As the new year begins, operators across Latin America are facing the prospect of increasing tax rates.

In Peru, the government has confirmed that online gambling and sports betting will be subject to a 0.3% selective consumption tax (ISC), which will then rise to 1% from July 1.

Meanwhile, the president of Colombia, Gustavo Petro, has again proposed a tax increase for the gambling industry. Currently, operators in the country pay a 15% tax if their return to player (RTP) percentage is 83% or less, rising to 17% if RTP is above 83%.

Speaking on the latest episode of iGaming Daily, Lucia Gando, Editor of SBC Noticias, cautioned against rising taxes, citing the migration of players to the unregulated market.

She said: “We know this can be harmful for the industry because when this happens, players usually tend to go to illegal platforms so they don’t have to pay those additional taxes. We know that they don’t have any kind of protections or compliance measures.”

Focusing on Colombia, Lucia added that, as expected, the proposal has been met with backlash from the industry.

Dr Evert Montero Cárdenas, President of Fecoljuegos de Colombia, the organisation representing major operators in the country, has warned of the danger of players migrating to illegal operators and also claimed that “150 direct and indirect jobs generated by the industry would be at risk”.

Elsewhere in Latin America, Chilean legislators have issued an amendment to Supreme Decree No. 1,7222, making it easier for localised casino operators to renounce their permits without having to pay fines – as was previously set out by the legislation.

Fernando Noodt, Senior Journalist for SBC Noticias and host of the podcast, explained that the change helps the future of the industry by removing hurdles to terminate permits and “eases the whole process”.

Gando also noted that the new legislation will also help Chile‘s struggling casino group Enjoy as they will be able to avoid paying compensation for three of its casino licences if it chooses to give them up.

Earlier this month, the National Economic Prosecutor’s Office (FNE) also approved the sale of six of Enjoy’s casinos to its creditors as part of the second judicial reorganisation process of the operating company.

On the news, Noodt said: “It’s certainly good news for Enjoy which had their score lowered because there was uncertainty about whether they could go through with the reorganisation process, but since the [FNE] approved this part of the process, it’s looking good for the future of Enjoy.”