Peru Proposes Raising Online Betting Consumption Tax From 1% to 5%
Peru.- 9 October 2026 | www.zonadeazar.com Peruvian lawmaker Luis Masco Cáceres has introduced a bill proposing to increase the Selective Consumption Tax, ISC, on remote gaming and online sports betting from 1% to 5%.
The initiative is intended to increase tax revenue while also supporting policies aimed at preventing problem gambling and protecting younger audiences.
Current 1% Rate
Peru’s current framework applies a 1% ISC rate to both remote gaming and online sports betting.
The bill would increase that rate fivefold to 5%.
Tax Base Would Remain Unchanged
The proposal does not change the existing tax base.
ISC would continue to be calculated on the value of each wager, preserving the current mechanism used to determine taxable activity.
Foreign Platforms Also Covered
The bill maintains existing rules used to determine when gambling activity offered by foreign platforms is considered to have taken place or been consumed in Peru.
Current declaration and payment mechanisms would also remain in place.
Revenue Could Reach PEN1.62 Billion
The explanatory memorandum estimates that the existing 1% rate generates approximately PEN324 million per year.
At 5%, annual revenue could increase to around PEN1.62 billion.
The estimate broadly assumes that the underlying taxable base remains stable.
Extrafiscal Purpose
The proposal argues that ISC does not serve only a revenue-raising purpose.
It can also be used as an extrafiscal instrument where consumption generates broader social or economic externalities.
Problem Gambling Prevention
Masco Cáceres argues that a higher tax burden could complement policies designed to prevent gambling-related harm.
The proposal specifically highlights:
- Addiction prevention.
- Protection of teenagers.
- Protection of young adults.
- Greater enforcement.
- Monitoring the growth of online betting.
Not a Gambling Ban
The bill states that increasing ISC is not intended to operate as a prohibition of online gambling.
Its stated aim is to introduce an additional fiscal tool within Peru’s existing regulatory framework.
Growth of Digital Access
The explanatory memorandum highlights the rapid expansion of access to gambling through internet-connected devices.
The lawmaker argues that this increased accessibility requires additional preventive and supervisory measures.
MEF and SUNAT Would Implement Changes
If approved, the Executive would be required to make the necessary regulatory and administrative changes.
The Ministry of Economy and Finance and SUNAT would be responsible for adapting collection mechanisms.
Potential Impact on Operators and Players
Moving from 1% to 5% would represent a significant change in the economics of Peru’s regulated online gambling market.
The final impact would depend on how operators absorb the higher tax and whether some of the additional cost is reflected in odds, promotions, pricing or margins.
Next Steps or Impact
The bill must now move through the legislative process before it can become law.
If approved, Peru would impose a substantially higher consumption tax on online betting, with the stated aim of combining additional public revenue with stronger problem-gambling prevention.
The debate is likely to centre on the balance between public-health objectives, regulated-market competitiveness and the risk of customers migrating to unlicensed operators.
Editó: @fonta
