Peru’s online gambling industry could face a substantial increase in its tax obligations under a legislative proposal that would raise the Selective Consumption Tax (ISC) on remote betting from 1% to 5% of each wager. Filed in Congress on October 6, 2026, the initiative cites public health concerns and the potential for higher government revenue as the main reasons for the proposed change.
Legislative Proposal 00519-2026-2031-CD was introduced by Arequipa lawmaker Luis Aurelio Masco Cáceres and other members of the Partido Cívico Obras. The measure remains at the “Presented” stage in Congress and has not entered into force.
If approved, the bill would increase the tax rate fivefold while retaining the value of each wager as the taxable base. Its scope would remain limited to online gambling, leaving land-based betting and casino operations outside the proposed increase. The ISC would also continue to apply regardless of whether an operator is incorporated in Peru or another jurisdiction.
The proposal would operate alongside Peru‘s existing 12% tax on the monthly taxable base of remote gaming and sports betting operators, established under Law 31557. The two levies use different tax bases and serve as separate obligations for businesses in the regulated market, according to Zona de Azar.
Congress Considers Higher Levy on Remote Wagers
The proposed reform would amend section A of the New Appendix IV of the Consolidated Text of Peru’s IGV and ISC Law. The current 1% ISC on each online wager took effect on July 1, 2025, under Supreme Decree 008-2025-EF.
Peru introduced its regulated online gambling framework in February 2024, attracting international operators including SkillOnNet, Stake, Rush Street Interactive and Betsson. However, the implementation of the consumption tax has added pressure to a market that had initially developed without the levy.
Plans to introduce the consumption tax had been abandoned before the regulated market launched. Authorities reconsidered the measure in 2024, and its eventual implementation in July 2025 prompted concerns about the industry’s financial sustainability. One lawyer warned iGB that the tax’s impact would be “catastrophic” for the market’s viability.
The new proposal would increase the rate further, making the financial implications for licensed operators a central issue in the legislative debate. The bill acknowledges that companies could respond to the higher charge in different ways. They could absorb the additional expense, transfer some or all of it to customers through revised betting conditions, or divide the cost between operators and bettors.
Experiences elsewhere in Latin America offer examples of how businesses may respond to additional gambling taxes. In Colombia, some operators have used player bonuses to offset the effects of the country’s VAT on online gambling. Whether Peruvian operators would adopt comparable measures remains uncertain.
Public Health Concerns Feature in the Bill
The proposal presents the tax increase as one element of a wider response to the risks associated with online gambling. Its explanatory memorandum points to the expansion of digital betting and the need to protect vulnerable groups, particularly young people.
“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,” the bill stated.
The document argues that a higher tax could complement public health policies by increasing the fiscal cost associated with gambling activity. It also recognizes that taxation alone cannot address gambling-related harm.
“The measure can contribute to a comprehensive policy for preventing problem gambling by increasing the specific tax burden on the activity. The expected benefit is not to position the tax as a solution to gambling addiction, but rather to incorporate an additional fiscal instrument into a broader set of measures covering prevention, regulation, oversight and care.”
Revenue collection represents the proposal’s other principal objective. The bill describes the ISC as having a “revenue-generating purpose” while maintaining that the intention is to keep online betting within Peru’s authorized regulatory framework.
“Instead, it seeks to moderately raise the tax burden associated with the activity within a market that remains subject to authorisation and regulation,” the bill continued. “The measure is conceived as a complementary prevention tool rather than a sole response to problem gambling.”
The explanatory memorandum estimates that the existing 1% ISC produces approximately PEN324 million annually. Increasing the rate to 5% could lift yearly receipts to PEN1.62 billion, representing an additional PEN1.296 billion compared with the current estimate.
The document qualifies these projections as a “static, illustrative scenario”. The figures therefore represent an estimate based on the stated assumptions rather than a guaranteed outcome following a potential tax increase.
Regional Tax Comparisons and Regulatory Responsibilities
To support its case, the bill refers to other Latin American jurisdictions that impose additional taxes on online gambling. Argentina applies an indirect tax on online betting at rates ranging from 2.5% to 15%, while Colombia imposes a 16% VAT on gross gaming revenue (GGR) for online operators.
Based on these examples, the Peruvian proposal argues that a 5% levy on individual wagers would fall within the range of additional fiscal measures used elsewhere in the region. The comparison does not remove the distinction between the countries’ tax structures, since their respective levies can apply to different taxable bases.
The proposed changes would involve several public institutions if Congress approves the bill. The Ministry of Foreign Trade and Tourism (MINCETUR) oversees gambling regulation, while the National Superintendency of Customs and Tax Administration (SUNAT) handles tax collection. The Ministry of Economy and Finance would also need to participate in the relevant regulatory adjustments.
Enforcement against unauthorized gambling platforms remains another part of the regulatory picture. On July 21, 2026, MINCETUR blocked 36 unauthorized platforms in coordination with the Ministry of Transport and Communications, according to the information accompanying the legislative proposal.
The bill would therefore add a potential tax change to Peru’s existing framework for licensing, taxation and enforcement. Its next step depends on congressional consideration, and the proposed 5% rate will remain inactive unless the measure completes the legislative process.
Under the bill’s proposed implementation schedule, the law would take effect the day after publication in El Peruano, Peru’s official daily newspaper. The new ISC rate would then apply from the first day of the following calendar month.