Zona de Azar Peru – Peru: Sports Betting and e-Sports Tax Officially Approved

Peru.- November 20, 2024 www.zonadeazar.com The National Superintendency of Customs and Tax Administration (Sunat) has announced the implementation of a tax on sports betting and e-sports platforms in Peru, aiming to generate additional revenue for the state through a new regulatory framework.

Víctor Mejía, head of Sunat, explained that the regulation covers both local and international platforms, which previously operated without an established tax scheme.

Under this new provision, online betting, including wagers on competitive video games, will be subject to specific taxes. According to Sunat’s projections, the implementation of this tax is expected to generate approximately S/70 million (US$18.5 million) in its first year, significantly contributing to Peru’s public resources.

Sunat will publish the final guidelines for the new tax payments in December 2024, allowing stakeholders to provide feedback. This initiative is part of a broader effort to formalize sectors that have seen rapid growth due to technological expansion and is set to take effect in April 2025.

Víctor Mejía noted that five major local companies account for 80% of online sports betting in Peru, while 12 additional international platforms will also fall under the new tax framework. Tax oversight will gradually expand to cover all operational platforms in the country, establishing an inclusive tax system.

This tax will ensure that these platforms contribute to the public budget through regular tax payments, closing a significant fiscal gap. Additionally, Sunat anticipates that the sector’s growth will further increase tax revenues in the coming years, especially as larger international platforms enter the regulated market.

Selective Consumption Tax (ISC) to Apply to Sports Betting

The ISC is a tax designed to regulate products or services that may create negative externalities, with its primary goal being to discourage excessive betting and mitigate potential social issues associated with compulsive gambling.

According to the regulation, sports betting and e-sports will not be subject to the General Sales Tax (IGV) but will fall under the ISC. Sunat stated that this approach addresses the social and economic risks associated with these activities more effectively. As this is a fast-growing sector, the fiscal regulation aims to balance promoting economic activity with protecting consumers.

Although digital betting platforms are exempt from the IGV, their inclusion under the ISC reflects the government’s strategic approach to addressing different segments of the tech market. Together, these measures will enable more efficient control over digital services and strengthen fiscal revenue.

Edited by: @_fonta
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