Mexico Suspends 13 Casinos as Tax Hike and Tightening Rules Spark Fears of Black-Market Shift

_{UK operators eye Mexico for signs of changes driving players offshore. (Image: Westend61 GmbH)}

Mexico has suspended 13 casinos as part of a major money-laundering investigation, escalating pressure on a gambling market already facing a sweeping tax overhaul that is reshaping operator behaviour at home and abroad.

The government announced the closures on Wednesday following a joint operation between the Secretaría de Hacienda y Crédito Público and the federal security cabinet. The companies involved operated venues across states including Jalisco, Nuevo León, Sinaloa, Sonora, Baja California, State of Mexico and Chiapas. Officials said the sites displayed “conducts presumptively consistent with international money-laundering typologies.”

The Investigation

Authorities allege the land based casinos moved millions of dollars through cash transactions and transfers to countries such as the United States, Panama, Romania, Malta and Albania. Investigators detailed a scheme that relied on stolen identities from students, homemakers and retirees. Participants were issued prepaid cards or betting codes to place small wagers, which the casinos then recorded as large winnings. The inflated amounts were transferred abroad through front companies and tax havens before being routed back into Mexico.

Grupo Salinas, owned by businessman Ricardo Salinas Pliego, said two of its casinos were among those targeted. The group denied wrongdoing and described the action as harassment.

Officials added that while the companies under investigation had alleged links to organised crime, that did not confirm cartel involvement in each case.

A Crackdown During Mexico’s Biggest Gambling Shake-Up in Years

The enforcement action comes less than two weeks after Mexico raised its Special Tax on Production and Services (IEPS) from 30% to 50%. The change has generated strong reactions because of the way Mexico calculates gaming tax.

Unlike the UK, where duty is based on gross gaming revenue, Mexico taxes turnover. The IEPS law states that the levy is applied to “the total amounts effectively received” and on “the total amount wagered.”

“The tax shall be calculated on the total amounts effectively received by the taxpayer from offering games with bets and lotteries. In the case of games with bets, the tax shall be determined on the total amount of wagers received by the taxpayer.”

Because operators cannot deduct payouts or costs, the effective tax burden becomes significantly heavier. Land-based venues, which carry higher fixed expenses, are expected to feel the most pressure. Online casinos have more flexibility but will still face increased compliance costs.

Alongside the tax rise, Mexico has introduced new obligations for international B2C and B2B firms, including mandatory fiscal representation, real-time reporting and stricter financial traceability. Regulators say this will help eliminate grey operators and align Mexico with countries such as Spain, Colombia and the UK.

A Debate UK Readers Will Recognise

Mexico’s reforms have ignited concerns that resemble long-running discussions in the UK gambling sector. British operators have often warned that heavy regulation, higher taxes or increased friction can push players to offshore sites that operate outside consumer protections.

Similar views have already surfaced on LinkedIn and other industry forums in response to Mexico’s changes. Commentators argue that a 50% turnover tax could make regulated operations financially unsustainable and incentivise players to seek unlicensed alternatives. Others say Mexico’s plan aims to prevent this by tightening controls on all operators and closing loopholes that historically allowed grey-market play.

For UK readers, the parallel is clear. Both countries are trying to balance consumer protection and financial integrity while avoiding a shift toward unregulated gambling. How Mexico’s market responds may offer insight into the unintended consequences of major policy changes.

What Impact Will Mexico's Changes Have on UK Operators

Mexico is the largest gambling market in Latin America and a key target for UK brands expanding abroad. The new regime presents both challenges and potential advantages:

• Higher costs and stricter reporting may deter operators with lighter compliance structures.
• Well-regulated companies, including those from the UK, may benefit if the reforms clear out grey operators.
• The AML crackdown shows Mexico intends to raise standards, not simply increase tax revenue.
• The outcome could influence how other LATAM markets shape their own regulatory frameworks.

With several UK gambling groups active in the region, understanding Mexico’s shift has become important for long-term strategic planning.

By shutting down 13 casinos and implementing a significant tax and compliance overhaul, Mexico is signalling a move toward a more disciplined and transparent gaming market. The challenge will be balancing enforcement with sustainable regulation. The outcome will determine whether Mexico strengthens its regulated market or risks driving activity to the shadows, a concern that UK operators are already watching closely.