RushBet: Peru’s betting tax could hurt market ambitions

Aside from Brazil, there is another newly-regulated Latin American gambling market that has caused quite the stir with the direction it has chosen for its gambling framework.

This is of course Peru, a slightly older market than Brazil, and one where operators have become anxious after the government announced a new Selective Consumption Tax (ISC) on online gaming and sports betting, which will reach the 1% mark after July of this year. 

The local industry has expressed concerns about potential compliance and technical challenges that will affect the regulated market’s stability and attractiveness for players. To hear industry views first  hand, SBC News sat down with Cristhian Cardenas, Compliance Director at RushBet and a speaker at this year’s SBC Summit Americas. 

Cardenas argues that a lack of government flexibility can result in a ‘discouraging’ environment that inadvertently puts regional licence holders at a disadvantage against the black market. 

SBC News: How would you describe the Peruvian gambling sector in one word, and why?

Cristhian Cardenas: The Peruvian market has demonstrated a remarkable ability to adapt. Both long-established operators and new licensees have swiftly complied with the requirements introduced by Law No. 31557 and its regulation. This compliance has gone beyond technical matters to include the responsible promotion of remote gambling as a legitimate form of entertainment that contributes to the country’s economic development.

Peru’s regulator is welcoming of new betting licence holders, but has also introduced a tax to discourage ‘negative products’ – is this making life harder for licence holders?

Yes, significantly. Firstly, the tax affects formal users who choose to gamble on regulated platforms, creating a negative perception of legal gambling. It also applies to the total amount wagered, regardless of whether the player wins or loses. This is problematic because bets are placed with “recycled” or “virtual” money through what we call turn-over, meaning the same deposited funds are wagered multiple times. This distorts the tax base and increases operational costs. Additionally, it discourages investment in technological development and innovation, further burdening licensed operators and placing them at a disadvantage against unregulated competitors.

The Peruvian government is taking tough measures against licenced operators, do you think this is being mirrored in its efforts against the black market?

Not to the same extent. While licensed operators are subject to increasing demands in compliance, taxation, and technology, enforcement against illegal operators remains limited. This imbalance creates unfair competition that seriously jeopardises the sustainability of the regulated sector. Stronger supervision and exemplary sanctions are urgently needed to protect the legal market.

Let’s say I’m an igaming consumer in Peru. The ISC tax at the moment is 0.3%. Could you tell us what this means for me as an end-consumer now, and what changes I will see once the tax goes to 1%?

Currently, the consumer pays an additional 0.3% for each bet placed. If this tax increases to 1%, that cost will more than triple, which will reduce the perceived value of the entertainment experience and likely encourage users to migrate to unregulated platforms where this tax does not apply. Furthermore, as the tax is applied to recycled money (turn-over), the impact also extends to operators’ margins, creating an economically unsustainable environment.

In what way can the taxation regime in Peru be changed to make it more hospitable for operators?

The tax system must evolve into a proportional, technically sound, and sustainable model that does not penalise legitimate consumption or formal operators. It should encourage formalisation, foster investment in innovation and responsible gaming, and remain competitive with other regulated markets in the region. A smarter fiscal design would drive growth and ensure the long-term viability of the sector.

In your view, what are the ideal steps the Peruvian government should take to encourage positive development of the country’s betting market?

The first step is a strong crackdown on illegal gambling—sanctioning unlicensed providers and operators and channeling those resources back into the system. These efforts must be supported by public awareness campaigns that educate users about the risks of illegal platforms. Furthermore, regulators and operators must work hand in hand to promote responsible gaming and position the sector as a safe, transparent, and professional entertainment option.

A lot of international attention is on Brazil right now. How do Peru’s market development prospects compare with those of Brazil?

We can assess the situation from a strategic standpoint. Brazil garners significant attention due to its size and recent steps toward regulation. However, it is still in an early stage of implementation. Peru, on the other hand, already has a functioning legal framework, which offers an advantage in terms of predictability and regulatory maturity. If Peru can optimise its tax policies and intensify its fight against illegal gambling, it can emerge as a mature, stable, and attractive market for investors.

What are the ideal regulatory and market conditions to encourage investor interest in Peru’s betting space?

First and foremost, legal certainty—a clear, consistent, and competitive regulatory framework. Taxation must be reasonable and aligned with the realities of the digital gambling business. Regulatory efforts should prioritise the fight against illegal operators. It’s also essential to move away from the stigmatisation of the industry and instead promote responsible gaming and the sector’s role in entertainment and economic growth.

Tell us a few words about why you decided to attend SBC Summit Americas, and which panels you will be making sure to visit. 

SBC Summit Americas is the ideal forum to learn about the latest trends and challenges in the regional industry from operational, commercial, and regulatory perspectives. It offers a comprehensive view of how each market in the region is evolving. I’m particularly interested in attending panels on player protection, regulatory developments, and the future of the iGaming industry in Latin America.

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