Peru Announces Approval of New Gambling Regulations
LISTEN TO THIS ARTICLE:The Ministry of Foreign Trade and Tourism (Mincetur) in Peru has ratified the nation's new sports betting and iGaming rules.
Formally referred to as Supreme Decree 005-2023-Mincetur, the comprehensive document details the technical and regulatory criteria that gambling operators must meet to provide their services in Peru.
The new gambling rules will come into effect on 9 February, 120 days after they are issued, thereby giving operators a limited timeframe to ensure compliance with the regulations.
The gambling operators currently operating in Peru will have one month, from 10 February to 10 March, to apply for fresh licenses.
According to the ministry, failure to apply for a license could result in fines ranging from S/742,500 to a maximum of S/990,000 ($257,838). It could also lead to criminal charges, and the government may prohibit operators from offering gaming services.
The regulations will allow the Peruvian State to collect close to S/162m annually, to be invested in the reactivation of tourism, tourist infrastructure works, promoting sports and attending to mental health programs. We also make it clear that it will not affect betting and the payment of prizes. The money won as a prize will be collected in full. The tax will apply to national and foreign online gaming and betting companies.
Consultation Phase
Before publishing the new gambling regulations, Mincetur received 772 opinions from public and private stakeholders through a public consultation process. These include submissions from organizations like the Ministry of Justice and Human Rights, the Ministry of the Economy and Finance, and Peru's Financial Intelligence Unit.
The consultation also involved gaming operators, suppliers, and legal and international consulting firms.
Subsequently, Mincetur conducted meetings with professionals from both the public and private sectors and representatives from unions and technology providers.
Peru’s Regulated Gambling Market
Peru's gambling industry was regulated in August 2022 when Peru's president, Pedro Castillo, enacted Law No. 31,557.
However, the law was criticized by several quarters, with some contending that the initial legislation exempt foreign operators from paying tax.
Following these concerns, Peru passed Law No. 31,806, which made several amendments to the initial legislation. These changes include a threefold increase in license fees to S/2.97 million or 3% of net income, whichever is higher.
The law also provided for a point-of-consumption system for online gaming, permitting only Peruvian domain addresses.
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