Sheinbaum’s Government Proposes New Tax on Violent Video Games and Gambling

Goodbye to Cheap Call of Duty?

The government of Claudia Sheinbaum is seeking to establish, starting next year, a special 8% tax on digital services related to violent video games, in addition to increasing the quota from 30% to 50% on the total amount of bets or winnings.

The president’s new initiative aims to address recent findings that link video game use with violent behavior in teenagers, highlighting the negative social and psychological effects in the community, such as isolation and anxiety.

For the first time, video games with extremely violent content or rated for adults would be subject to an 8% IEPS tax. The law would apply to both physical video games and digital platforms, as well as subscription services (including additional in-game content). The revenue collected from these taxes would be allocated to social prevention programs and psychological care.

The Treasury project also seeks to standardize the tax burden, as it includes changes to the tax on gambling and lotteries, increasing its rate from 30% to 50% on digital platforms and physical establishments. If approved, this fiscal reform would set a precedent in Mexico’s digital entertainment industry, impacting both gamers and companies in the sector.