Peruvian Lawmaker Puts Forward Bill For 12% Online Gaming Tax

Walter Ascona, a Peruvian lawmaker, has proposed a bill to tax internet gaming and sports betting. If passed, the tax will take 12 percent of revenue and distribute it to municipalities and provinces.

About the fact that online gaming in Peru is unregulated, it generates about $485 million in sales, according to local publication RPP. The bill will impose a 12 percent revenue tax on the business, raising $65 million for the state each year.

In addition, the proposed bill calls for the creation of funds that will fund efforts to discourage problem gambling as well as encourage sports, educational, and cultural events.

Furthermore, the project stipulates that if an organisation has its headquarters in Peru, the Ministry of Finance and the Ministry of Foreign Trade will be in charge of establishing a mechanism to define how 60 percent of taxes will be sent to the provinces and 40 percent to municipalities.

If a company does not have a physical address, the sales will be split by all Peruvian municipalities.

Casinos have $540 million deficit

The Casinos and Slots Workers Union has warned that the industry has lost $540 million since the outbreak began, with 10 percent of businesses going bankrupt in recent months.

Iván Katekaru, a union leader, estimated that about 15 percent of the workers had been lost, saying: “This union is made up of approximately 800 operations nationwide. It’s one of the largest sources of jobs in the country with 87,000 formal jobs and 250,000 indirect jobs, and one of the most organized sectors as it contributes more than $135m a year.”

Katekaru also urged the Council of Ministers’ Presidency to review the situation in the sector and encourage them to reopen with reduced power.

“I believe that they should give us the opportunity to keep working and treat us as a major entertainment industry, just like restaurants and shopping malls,” he said.