Peru moves one step closer to online gambling regulation
Peruvian President enacted a new law regulating remote gambling and sports betting in the country
On Friday, Peruvian President Pedro Castillo enacted a new law that will tax net gaming revenue (NGR) at 12% to help kick-start economic growth, following the unanimous vote to regulate sports betting and online gambling in the Peruvian parliament last month.
The law will take effect two months after Friday’s announcement.
Regulation and oversight of the new law will fall under the jurisdiction of the Ministry of Foreign Trade and Tourism of Peru (MINCETUR), the South American country’s foreign trade body.
Castillo took to social media following the announcement to discuss the importance this law will have on the economic growth in Peru.
“The economic reactivation, the impulse and growth of the country are fundamental tasks with which we have been committed since we began this Government,” Castillo said.
“Activities have emerged that generate economic resources, but since there is no regulation, they do not pay taxes, such as games and sports betting that have spread throughout the world and Peru has not been the exception.
“This important law that we promulgate today establishes that the MINCETUR will be the administrative authority at the national level that regulates, authorises, revokes and supervises the use of remote gaming and betting. It is the first time that it has occurred in Peru,” he added.
Castillo went on to say what the money raised from the taxation of NGR will be used for in the country.
He said: “Peru is creating a special tax of 12% to collect more than SOL156m (£33.2m) per year, which will be distributed equitably: 40% tourism sector, 20% mental health, 20% for sports and 20% to resources for social policies.”
When the vote was passed last month, it detailed what punishment offenders would face if they breached the legislation. A minor breach could result in a warning, a fine of up to SOL200, a suspension of the licence for up to 10 years or a permanent ban.
Several operators already offer their products in the region, and this new legislation will help them to expand their reach in Peru.
For instance, Betsson and the Peruvian Football Federation reached an agreement last year to rename the top division of Peruvian football, Liga 1 Betsson.
Additionally, in October 2021, Betsson signed a contract to buy Peruvian B2C operator Inkabet.
The only other entire country in South America with regulated online gambling is Colombia, along with Buenos Aires in Argentina. Brazil is in the process of introducing legal sports betting.