Peru Moves Forward: Online Gambling and Sports Betting to be Legalized

Law 31806, passed by the government of Peru, will legalize online gambling and sports betting nationwide.

Great news from Peru! The government has taken a significant step towards regulating online gambling by promulgating a groundbreaking law, which has already been published in the national gazette. This new legislation aims to create a robust regulatory framework for the online gambling market, addressing the need for formal guidelines and closing tax loopholes.

President Dina Boluarte has officially approved the country’s new gambling laws, marking a significant milestone in the regulatory landscape. As a result, license costs will triple, amounting to an impressive Sol2.97 million (equivalent to $814,000/£643,000/€746,000). This development underscores the government’s commitment to creating a robust and sustainable gambling industry that will benefit both operators and the Peruvian economy.

To ensure fair play and prevent illicit activities such as money laundering, the law focuses on tax collection from online gambling while promoting a safe and responsible gaming environment. Peru’s Ministry of Trade and Tourism (MINCETUR) will play a pivotal role in overseeing the implementation of these regulations. They will be responsible for licensing platforms and systems for remote gaming and sports betting.

Point-of-consumption system 

Additionally, the legislation implements a point-of-consumption system, mandating that all online gambling enterprises functioning within the South American nation must utilize a Peruvian domain address such as .bet.pe, .bet, .com, .pe, or .com.pe.

Excitingly, this new law welcomes both domestic and foreign online gambling businesses to contribute to Peru’s thriving market. Operators will be subject to a reasonable tax rate of 11.7% of their revenue, with a minimum payment per operator set at 600 tax units (equivalent to approximately $500,000) or 3% of their annual gross revenue. These taxes will help fund various public initiatives and support the growth of the industry.

Licensed operators will also have the privilege of sponsoring Peruvian sports, further boosting the development of local sporting events. It is important to note that sports betting will only be allowed on professional events sanctioned by recognized national or international sporting bodies, federations, or leagues, ensuring the integrity of the competitions.

KYC Measures

The updated regulations mandate that operators must implement know-your-customer (KYC) measures. These measures will involve verifying the identity, age, and nationality of individuals accessing gambling services.

In Peru, players will now be limited to placing bets on sporting events that are affiliated with national or international sports associations, federations, or leagues.

Furthermore, an encouraging update to the law now allows foreign residents and tourists to participate in online gambling activities, enhancing the overall experience for visitors and expanding the market’s reach.

Unlicensed gambling operations will face severe penalties, including prison terms of up to four years. This firm stance against unauthorised gambling aims to safeguard consumers and maintain the integrity of the regulated market.

With the introduction of this comprehensive law, Peru is set to establish itself as a leader in the online gambling industry. By embracing responsible practices, encouraging fair competition, and promoting tax compliance, the government is laying a solid foundation for a thriving and secure online gambling environment.

With the new gambling regulations set to enter into effect next month, the many operators may be mulling the potential opportunity that the market represents.

The market at present already boasts a number of foreign brands. Betsson-owned Inkabet is active in the market. A 2022 survey by TGM Research named Inkabet as the brand which enjoyed the most market awareness among Peruvian consumers.

The same study also highlighted Bet365 as a business which most players in Peru were aware of. The market is also home to a number of domestic operators including Te Apuesto and Betara.