Peru's betting and remote gaming industry is preparing to challenge the constitutionality of the tax framework applied to licensed operators after the country's electoral authority certified the signatures required to bring a formal action before the Constitutional Tribunal.
The JNE issued a resolution confirming the validity of the 5,000 signatures required under Peruvian law to initiate an unconstitutionality action against Legislative Decree No. 1644, enacted during the administration of President Dina Boluarte. The decree introduced the Selective Consumption Tax (ISC) on sports betting and online gaming activity.
Under the current framework, sports betting and remote gaming operators are subject to a 12% gaming tax on their gross gaming revenue, plus a 1% ISC levied on the total amount staked. Industry representatives argue that the combined tax burden can reach around 50% of gross gaming revenue in certain scenarios. The sector has also argued that higher taxes may encourage consumers to use unlicensed offshore platforms.
Constitutional and tax law specialists have questioned the legal standing of the decree, arguing the ISC, as applied, lacks essential structural elements required for a valid tax, rendering it both unlawful and unconstitutional.
A separate legislative proposal has been put forward in Congress to address those concerns and provide greater legal certainty for the sector. A failure to pass could mean accelerating the constitutional challenge.
The industry has pointed to a measurable contraction in Peru's regulated market since the tax took effect. Forty operators have withdrawn from the country and 1,500 retail points of sale have shut down between 2025 and 2026. Sponsorship deals between betting companies and professional football clubs have also declined, falling from 18 clubs in 2024 to five in 2026.
Operators have also warned that a heavier fiscal burden pushes bettors toward unlicensed offshore platforms, which face no equivalent tax obligations and can offer more competitive odds and promotions as a result.
The Constitutional Tribunal previously ruled against tax provisions applied to casino games and slot machines in 2001, a decision that led to refund and compensation processes for affected operators. Industry representatives are now citing that ruling as a precedent for the current challenge.
Google recently updated its advertising policy for Peru, requiring lottery operators to obtain approval from the Ministry of Women and Vulnerable Populations (MIMP) before running ads on its platforms
