Peru's New Regulations for Sports Betting and iGaming

Peru's Ministry of Foreign Trade and Tourism (Mincetur) has approved the country's sports betting and iGaming regulations, marking a pivotal moment in the nation's gambling industry. This exhaustive document sets forth the technical and regulatory requirements for operators looking to offer their services within Peru.

Minister of Foreign Trade and Tourism, Juan Carlos Mathews, expressed the historical significance of this move, stating that Peru is now the third South American country, after Colombia and Argentina, to regulate this burgeoning economic activity.

These regulations are scheduled to take effect on February 9, 2024, allowing existing operators in Peru's gaming market one month to apply for licenses. Businesses have a narrow window from February 10 to March 10, 2024, to complete their applications. Failure to comply with these rules could result in substantial fines, with penalties ranging from S/ 742,500 to S/ 990,000. The ministry also cautioned that non-compliance might lead to criminal prosecution and even the suspension of gaming operations.

In addition to regulating the industry, the government intends to generate significant revenue. Mathews disclosed that this new framework could contribute approximately S/ 162 million annually, which will be reinvested in various sectors, including tourism, sports promotion, and mental health programs. Importantly, these taxes will apply to both domestic and foreign online gaming and betting companies, ensuring a level playing field.

The regulations published by Mincetur were the result of a thorough consultation process involving input from 772 stakeholders, both public and private. The Ministry of Justice and Human Rights, the Ministry of the Economy and Finance, Peru's Financial Intelligence Unit, gaming operators, suppliers, legal firms, and international consulting firms all participated.

Moreover, Mincetur engaged in discussions with professionals from the public and private sectors, unions, and technology providers, ensuring a transparent and collaborative approach in the development of these regulations. Mathews emphasized the importance of the coordinated efforts involved, resulting in a well-structured framework that addresses various concerns.

This regulatory framework marks a significant milestone in Peru's gaming industry. It stems from the signing of Law No. 31,557 by President Pedro Castillo in August 2022, aimed at regulating the country's gambling sector. However, the initial legislation faced criticism for allegedly exempting foreign operators from taxes. In response, Peru passed Law No. 31,806, amending several key provisions.

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 introduced a point of consumption regime for online gaming, restricting the use of Peruvian domain addresses for online gaming operations.

Peru's commitment to regulating the gaming industry highlights its efforts to ensure fairness, transparency, and financial contributions to the nation's development.