Peru Considers Massive Tax Hike on Online Gambling to Five Percent

A fiscal storm is brewing for the online gambling industry in Peru. Congressman Luis Aurelio Masco Cáceres from Arequipa has officially submitted Legislative Proposal 00519-2026-2031-CD, which calls for a drastic increase in the Selective Consumption Tax (ISC). Instead of the currently applicable 1 percent, operators of remote gambling and sports betting would be required to pay 5 percent on the value of every taxable bet. This move comes at a time when the industry in South America is already under increased scrutiny.

Supported by members of the Partido Cívico Obras, the initiative justifies the necessity of the increase by citing the rapid expansion of gambling through smartphones and other connected devices. The bill's authors argue that additional funds are urgently needed to support problem gambling prevention and strengthen protections for adolescents and young people. Should the law be approved, the higher tax rate would apply starting from the first day of the calendar month following its entry into force, leaving operators little time to adjust.

Numbers and facts

The economic implications of this proposal are massive. The authors estimate that annual ISC receipts could rise from the current Sol (S/) 324 million (approximately €84 million) to S/ 1.62 billion (€420 million). This represents an increase of S/ 1.296 billion, or about €336 million at current exchange rates. However, these projections depend heavily on actual implementation and future betting activity among Peruvians. It is important to distinguish between tax types: the ISC is a consumption tax levied on the value of each bet. It exists alongside the separate remote gambling and sports betting tax established under Law 31557.

According to Sunat guidelines, the separate operator tax is charged at 12 percent of its monthly taxable base. This base is calculated after deductions for winnings, refunds, and an allowance for platform maintenance. Since the two taxes have different bases, the percentages cannot simply be added together. Nevertheless, the planned ISC increase represents a significant additional burden, as it applies directly to the betting stake. The tax obligation arises the moment funds or cash-valued bonuses are debited for a bet from the player's account.

Background

The fiscal framework for online gambling in Peru has a turbulent history. Under Dina Boluarte’s administration, regulations published in December 2024 mandated the ISC for both domestic and foreign authorized platforms. Initially, a temporary rate of just 0.3 percent was in effect until June 30, 2025. Since July 1, 2025, the standard rate of 1 percent has been applied. The current proposal signals a further tightening of the regime, only months after the last adjustment.

The role of payment facilitators is particularly interesting. If a non-resident provider fails to meet its tax obligations, Sunat can place them on a published blacklist. In such cases, Peruvian financial entities, such as the National Bank or electronic money issuers, must act as withholding agents.

„Cáceres’ proposal would apply the higher rate to the value of each taxable bet. It would retain the existing tax base, assessment and audit rules, including the legal criteria covering foreign platforms.“ - Luis Aurelio Masco Cáceres, Congressman

Why it matters for German players

For German players, the developments in Peru have no direct financial impact, as the German market is strictly isolated and regulated by the Interstate Treaty on Gambling 2021 (GlüStV 2021). However, the situation in Peru reflects a global trend: governments worldwide are recognizing the fiscal potential of the online sector. In Germany, the hurdles are already significantly higher. While Peru discusses a 5 percent stake tax, German players are already subject to strict limits, such as the €1,000 monthly deposit limit across all providers, monitored by the central LUGAS system.

Furthermore, Germany enforces a maximum stake limit of €1 per round for virtual slot machines. While Peruvian authorities attempt to collect from foreign platforms via payment facilitators, the Gemeinsame Glücksspielbehörde der Länder (GGL) in Germany relies on a strict whitelist. Only providers on this list are legally allowed to offer their services. German players should therefore always check if a casino holds a German license to be legally protected and benefit from high player protection standards.

What it means for GGL-licensed casinos

Casinos with a GGL license operate in one of the most heavily regulated markets in the world. The debate in Peru serves as a reminder that fiscal stability is a rare commodity. GGL-licensed operators in Germany are already required to pay a race betting and lottery tax of 5.3 percent on stakes. This rate is comparable to the level now demanded in Peru; however, the German system is much more transparent and secure for the treasury due to its link to technical monitoring systems like LUGAS and Safe. For operators, the development in Peru means that even in supposedly more liberal markets, the tax screw can be tightened at any time, emphasizing the value of a stable, albeit expensive, German license.