Mexico’s tax authority, the Servicio de Administración Tributaria (SAT), has launched an aggressive campaign to monitor and tax undeclared online gambling winnings, as part of a broader strategy to modernize the country's gaming and fiscal oversight.
With Mexico’s online casino industry now estimated to generate over $3 billion annually, and forecasted to grow at 7.7% annually through 2034, the government has turned its focus to players who fail to report earnings from gaming platforms. This surge in digital gambling activity has prompted SAT to deploy AI-driven data analytics tools to track suspicious financial movements across gaming sites.
The main concern lies in individual gamblers bypassing tax obligations. Under current laws, all income—including gambling prizes—is taxable, yet many online players either don’t report winnings or are unaware of their legal responsibility to do so.
Mexican Government Focuses on Modernizing Gaming and Lotteries Industry
To address the gap, SAT is working with the Ministry of Finance and other agencies to propose legislative reforms that will update Mexico’s gaming laws, establish clearer frameworks for online platforms, and ensure greater fiscal compliance.
Mexico is a market that is not insignificant and that they do not consider
This regulatory push aims not only to increase tax collection, but also to enhance transparency, consumer protection, and long-term sustainability in Mexico’s rapidly expanding iGaming market.
