With a unanimous vote of 105 in favor and none against, the National Congress of Peru has successfully passed amendments to its Gambling Law 2022, effectively closing a series of loopholes.
The Gambling Law in Peru is pending the signature of President Dina Boluarte. The recent amendments, which include a revision to article 40, aim to eliminate a loophole that could have been exploited by international companies to evade the headline tax. With the new amendments, both local and foreign gambling companies will be subjected to an 11.76 percent tax rate on their revenue.
In the meantime, the Gambling Law in Peru awaits the signature of President Dina Boluarte. Notably, the amendments bring about several changes. Firstly, the minimum financial guarantee required from operators has been raised from 200 Peruvian tax units (approximately $270,000) to 600 units (+$500,000) or 3 percent of annual gross revenue. Additionally, the rules concerning player registration have been relaxed, allowing non-Peruvians to register for gambling. Moreover, operators will have the flexibility to use various internet domains, not limited to bet.pe as proposed in the previous version of the bill.
Furthermore, the law introduces a modification to the Peruvian Penal Code, criminalizing the act of offering gambling without a license. Those found guilty may face a prison sentence ranging from one to four years.
These changes were proposed by former Congress leader Lady Mercedes Camones (APP) with the intention of ensuring equal legal opportunities for all operators. The objectives include facilitating tax collection, preventing money laundering, ensuring customer safety, and collecting the appropriate taxes.
National Vice Minister of Tourism, Madeleine Burns, has estimated that regulated gambling in Peru could contribute approximately $160 million annually to the country’s tourism, sports, and healthcare sectors. However, one concern for operators in the current grey market is the relatively short implementation timeframe. The law grants a transition period of just 120 days for operators to adapt to the regulated market.