS and at local and state level. The reforms will end taxation at local and state level, giving the Mexican government the exclusive right to tax gambling services.

In a statement, the party said betting had not been taxed in accordance with international practice and that the social costs linked to this activity had “not been fully compensated”.

The reforms are part of a wider package of measures designed to comprehensively reform the Mexican financial services sector, under new Mexican president Andres Manuel Lopez Obrador.

The reforms also aim to combat illegal gambling, providing a greater standard of security to gamblers.

The party has confirmed that a number of additional changes to the gambling regime will be unveiled over the coming months.