Mexico Considers Gamble on Sports Betting Ahead of World Cup

Mexico is looking to maximize its benefits from hosting the 2026 World Cup, but is risking a lot to do so.

Lawmakers are currently considering the 2026 budget, which includes raising the tax rate for sportsbooks from 30% to 50%. This would apply to all retail and online operators, including those that don’t have a tax residence in Mexico. 

The hope is that the increased rate will lead to far more tax revenue being generated during the World Cup. However, there is reason to believe the massive change could have the opposite effect.

Sportsbooks Already Face High Taxes

The biggest concern over the proposed tax hike is that it will drive sportsbooks out of the country. Operators already face staggering taxes to regulators, cities, states, and the Interior Ministry. That has led to higher prices for bettors, leaving operators with just enough profit to make their investments worth making.

If lawmakers decide to approve the massive tax hike, it would likely tip the balance of those scales. While increasing prices could lead them to operate through Mexico’s World Cup hosting duties, they would pull out of the market once it's done. This would cut a key source of tax revenue, leading to even more budget concerns for all levels of government.

Will International Bettors Pay Higher Prices?

There will be a certain level of “Sticker shock” when international soccer fans flood into Mexico to attend World Cup matches. Even if the proposed tax hike fails, the ability for sportsbooks to improve their odds will be limited by the existing tax system. 

That leaves us to wonder how many visitors will decide to place wagers with soccer betting sites while in Mexico. Many of those traveling may choose to place their bets before they leave. There will also be many who move on to the US or Canada as the World Cup advances, where they will likely find more favorable odds.

Know Before You Go

While the proposed tax hike has until next month to be voted on, it could signal a larger campaign to crack down on the industry. The extreme proposal may not pass, but it could lead to discussions on other options to capitalize on the spike in tourism during the World Cup this summer. One way to address this issue would be to crack down on operators by implementing regulations and removing those who fail to comply.

Mexico opting to clean up the industry would be good news for bettors, but it does mean the market could look very different by June. That makes staying informed critical, helping you avoid losing money to illegal operators and violating new gaming laws. 

We’ll continue to cover this story, giving you everything you need to know before placing your first bet.