Peru lowers new Selective Consumption Tax on online gambling to 0.3%

Rajashree Seal January 22, 2025
Peru lowers new Selective Consumption Tax on online gambling to 0.3%

Peru President Dina Boluarte and Finance Minister José Arista Arbildo have signed off on a new tax for online gambling and sports betting. The new Selective Consumption Tax (ISC) will initially be set at 0.3 per cent before rising to 1 per cent on July 1.

The new tax will be implemented from 1 January 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 Peruvian Congress had earlier approved Bill-2070/2021, which imposes a 10 per cent tax on gross gaming revenues (GGR) for online sports betting and casino gaming.

The new move aims to provide a six-month transition period for operators, allowing them to update their platforms and obtain recertification from the national regulator, Mincetur. The transition period was introduced after operators opposed the immediate application of the 1 per cent rate, arguing they needed time to adjust their systems and pass on the costs to players. They expressed concerns that it would take up to eight months to modify their platforms and secure recertification from Mincetur, to transfer the increased cost to players.

Additionally, the cost of online gambling licences has been increased to 3 million sols (€750,000) for both new and existing operators.

Industry concerns

Several operators have voiced reservations about the new regulations. Gonzalo Pérez, CEO and Partner of Apuesta Total, also highlighted the challenges posed by the ISC.

He said, “Both taxes come into force in January 2025, which in the case of the selective tax will be very difficult or impossible to comply with because, as the regulation says, the obligation arises at the moment the bet is made (debit from the user account). In order to transfer it to the player, the technological platform must be modified, re-certified in a laboratory, and re-approved before Mincetur, which will take between 8 and 12 months.”

He further warned that until these changes are made, the ISC might become “confiscatory.” Pérez added, “There are going to be complex weeks for the industry, but the technical arguments support us. We hope for common sense on the part of the government so as not to affect the expected revenue.”

Andrea Rossi, Betsson’s Commercial Director for Southern Europe and Latin America, also echoed these concerns. He said, “This tax reflects a poor understanding of the industry. Furthermore, there is a lack of consideration for the impact it will have on the successful channelling of players into the regulated market. It is essential that the implications this has for the development of the market are recognised.”

The reforms, which also regulate online sports betting and casino gaming, came into force on January 20, marking a new phase for the gambling industry in Peru.

Stay in the loop and join the biggest iGaming Community in the world with SiGMA’s Top 10 news countdown. Subscribe HERE for weekly updates from the world’s iGaming authority and exclusive subscriber-only offers. 

Recommended for you