Peru Tightens Grip on Booming Online Sports Betting Market with Urgent Tax & Regulatory Changes
Lima, Peru – In a move poised to reshape one of Latin America’s fastest-growing digital industries, Peru’s Congress is set to debate a revised bill updating the regulatory framework for remote sports betting and online games. This breaking news comes as lawmakers aim to address gaps in the existing Law 31557 and ensure a fairer, more transparent market for both operators and players. The changes, driven by observations from the Executive Branch, are expected to have a significant impact on the sector, which currently moves over 4,500 million soles (approximately $1.2 billion USD) annually.
Tax Hike & Increased Government Oversight
The most significant alteration proposed is a substantial increase in the tax rate applicable to the online betting sector. Currently at 1%, the tax will immediately jump to 3%, with the Ministry of Economy and Finance (MEF) gaining the authority to adjust the Selective Consumption Tax (ISC) rate between 0.3% and 7%. This flexible band is designed to comply with Constitutional Court rulings, preventing excessively high taxes that could be deemed confiscatory. This is a critical development for SEO and Google News visibility, as tax policy changes are frequently searched terms.
Closing Loopholes & Leveling the Playing Field
The revised bill also tackles the issue of tax avoidance by foreign operators. Previously, Peruvian players often bore the burden of paying the ISC when using platforms based outside the country. The new legislation shifts this responsibility entirely to all companies – both national and foreign – operating within the Peruvian market. To achieve this, literal e) of article 53 of the TUO of the VAT and ISC is being repealed. This correction is a key step towards creating a level playing field and maximizing tax revenue.
Formalizing the “Winemakers” & Supporting Small Businesses
Beyond taxation, the reform aims to bring a significant number of informal betting businesses into the regulated economy. Amendments to articles 6 and 9 of Law 31557 will allow individuals operating small betting businesses – often referred to locally as “winemakers” – to participate legally within a defined framework. Sector estimates suggest this could bring over 500,000 individuals back into formal economic activity. Unions representing these small businesses have welcomed the changes, citing a need for “stability” and “clear rules” after a period of uncertainty.
Streamlining Regulations & Focusing on Core Issues
Recognizing the existence of a separate law specifically addressing the manipulation of sports results, the bill removes redundant sections related to this crime. This allows lawmakers to concentrate on refining the tax structure and regulatory aspects of online betting. This streamlining demonstrates a pragmatic approach to legislation, focusing on areas where reform is most urgently needed.
A Market “Developed Without Complete Regulation”
The impetus for these changes stems from a recognition that the online sports betting market in Peru has grown rapidly, particularly since the pandemic, but without a fully comprehensive regulatory structure. Members of Congress believe this reform will “organize a market that developed without complete regulation,” while the MEF emphasizes its role in “closing gaps that allowed some platforms to operate without paying taxes under equal conditions.”
The debate in plenary is expected to be lively, but the overall sentiment suggests a strong desire to modernize and formalize this dynamic sector. The outcome will define the future of online sports betting in Peru, impacting everything from tax revenue to consumer protection and the livelihoods of thousands of small business owners. This is a developing story, and Archyde will continue to provide updates as they become available. Stay informed with the latest breaking news and SEO-driven insights on our platform.
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