Peru’s online betting industry is preparing a constitutional challenge against the Selective Consumption Tax on remote gaming and sports betting. The action follows approval of 5,000 signatures needed to file a citizen-led case with the Constitutional Court.
The National Jury of Elections validated the signatures linked to the case against Legislative Decree No. 1644. The decree set the tax rate for the online betting levy under Peru’s gaming law.
Tax applies to each wager
Peru applies a 1% Selective Consumption Tax to online gaming and sports bets. The rate took effect on July 1, 2025 after a temporary 0.3% rate in the first half of the year.
The tax is charged on every wager rather than gross gaming revenue. It applies before prizes, payouts and operating costs are deducted.
Peru also applies a 12% gaming tax to online betting and remote gaming. The combined taxes increase costs for licensed operators.
Challenge focuses on decree
The case targets Legislative Decree No. 1644, issued in September 2024. It set a 1% tax rate for online betting and remote gaming.
The legal challenge questions whether the decree meets Peru’s constitutional tax rules. The main issue is whether the law properly defined the tax before the executive branch set the rate and collection system. The industry also argues that the tax affects operators differently. Companies with lower margins may face more pressure because the levy is based on every wager, not net betting revenue.
Foreign platforms must collect tax
The rules cover local operators and foreign platforms serving users in Peru. For overseas companies, the player is treated as the taxpayer and the platform must collect the tax when the bet is placed. Authorities can identify players in Peru through IP addresses, SIM cards, payment cards, digital wallets and registered addresses. Foreign operators must register and file tax reports with Peru’s tax authority.
Congress also reviews rules
Peru’s Congress is discussing changes to the tax rules for online betting and remote gaming. The debate follows industry concerns that the system could affect investment and push users toward unlicensed websites. The court case could change the 1% tax rate and how Peru collects it from online betting platforms.
