Peru to Modify Law on Sports Betting Taxes to Include International Companies

In October 2023, the Ministry of Foreign Trade and Tourism (Mincetur) enacted regulations for Law N.° 31557, establishing a tax on online sports betting. Starting in April 2024, approximately 50 companies providing these services in Peru began contributing 12% of their net profits to the state.

The initial legislation included a tax obligation for non-resident (foreign) companies, but the specific procedure for this was not detailed. Addressing this ambiguity, José Arista, the Minister of Economy and Finance, announced the government’s intention to modify the existing sports betting legislation. The goal is to include international betting companies operating within the national territory in the tax regime, ensuring they also contribute taxes.

Minister of Economy’s Remarks on Sports Betting Taxes

During a session requesting a vote of confidence for the Adrianzén Cabinet, the MEF minister discussed the change in the law regarding taxes on international sports betting companies.

“The Executive will propose a rule to modify Law 31557 to regulate various aspects of the application and collection of taxes on remote games and sports betting,” he stated.

José Arista argued that requiring international sports betting companies to pay taxes is a matter of fairness. He highlighted the difference in tax treatment between in-person gambling, which is subject to taxation, and remote gambling, which has not been subject to the same tax requirements until now.

State Anticipates Millions in Tax Revenue

The Ministry of Foreign Trade and Tourism estimates that this regulation will generate approximately S/162 million annually. This revenue will be allocated to various purposes, including the reactivation of the tourism sector, the development of tourism infrastructure, the promotion of sports activities, and support for mental health programs.

Popular Sports Betting Platforms in Peru

Some of the most popular sports betting platforms in Peru include:

1. Betsson: Known for its wide range of betting options across various sports, this platform is a favorite among betting enthusiasts in the country.
2. Inkabet: This Peruvian betting house offers a great variety of markets and is very popular among local bettors.
3. Betsafe: Part of the same group as Betsson, Betsafe also enjoys great popularity in Peru thanks to its reliability and extensive betting offerings.
4. Sportingbet: With a strong presence in the Latin American market, Sportingbet is a preferred option for many Peruvians due to its variety of sports and events.
5. 1xBet: Despite being an international brand, 1xBet has gained popularity in Peru for its high odds and extensive coverage of sporting events.