Gee, smell the oil. 2 cycle oil smells like oil or more likely like gasoline. Gear oil smells like rotten eggs. If 2 cycle oil, go boating. If gear oil, you need to find and repair the leak.
My 35 year old Merc gearcase leaked twice at the shift rod, in the last 15 years. Easy fix. My 25 year old Johnny gearcase had a leak at the driveshaft seal. Not as easy a fix, but it shows that seals can last a long time.
Pressure test it and see where she leaks. On Mercs, they often leak at the driveshaft seal, which is installed in the water pump base.