Peru Cuts Illegal Online Gambling by 40% with New Regulations

Peru has achieved a significant milestone in its fight against illegal online gambling. The Ministry of Foreign Trade and Tourism (Mincetur) reports a 40% decrease in unlicensed gambling activities, attributing this success to the implementation of Law No. 31557 and its amendments.

This legislative framework, effective since February 2024, has positioned Peru as a leader in Latin America’s regulated online gambling sector. By formalizing the industry, the country has attracted reputable international operators and enhanced consumer protection.

The regulation mandates licensing for operators, imposes a 12% tax on net profits, and requires a minimum license guarantee of $235,000. Additionally, a Selective Consumption Tax (ISC) of 0.3% on each bet was introduced, set to increase to 1% from July 2025. These measures aim to generate significant tax revenue and ensure a fair gaming environment.

Stakeholders in the gambling industry should align with Peru’s regulatory standards to capitalize on the growing market and contribute to a responsible gaming ecosystem.

Peru’s Crackdown on Illegal Online Gambling Yields 40% Reduction

Key Points:

1. Regulatory Success: Peru’s enforcement of Law No. 31557 has led to a 40% reduction in illegal online gambling activities.
2. Industry Formalization: The country has licensed 60 technology platforms and 280 service providers, attracting major operators like Betsson, Stake, and Rush Street Interactive.
3. Tax Reforms: The introduction of a 12% tax on net profits and a forthcoming 1% ISC on bets aims to boost state revenue and promote responsible gambling.

Peru’s concerted efforts to regulate its online gambling industry have yielded impressive results. The Ministry of Foreign Trade and Tourism (Mincetur) announced a 40% decrease in illegal online gambling activities, a testament to the effectiveness of Law No. 31557 and its subsequent amendments.

Enacted in February 2024, the legislation established a comprehensive framework for online sports betting and gaming. Operators are now required to obtain licenses, adhere to strict compliance standards, and contribute to the nation’s revenue through taxation.

Mincetur’s General Directorate of Casino Games and Slot Machines (DGJCMT) has been instrumental in enforcing these regulations. Their actions include the closure of illegal establishments and collaboration with financial institutions to block transactions associated with unlicensed operators. These measures have resulted in the removal of 15% of illicit websites from the Peruvian market.

The formalization of the industry has attracted prominent international operators, including Betsson, Stake, and Rush Street Interactive. To date, 60 technology platforms and 280 service providers have been authorized, reflecting the growing confidence in Peru’s regulated market.

In addition to licensing requirements, the government introduced a 12% tax on net profits for online gambling operators. Furthermore, a Selective Consumption Tax (ISC) of 0.3% on each bet was implemented, with plans to increase this rate to 1% starting July 2025. While these tax reforms aim to boost state revenue, some industry stakeholders express concerns about potential impacts on market competitiveness.

Mincetur emphasizes the importance of responsible gambling and has initiated awareness campaigns in educational institutions. The collaboration with gaming associations underscores the commitment to protecting vulnerable groups and ensuring a safe gaming environment.

Peru’s proactive approach serves as a model for other nations seeking to regulate their online gambling sectors. By combining stringent enforcement with industry collaboration, the country has made significant strides in curbing illegal gambling activities and fostering a transparent, responsible gaming landscape.

Peru’s implementation of Law No. 31557 and its amendments has markedly reduced illegal online gambling activities by 40%. Through rigorous enforcement, strategic partnerships, and comprehensive regulatory measures, the country has established a robust framework that promotes responsible gambling, attracts reputable operators, and enhances state revenue. As the industry continues to evolve, Peru’s model offers valuable insights for effective online gambling regulation.