Robust Tax Revenues and Market Growth
Since the enactment of Law No. 31,557 in February 2024, Peru’s online gambling sector has experienced notable growth. The Ministry of Foreign Trade and Tourism (MINCETUR) projects that the regulated market will generate approximately S/162 million (around $43 million USD) annually in tax revenue. These funds are earmarked for investments in tourism, sports, and mental health programs, reflecting the government’s commitment to leveraging gambling revenues for public benefit.
The market’s expansion is further evidenced by the substantial interest from operators. By March 2024, MINCETUR had received 145 license applications, including submissions from prominent international companies such as Betsson, Rush Street Interactive, and Stake.
Enhanced Regulatory Framework and Compliance Measures
The regulatory landscape has undergone significant changes to ensure fairness and transparency. Key reforms include:
Increased Licensing Fees: The cost for online gambling licenses has tripled to S/2.97 million (approximately $814,000 USD), aiming to ensure that only serious operators enter the market.
Point-of-Consumption Tax: A 12% tax on gross gaming revenue has been implemented, applicable to both domestic and foreign operators, ensuring a level playing field.
Mandatory KYC Procedures: Operators are now required to implement stringent Know Your Customer protocols, including verifying the identity, age, and nationality of players, to prevent underage gambling and enhance security.
Domain Restrictions: All online gambling platforms must operate under Peruvian domain addresses (.bet.pe, .bet, .com.pe, .pe), reinforcing the jurisdiction’s control over the market.
Introduction of Selective Consumption Tax and Industry Response
In January 2025, the government introduced a Selective Consumption Tax (ISC) on online gaming and sports betting, initially set at 0.3% and scheduled to increase to 1% by July 1, 2025. This tax applies to transactions conducted by Peruvian residents using local IP addresses, bank accounts, credit cards, or SIM cards.
While the ISC aims to boost tax revenues, industry stakeholders have raised concerns about its implementation. Operators argue that the tax’s structure could lead to double taxation, as it is levied on each bet in addition to the existing 12% gross gaming revenue tax. Gonzalo Pérez, CEO of Apuesta Total, highlighted the technical challenges in adapting platforms to accommodate the new tax, estimating that necessary modifications and recertifications could take up to eight months.
Legal experts have also questioned the ISC’s applicability, citing potential legal inconsistencies and a lack of clarity in the regulation. Tax lawyer Luis Durán Rojo pointed out that the law does not adequately define the taxable base, which could render the tax inapplicable and lead to constitutional challenges.
Conclusion
Peru’s comprehensive reforms in the online gambling sector have positioned the country as a leading regulated market in Latin America. The government’s proactive approach has not only increased tax revenues but also enhanced market integrity and consumer protection. However, the introduction of the Selective Consumption Tax presents new challenges that require careful consideration to maintain the market’s growth trajectory and prevent a shift towards unregulated operators.
