Peru Bill Proposes Raising Online Betting Consumption Tax to 5%

A bill proposed in Peru seeks to raise the selective consumption tax (ISC) on online bets from 1% to 5% of each wager. The parliamentary group of the Civic Works Party introduced the measure, citing concerns over problem gambling and the need for greater tax revenue, according to reporting by Yogonet International.

The ISC increase would apply exclusively to online betting, leaving land-based gambling unaffected. It would remain separate from the existing 12% gaming tax on gross gaming revenue and would cover operators whether incorporated in Peru or abroad. If approved, the law would take effect the day after publication in El Peruano, applying from the first day of the following calendar month.

Market Background and Bill Rationale

Peru launched its regulated online gambling market in February 2024, attracting international operators including Stake, Rush Street Interactive, and Betsson. The 1% ISC took effect on 1 July 2025 after an earlier plan was dropped before the market opened but proposed again in 2024. The bill cites Ministry of Health figures showing 14,409 cases of gambling addiction treatment recorded nationwide in 2025. It states: “The measure can contribute to a comprehensive policy for preventing problem gambling by increasing the specific tax burden on the activity.” The text adds that the expected benefit is “to incorporate an additional fiscal instrument into a broader set of measures covering prevention, regulation, oversight and care.” Revenue generation is identified as a purpose, without seeking to prohibit online betting.

Revenue Outlook and Latin American Comparisons

At the current 1% rate, the ISC generates approximately S/324 million ($94.1 million) annually. The bill states that raising the rate to 5% could increase annual collections to S/1.62 billion, though it describes the projection as a “static, illustrative scenario.” The proposal references other Latin American markets, noting that in Argentina operators pay an indirect tax on online betting ranging from 2.5% to 15%. Colombia imposes a 16% value-added tax on GGR for online operators. The bill argues that a 5% ISC rate in Peru “does not, in itself, constitute an extraordinary rate within the regional context.” It acknowledges that the proposed increase could affect operators and bettors, depending on whether companies absorb the tax, pass costs through changes to betting conditions, or share the expense. The text notes that in Colombia some operators have offered bonuses to compensate for the tax effect.

Reporting: Yogonet International

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