A new bill in Peru would raise the selective consumption tax (ISC) on online betting from 1% to 5% of every wager, creating a significant new cost for operators and potentially bettors.
The proposal applies only to online bets, leaving land-based gambling outside the increase. It would sit alongside Peru’s existing 12% gaming tax on gross gaming revenue generated by remote gaming and sports betting operators.
If approved, the new rate would take effect on the first day of the month after the law is published in the official gazette, El Peruano.
Proposed Tax Increase Adds To Peru’s Existing Gambling Duties
Peru launched its regulated online gambling market in February 2024 and attracted international operators including Stake, Rush Street Interactive and Betsson.
The current 1% ISC has applied since July 2025, but the tax was removed before the regulated market opened and later reintroduced. Industry lawyers warned that a higher rate could damage market viability.
This proposed 5% rate would apply regardless of whether an operator is incorporated in Peru or abroad.
Government Cites Gambling Harm And Revenue Objectives
The bill says the increase is partly motivated by the growth of digital betting and concerns around addiction and youth protection.
“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,” it states.
Generated tax will support a wider policy covering prevention, regulation, oversight and treatment rather than acting as a standalone solution to gambling addiction. Also, the bill identifies a “revenue-generating purpose” and says the intention is not to prohibit online betting.
Peru Estimates Annual ISC Revenue Could Reach S/1.62bn
At the current 1% rate, the ISC generates approximately S/324 million ($94.1m) annually. A 5% rate could increase that figure to S/1.62bn, although the bill describes the estimate as a “static, illustrative scenario”.
The proposal compares Peru’s rate with other Latin American markets. Argentina applies indirect taxes of between 2.5% and 15% to online betting, while Colombia charges 16% VAT on gross gaming revenue. It argues that a 5% rate “does not, in itself, constitute an extraordinary rate within the regional context”.
Furthermore, the new bill recognises that operators may absorb the increase, pass some or all of the cost to bettors through revised terms, or share the burden. In Colombia, some operators have used bonuses to offset the impact of additional taxation on customers.
Peru’s latest bill could alter the economics of its relatively young legal market with its propositions. The government’s public health argument may support the measure politically, but the effect will depend on how operators respond and whether customers opt for unlicensed alternatives.
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