New regulations have been approved in Peru, leading to a threefold increase in the cost of acquiring gaming licenses. The price for new licenses will now amount to Sol2.97m ($808,000/ £652,000/ €753,000).
On the evening of May 25th, the Commission of Economy, Central Bank, Ministry of Finance, Financial Intelligence Unit, and the Congress of Peru collectively approved new regulations that will establish a comprehensive legal framework for the gambling industry in the country.
The revised Law No. 31557 introduces a 12% point of consumption tax in Peru. However, the Peruvian sports betting association (APADELA) has criticized the previous version of the law for effectively exempting foreign operators from the gaming tariff by only imposing taxes on Net Win.
Retail licenses for gambling have been discontinued
In Peru, the newly enacted law has put an end to the practice of retail licenses in the gambling sector. Instead, the government will require points of sale to provide a warranty of Sol24,750 in order to offer gaming services.
These new regulations establish the legal framework for online gambling in Peru. They also introduce stricter Know Your Customer (KYC) requirements, requiring players to register before placing bets. This marks a departure from the previous practice of allowing anonymous betting.
Non-compliance with the regulations may result in penalties, including fines, imprisonment of up to four years for individuals found culpable, as well as license suspension or cancellation.
Under the new rules, platforms will have the ability to offer games of chance on Peruvian URLs such as bet.pe, .bet, .com.pe, and .pe.
The implementation of the new rules will take effect 120 days after the approval of the technical regulations.
Peru has conducted a public consultation to gather feedback and opinions on its gaming law
The recent regulatory overhaul was prompted by a comprehensive public consultation, which sought input from various stakeholders on the optimal approach to regulating the gambling sector.
On May 19th, the Ministry of Foreign Trade and Tourism (Mincetur) released the outcomes of this consultation process. Running from November 11th to December 2nd, the initiative received a total of 772 contributions from both public and private entities.
Contributors to the consultation encompassed a range of participants, including the Ministry of Justice and Human Rights, the Financial Intelligence Unit, operators and suppliers in the igaming and sports betting sectors, as well as individual stakeholders.
Law No. 31,557
In August 2022, President Pedro Castillo of Peru signed Law No. 31,557, marking the initial regulation of the country’s gambling industry.
The law introduced several measures, including placing the industry under the supervision of Mincetur (Ministry of Foreign Trade and Tourism). It also established rules for suppliers operating in the market and provided guidelines on the allocation of gaming tax revenue.