“We hope the Selective Consumption Tax is revised to prevent the collapse of Peru’s online gaming industry”

Gonzalo Rosell, President of the Peruvian Association of Online Sports Betting and Related Activities (APADELA), spoke exclusively with Yogonet about the challenges faced by Peru’s online gaming sector in 2025, with particular emphasis on the application of the Selective Consumption Tax (ISC).

In this context, Rosell expressed his hope that the next Peruvian government, which will take office in July next year, will “develop a deeper understanding of the online gaming and sports betting industry” and, in turn, recognise “the harmful impact of the ISC” on the sector he represents.

What is APADELA’s assessment of 2025?

The year 2025 was extremely challenging for APADELA’s members, who are the most relevant formal operators active in the country. The tax burden resulting from the new taxes on online gaming and online sports betting, which came into force on 1 January 2025, had a significant impact on the sustainability of the industry.

In addition to the 12% Special Tax applied to Gross Gaming Win (GGW), calculated as gross sales minus prize payouts, the Selective Consumption Tax (ISC), which theoretically applies to the first line of the business—the amount of each bet—imposes an unsustainable tax burden. This situation is leading to the closure of formal operators and generating perverse incentives and competitive advantages that favour illegal operators, which do not comply with regulations, do not protect players, lack responsible gaming policies, and, moreover, do not pay taxes.

Which piece of news or industry development do you consider the most important of the year, and why?

The legislative initiatives aimed at modifying the taxable base of the ISC—so that it applies to Gross Gaming Win after deducting prize payments, aligning it with the base of the 12% Special Tax—were the most noteworthy development of the year in terms of pursuing the industry’s sustainability.

Additionally, the temporary reduction of the ISC rate from 1% to 0.3% between January and June helped to ease the negative impact of the tax. However, this relief was only temporary, and from July onwards, formal operators were once again severely constrained. We hope that the ISC rate will be reduced again to 0.3% until technological platforms are adapted to transfer the tax following the publication of the ISC’s technical standards.

What are APADELA’s expectations for 2026?

We hope that the ISC, as it is currently defined, will be corrected in order to prevent the disappearance of the formal online gaming and sports betting industry. We also expect the regulator to take a more active role in shutting down physical points of sale, websites and technological platforms operated by unlicensed operators that not only fail to comply with regulation, but also do not pay taxes.

Peru will hold elections next year to choose a new president and new members of Congress. What do you expect from this new political scenario?

We hope that the Executive branch—the Presidency of the Council of Ministers, the Ministry of Economy and Finance, and SUNAT—will deepen its understanding of the online gaming and sports betting industry and fully grasp the harmful impact of the ISC, as it is currently applied to the amount of each bet, with a rate of 1% and a range between 0.3% and 50%.

They must understand that, if it is not amended, this approach will only encourage and favour illegal gambling in a globalised, technology-driven industry that is difficult to monitor and enforce. We also expect Congress to correct the ISC through legislative action, seeking an appropriate balance between tax collection, regulation and the sustainability of the formal industry.