- REGULATION & COMPLIANCE
Peru’s Ministry of Foreign Trade and Tourism (Mincetur) received 145 requests for operator licences over the first 30 days after Law no 31557 came into effect.
Law no 31557, which regulates online gaming and sports betting, went into effect on 9 February.
Operators had until 10 March to apply for a licence. Mincetur had warned those already active in the Peruvian market that they could face a fine of up to Sol990,000 (€245,394/£212,401/$257,838) or criminal prosecution if they did not apply.
That initial application process has now closed for companies already active in Peru. The country’s minister of foreign trade and tourism, Juan Carlos Mathews, confirmed 145 requests had been received from both national and international companies. Those not previously in the Peru market can continue to apply.
During the initial 30-day period period, 144 linked service providers were registered with seven international certification laboratories gaining accreditation. This included Gaming Laboratories International.
Mincetur also received 184 applications seeking approval for technological platforms and game modalities.
“This is an important step that Peru is taking to regulate this activity, not only because of the economic movement it generates and the revenue it will have, also because of the need to provide security to citizens who enter and use these applications,” said Mathews.
Specifics of Peru’s online gambling market
Mincetur approved gambling regulations in Peru in October. Supreme Decree 005-2023-Mincetur outlined the requirements that operators must meet to offer their services.
A tax rate of 12% of gross gaming revenue (GGR) has been set for operators as of 1 April. Mincetur estimates that online gaming and sports betting will produce around Sol162m a year for the Peru state. It also projects that around Sol3.8bn was placed in bets during 2022.
Of the tax, 40% will go to Mincetur for control and oversight of the operation of online betting technology. Of the remainder, 20% each will go to the public treasury, the Ministry of Health’s mental health department and the Peruvian Sports Institute for the development of sports in Peru.
However, there will be no tax on players’ winnings, with taxes only applying to companies.
Licence fee triples
Peru’s president Pedro Castillo initially signed Law no 31557 into effect in August 2022.
However, after Law no 31557 came under fire due to concerns over foreign operators being undertaxed, Law no 31806 was passed in May 2023.
This amended a number of provisions. Among the changes was the licence fee cost, which tripled to Sol2.97m. The new law also ended the practice of retail licences.
Under the new regulations, the government will ask points of sale to pay a warranty of Sol24,750 in order to offer gaming services.