In a significant move to address legislative stagnation, Peru’s Congress has advanced a revised proposal concerning Bill 9645, aimed at regulating remote gaming and sports betting. This comes after a period of inactivity following the government’s decision to review the previously approved bill intended to resolve discrepancies in the Impuesto Selectivo al Consumo (ISC) for online gaming.
The revised legislative text focuses on amending tax asymmetries, clarifying regulatory responsibilities, and establishing a coherent fiscal framework for the burgeoning online gaming sector. The proposal’s central feature introduces a flexible structure for the ISC applicable to online gaming and remote sports betting. It empowers the Ministry of Economy and Finance (MEF) to adjust the ISC rates within a specified range of 0.3% to 7%. This range respects a 2001 Constitutional Court ruling that imposed a 20% cap to prevent tax measures from being excessively burdensome. Legislators argue that maintaining a 7% ceiling aligns with this legal precedent.
Furthermore, the proposal suggests an immediate increase in the ISC from 1% to 3% upon the law’s enactment. Proponents believe this adjustment addresses current distortions without discouraging investment or formalization in the industry. The reform also seeks to equalize the tax responsibilities for both local and foreign operators. At present, Peruvian players face the ISC when engaging with foreign platforms, while local companies pay the tax directly. Lawmakers, including Congresswoman Lady Camones, emphasize that this discrepancy creates unfair competition and skews the market environment. The new text proposes removing this inequity by making all operators, regardless of origin, subject to the tax.
This change involves repealing subsection e) of Article 53 from the IGV and ISC Law, creating a uniform application of the tax and reinforcing tax neutrality. The revised text omits previously included provisions related to sports result manipulation, as these have been covered by earlier legislation advocated by Congresswoman Diana Gonzales. By focusing solely on taxation and regulatory clarity, the replacement text eliminates redundancies, ensuring legal coherence.
The proposal also enhances participation and strengthens regulatory oversight within the industry. Amendments to Articles 6 and 9 of Law 31.557 allow sole proprietors to engage in the sector, broadening the range of potential operators and service providers. Moreover, the bill consolidates the role of the Ministry of Foreign Trade and Tourism (Mincetur) in implementation, consumer protection, and the seizure of unauthorized terminals. This bolstered oversight is crucial in a sector where illicit activities remain a significant challenge.
Peru’s legislative effort signifies a step toward modernizing and harmonizing the tax and regulatory environment for online gambling and sports betting. Lawmakers aim for consistency, fiscal integrity, and equality between foreign and domestic operators, setting the stage for sustainable and transparent growth in this rapidly expanding digital industry. As Congress prepares to debate the proposal, the outcomes will likely shape not only remote gaming taxation but also the broader regulatory strategy for one of Peru’s fastest-growing sectors.
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