Peru Imposes Extra 1% Tax on Online Gambling

Picture your favorite online casino suddenly costing you more.
Peru’s government just approved a bold 1% excise tax on all Peru online gambling tax transactions.
Imagine a market where SUNAT clamps down on both licensed and offshore operators, ensuring fair play and compliance.
Stay informed, embrace the changes, and prepare for a redefined Peruvian gambling market starting January 2025.

Starting 2025, Peru adds a 1% excise tax on all online gambling transactions. Both licensed and offshore operators face stricter costs.

3 Key Points:

1. Peru imposes an additional 1% excise tax on all online gambling transactions from January 2025.
2. Both licensed and offshore operators must comply, facing stricter Bill-2070/2021 guidelines.
3. MINCETUR tracks online activities, while licensing fees jump to 3m sols to boost market integrity.

Peru has taken a decisive step to reshape its Peruvian gambling market. Starting January 1, 2025, the nation will impose an additional 1% excise tax on all online sports betting and online casino gaming transactions. This new levy complements the existing 10% tax on gross gaming revenues (GGR) introduced under Bill-2070/2021. Moreover, it applies to both licensed and offshore operators, creating a level playing field that challenges longstanding loopholes.

This move comes after SUNAT, Peru’s national tax authority, approved President Dina Boluarte’s proposal. Initially, there were questions about how to enforce the tax against offshore entities. However, technical evaluations confirmed that transactions initiated from within the country can be subject to this additional duty. As a result, the government can now extend its regulatory reach to operators beyond national borders, strengthening oversight across the board.

Meanwhile, the Ministry of Foreign Trade and Tourism (MINCETUR) will closely monitor transactions. They will focus on digital footprints, including Peruvian IP addresses, bank accounts, credit cards, and local SIM cards. By doing so, MINCETUR ensures that every taxable event is captured, reducing tax evasion. These measures enhance transparency and safeguard government revenue, ultimately benefiting public welfare programs and national development.

Although some operators may find these changes stringent, the reforms reflect Peru’s ongoing commitment to regulate its gambling sector. The nation recently embraced Philippine-inspired reforms and observed global best practices. As the industry evolves, these standards help build trust among players and investors. Therefore, while some may gripe about increased taxes, others will appreciate the heightened credibility that the market gains as a result.

Another significant development involves licensing costs. MINCETUR will raise the price of online gambling licenses to 3 million sols (approximately €750,000). This substantial increase in licensing fees aims to deter non-compliant operators and ensure that only serious, well-funded companies remain. Consequently, smaller operators may struggle to enter or stay in the market, possibly leading to industry consolidation over time.

Yet, not all voices are singing praises. Some critics argue that these reforms could stifle innovation and competition. They warn that higher licensing fees and heavier taxes might push operators underground or force them to abandon the Peruvian market. Even so, the government seems confident that the long-term benefits of stability, transparency, and enhanced consumer protection outweigh such risks.

In fact, Peru’s approach echoes a larger global trend. Countries worldwide seek to manage online gambling more effectively, balancing revenue generation with responsible gaming. By setting strict rules, Peru joins a growing club of nations that prioritize fair taxation, market integrity, and consumer safety. This stance positions the country as a credible partner for international businesses that value regulated environments.

Going forward, operators must adapt quickly. They must ensure robust compliance systems, develop strategies for pricing and marketing, and engage constructively with regulators. Meanwhile, players may see slightly higher costs, yet they gain the assurance of a more secure and regulated marketplace. Over time, the reforms could attract more reputable providers and create a thriving environment for all stakeholders.

By embracing an additional 1% excise tax and tightening licensing requirements, Peru signals a new chapter in its Peruvian gambling market. These reforms align with global regulatory trends, ensuring a stable, transparent environment for players, operators, and investors alike. As the 2025 deadline approaches, the industry must rise to the challenge, embracing the changes that promise a fairer, more secure, and responsibly governed online gambling landscape.