For online gambling operators in Latin America’s biggest market, Mexico, the news is disheartening. The Mexican government has revealed its plans to hike the online gambling tax to the tune of 20 percent.
The government has proposed to bring the online casinos and other gambling operations under the same tax structure as that of land-based gambling facilities.
According to the reports in the local media, Emmanuel Reyes Carmona, a member of the Morena party that controls Mexico’s Chamber of Deputies has proposed applying the country’s excise tax (Impuesto Especial Sobre Producción y Servicios or IEPS) to its online gambling operators at a rate of 20%.
The lawmaker also said that online gambling in the country is thriving and there are no precise and specific laws to regulate them. He also pointed out several loopholes in the existing structure. As such, he went on to propose a solution which is to bring the online gambling operations under the same tax regime as that of the land-based licensed gambling operators.
The online gambling market has been expanding in the Latin American country. Earlier this year in June, online betting brand Bet 365 went live in country with a dedicated Mexican domain.
Bet365 has partnered with Ganador Azteca, a subsidiary of TV Azteca, which boasts of one of the top sports networks in Mexico managing over 40 local broadcasts and regional free-to-air stations. The media company had secured a 25-year licensing agreement from the Ministry last year.