Peru agrees on final tax plan to launch online gambling regime
Peru has moved forward on plans to launch a regulated online gambling regime, following Congress’ endorsement of the final policy requirements of Bill-2070/2021.
On Friday 15 July, Congress saw lawmakers settle on the final tax arrangements of the bill that will “regulate the exploitation of sports betting and remote games, creating a tax benefit for the government”.
The passage of Peru’s online gambling bill was fast-tracked during May, as the Ministry of Finance approved a policy decree submitted by SIP Liberal Conservative Diana Gonzales that called for the government to establish an online sports betting regime to re-galvanise Peru’s dwindling national sports fund.
Final settlements voted on by Congress saw lawmakers unanimously back the online gambling bill’s tax framework, which will impose a direct 10% tax on GGR across online sports and casino wagers.
A further 2% net tax will be collected by the Ministry of Foreign Trade and Tourism (MINCETUR) – the department sanctioned to serve as the regulatory agency for Peruvian gambling.
The tax outcome is below the 20% GGR tax rate that Diana Gonzales had proposed in May and will impose no ‘consumption tax’ on players as supported by several ministers.
Roberto Sanchez, the Secretary of MINCETUR, outlined his support for the bill’s finalised tax arrangements, in which the Tourism Ministry anticipates generating the Peruvian government 160m Soles ($40m) in new taxes generated.
Prior to Friday’s vote, MINCETUR had made a market assessment that unlicensed operators “had taken more than $1 billion in bets from Peru, without paying any form of taxes”.
Further responsibilities will see MINCETUR serve the distributor of online gambling’s taxed income to Peruvian departments and the market monitor for safer gambling advertising.
MINCETUR stated that initial funds will be distributed for investments in Peru’s tourism infrastructure and national sports bodies, who had suffered the biggest cuts in funding due to the COVID-19 pandemic.
Following Congressional approval, the office of President Pedro Castillo has been granted a 60-day period to review and sign the gambling bill into Peruvian law.