Codere Prepares for Mexico’s 2026 IEPS Tax Overhaul
Mexico’s gambling sector is heading into a decisive reset as a major tax hike looms for 2026, a shift that many operators view with unease. Yet Codere Online’s leadership is approaching the change from a different angle, suggesting the overhaul may finally streamline a market long disrupted by irregular competitors.
This perspective was shared by Oscar Iglesias, currently CFO and soon joining Codere Online’s Board during a recent investor briefing. Iglesias admitted that the cost impact of the reform is difficult to quantify but said the company expects the industry environment that emerges afterward to be “more favorable” for fully regulated operators.
Congress Approves Major IEPS Overhaul
Mexico’s Chamber of Deputies and Senate have already signed off on a reform to the Special Tax on Production and Services (IEPS), raising the gambling tax from 30% to 50%. It is one of the most significant fiscal shifts the sector has seen in years and will force bookmakers and casino operators to rethink their financial approach.
Although the increase adds pressure, Codere is entering this period with a strategic opportunity on the horizon. Mexico’s role as a host nation for the 2026 FIFA World Cup is expected to spark a surge in entertainment spending, new-player acquisition and betting activity, a potential buffer against the heightened tax burden.
Codere Prepares a Multi-Layered Response
Iglesias explained that Codere has begun renegotiating terms with its technology suppliers, media partners and other strategic vendors. The goal is to rebalance costs, explore shared-expense frameworks and ensure the business remains strong despite the jump in tax obligations.
He also underscored that true regulatory improvement must include enforcement against offshore, gray-market and tax-haven operators. These unregulated entities, he argued, distort competition and undermine the companies that operate legally and contribute fully to Mexico’s fiscal system.
Mexico: Codere’s Anchor Market
Codere reiterated that its relationship with Mexican authorities has been consistent and constructive over the years, and that this collaboration remains central to its strategy. The company is confident in the market’s long-term potential even as it braces for short-term financial pressure.
The significance of Mexico to Codere’s business is substantial: in the company’s latest quarterly results, the market represented 52% of total revenue. That scale provides the company with both stability and influence as it navigates the changes ahead.
A Tax Change Set to Redefine the Industry
The IEPS reform is expected to alter the trajectory of Mexico’s gaming sector. While the 50% rate introduces new challenges, Codere believes the transition could ultimately create a cleaner and more predictable industry landscape especially as the World Cup elevates demand and visibility in 2026.
Codere’s approach includes internal restructuring, supplier optimization and closer alignment with regulatory expectations. From the company’s perspective, the reform represents more than a tax hike: it is a watershed moment that could modernize the sector, strengthen oversight and reward operators with strong compliance and long-term strategic investment.
