Peru lowers new tax on online gambling – for now

The new Selective Consumption Tax will be imposed at a lower rate for an initial transition period.

Peru.- President Dina Boularte has signed off on a new tax for online gambling in Peru. According to details published in the Official Gazette, the Selective Consumption Tax (ISC for the initials in Spanish) will initially be applied to online gaming and sports betting at 0.3 per cent, rising to 1 per cent from July 1.

The vice tax will be applied to online gambling transactions carried out in Peru by Peruvian citizens or residents. It was expected that the 1 per cent rate would apply immediately, but operators opposed the move, arguing that it would take them up to eight months to modify their platforms and gain recertification from the national regulator Mincetur in order to transfer the increased cost to players.

Boularte and finance minister José Arista Arbildo have finally opted to modify the implementation to grant a six-month transition period at the lower rate. However, some operators argue that Peru’s new tax framework will risk channelisation to the regulated market by making licensed operators less attractive to players.

The Peruvian Congress had already approved Bill-2070/2021, which imposes a 10 per cent tax on gross gaming revenues (GGR) for online sports betting and online casino gaming.

The new tax will be implemented from January 1, 2025, and the Ministry of Foreign Trade and Tourism (MINCETUR), which regulates gambling, will track transactions made using a Peruvian IP address, bank account, credit card or local SIM card.

The reforms of gambling regulation in Peru have seen the government regulate online sports betting and online casino gaming. MINCETUR has been ordered to increase the cost of online gambling licences to 3m sols (€750,000) both for new and existing operators.