Peru bill proposes raising online betting consumption tax to 5%
The bill, citing gambling addiction concerns, would increase the tax on each wager from the current 1% rate.
Peruvian lawmakers have introduced a bill proposing to increase the Selective Consumption Tax (ISC) on online gaming and sports betting from 1% to 5% of each wager.
The initiative was presented by deputies from the Civic Works Party (Partido Cívico Obras) at the instigation of Luis Aurelio Masco Cáceres.
The bill states the measure can contribute to a comprehensive policy for preventing problem gambling by increasing the specific tax burden on the activity.
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"The Ministry of Health reported that 14,409 cases of treatment for gambling addiction were recorded at health facilities nationwide in 2025, highlighting the need to strengthen prevention, early detection and specialised treatment efforts," the bill stated.
The bill's explanatory memorandum argues that digital access and advertising warrant stronger prevention measures, particularly for adolescents, young people and vulnerable groups.
"The expected benefit is not to position the tax as a solution to gambling addiction, but rather to incorporate an additional fiscal instrument into a broader set of measures covering prevention, regulation, oversight and care," the bill stated.
The ISC would remain separate from the current 12% tax on the gross gaming revenue of licensed remote operators established under Law 31557, which would be unchanged.
The higher 5% rate would apply exclusively to online bets, sparing land-based casinos, slot halls or physical betting establishments.
It would apply to all operators, whether incorporated in Peru or abroad, and the taxable base is defined as money, or a bonus valued in money, applied to a game or bet.
The bill also states the ISC serves a "revenue-generating purpose".
"Instead, it seeks to moderately raise the tax burden associated with the activity within a market that remains subject to authorisation and regulation," the bill continued. "The measure is conceived as a complementary prevention tool rather than a sole response to problem gambling."
The ISC at its current rate of 1% generates approximately 324 million soles ($94.1 million) a year, and the bill forecasts that a 5% rate could increase that to 1.62 billion soles, though it calls these figures a "static, illustrative scenario."
The bill acknowledges that operators could absorb the higher tax themselves, pass some or all of the additional cost on to bettors through changes to betting conditions, or share the burden between the two.
It identifies possible changes in betting activity and substitution towards other platforms as risks requiring assessment.
The proposal does not create new treatment programmes or earmark revenue for them, stating that prevention and care would continue within existing institutional responsibilities and budgets.
The bill used examples of other markets in the region, noting that in Argentina operators pay an indirect tax on online betting of between 2.5% and 15%, while in Colombia there is a 16% VAT on GGR for online operators.
With this in mind, the bill stated that the rise to 5% for the ISC "does not, in itself, constitute an extraordinary rate within the regional context".
Should the bill be successful, the law would enter into force the day after its publication in the official daily newspaper, El Peruano.
The 5% tax rate would then apply from the first day of the following calendar month.
Peru launched its regulated online gambling sector in February 2024, attracting international operators such as Stake, Rush Street Interactive and Betsson.
The enforcement of the 1% ISC began on July 1, 2025.