Peru claims 40% drop in unlicensed gambling
The Ministry of Foreign Trade and Tourism says the decline shows the success of the new regulatory framework for online sports betting and gaming.
Peru.- The Ministry of Foreign Trade and Tourism (Mincetur) has reported that unlicensed online gambling offerings available in the country have fallen by 40 per cent since the introduction of regulated online sports betting and gaming in Peru under Law No 31806.
The amended legislation for the regulation of online gambling was promulgated in July 2023 and became effective on February 9, 2024. To date, Mincetur, which is responsible for regulating the market, has authorised 60 technology platforms and 280 service providers.
Meanwhile, 683 new physical sports betting venues have registered, increasing the total to 4,516. Major players in the online space include Betsson, Stake and Rush Street Interactive.
Mincetur says that since regulation, enforcement action by the General Directorate of Casino Games and Slot Machines (DGJCMT), has included a clampdown on unlicensed gambling, both land-based and online, which has included a removal of 15 per cent of illicit websites. The DGJCMT has also been working with payment providers to block transactions linked to unlicensed operators.
Peru was the third country in Latin America to introduce a formal regulated gambling market, following Colombia and Argentina. Mincetur says its framework represented a “regional benchmark,” stating, allowing the digital sector to be formalised, and “fostering an environment of trust for both operators and users.”
“It has also opened up new investment opportunities, boosting the digitalisation of entertainment and strengthening the country’s tax collection,” the ministry said. “Collaboration with gaming associations reinforces the commitment to protecting vulnerable groups and ensuring a safe and responsible gaming environment.”
In January, Peru’s president Dina Boularte signed off on a new tax for online gambling in Peru. The Selective Consumption Tax (ISC for the initials in Spanish) is currently applied to online gaming and sports betting at 0.3 per cent, but this will rise to 1 per cent from July 1.
The so-called vice tax is applied to online gambling transactions carried out in Peru by Peruvian citizens or residents. It was expected that the 1 per cent rate would apply immediately, but operators opposed the move, arguing that it would take them up to eight months to modify their platforms and gain recertification from the national regulator Mincetur to transfer the increased cost to players.
Boularte and finance minister José Arista Arbildo finally opted to modify the implementation to grant a six-month transition period at the lower rate. However, some operators argue that Peru’s new tax framework from July still puts the channelisation rate to the regulated market at risk by making licenced operators less attractive to players.
The Peruvian Congress had already approved Bill-2070/2021, which imposes a 10 per cent tax on gross gaming revenues (GGR) for online sports betting and online casino gaming.
