Peru debates adjustments to selective tax on betting
Peru reaches a critical point in the tax regulation of the online gambling sector. On June 23, the Congress of the Republic will address the bill that seeks to correct the application of the Selective Consumption Tax (ISC) for national and foreign iGaming platforms, a dispute that has pitted the Executive and Legislative branches against each other since mid-2025.
The initiative, originally approved in June 2025, was observed by the Government in July of that year. Now, Congress must decide whether to accept the presidential observation or insist on the bill to definitively approve it and compel President José María Balcázar to promulgate it. The project proposes to repeal provisions of Article 53 of the General Sales Tax (IGV) and ISC Law that establish selective rates and taxes on authorized sports betting and gaming platform operators.
The Government has argued that there is no regulatory vacuum in the regulation of the ISC and warns that the proposed changes would significantly reduce the tax base. According to official calculations, without a simultaneous recalibration of the ISC rate, the changes would result in a reduction of the tax burden between 90 and 95 percent, a figure that directly affects tax revenues.
Remote betting operators have expressed their determination to insist on the bill. However, if the initiative fails, they announced that they would proceed with an unconstitutionality action before the Constitutional Court. The National Elections Jury has already certified the validity of the 5,000 signatures required to initiate this process. Constitutionalists and tax experts have questioned legal aspects of the current application of the ISC, arguing that it lacks essential elements that make it illegal and unconstitutional.
The Peruvian situation reflects regulatory tensions across Latin America, where governments seek to increase tax revenues from the online gambling sector while operators demand more equitable tax frameworks. Peru currently applies a Gaming Tax of 12 percent plus an ISC of 1 percent on amounts wagered, a combination that operators consider unsustainable for reduced operating margins.
Tags: Peruvian selective consumption tax, Peruvian gambling regulation, Peru online gambling