The Selective Consumption Tax (ISC) on online gaming and sports betting in Peru will be 0.3% until July of this year.

Peruvian President Dina Boularte and the Minister of Economy and Finance, José Arista Arbildo signed a decree to establish the new rate, as reported in the Official Gazette on 19 January.

The announcement responds to the regulations published in December on the tax that will be applied to the industry. In this way, it establishes a lower figure than the one originally proposed, 1%, which will only begin to apply from 1 July.

The decree states that “it has been considered appropriate to modify the New Appendix IV” in order to increase the tax burden progressively. The new regulations came into force on 20 January.

The reaction of the online gaming sector in Peru

In December, the CEO and Partner of Apuesta Total, Gonzalo Pérez, spoke out on his social platforms against the regulations due to the technical requirements it entails.

He warned: “Both taxes come into force in January 2025, which in the case of selective tax will be very difficult or impossible to comply with because, as the regulation says, the obligation arises at the moment the bet is made (debit from the user account) and in order to transfer it to the player, the technological platform must be modified, re-certified in a laboratory and re-approved before Mincetur (the regulator), which will take between 8 and 12 months.”

“In the meantime, the ISC could not be transferred and would become confiscatory,” warned Pérez.

In any case, the executive highlighted the particular requirement of the industry to operate under certification from an officially licensed laboratory, and stated: “There are going to be complex weeks for the industry, but the technical arguments support us. We hope for common sense on the part of the government so as not to affect the expected revenue.”

Andrea Rossi, Betsson’s Commercial Director for Southern Europe and Latin America, echoed his reaction. He added: “This tax reflects a poor understanding of the industry. Furthermore, there is a lack of consideration for the impact it will have on the successful channelling of players into the regulated market. It is essential that the implications this has for the development of the market are recognised.”

Source