Peru bill proposes hiking online betting consumption tax to 5% of wager
The proposed tax hike is aimed at preventing gambling addiction and generating revenue, according to the bill's text.
A new bill in Peru proposes to increase the selective consumption tax (ISC) on online gaming and sports betting to five percent of each wager. The current rate is one percent. The bill was presented by deputies from the Civic Works Party, led by Luis Aurelio Masco Cáceres. The tax would remain separate from the existing 12 percent tax on the gross gaming revenue of licensed remote operators. Land-based gambling establishments would be spared the increase.
The bill cites gambling addiction prevention and the protection of vulnerable players as key motivations. It highlights Ministry of Health figures recording 14,409 cases of treatment for gambling addiction at health facilities nationwide in 2025. "The measure can contribute to a comprehensive policy for preventing problem gambling by increasing the specific tax burden on the activity," the bill stated. It added that the tax also serves a revenue-generating purpose, but is not intended to prohibit online betting.
If passed, the law would enter into force the day after its publication in the official daily newspaper, El Peruano. The five percent rate would then apply from the first day of the following calendar month. The tax would apply to the value of each wager, defined as money or a bonus valued in money applied to a game or bet. The same rate would apply to both domestic and foreign licensed operators.
The bill forecasts that the tax at its current one percent rate generates approximately 324 million soles (94.1 million U.S. dollars) annually. At five percent, this could increase to 1.62 billion soles, though the bill notes these are static, illustrative figures. It argues the higher rate is not extraordinary within the Latin American regional context, citing Argentina's indirect tax on online betting of between 2.5 and 15 percent and Colombia's 16 percent value-added tax on gross gaming revenue. The proposal acknowledges that operators could absorb the higher tax, pass some or all of the cost to players, or share the burden. It identifies possible changes in betting activity and substitution towards other platforms as risks. The bill does not create new treatment programmes or earmark the additional revenue for specific initiatives, stating prevention and care would continue within existing institutional responsibilities and budgets. Peru launched its regulated online gambling sector in February 2024, attracting international operators like Stake, Rush Street Interactive and Betsson. An original plan to include a consumption tax was scrapped before the market launch but was reintroduced and enforced at one percent starting July 1, 2025. The new bill to raise it to five percent is now before lawmakers for consideration.