The Peru Ministry of Foreign Trade and Tourism (Mincetur) claims its actions have caused the supply of illegal gambling on digital platforms and applications to reduce by 40%.
Mincetur, which oversees the gambling market in Peru, gave an update via its website on Friday, with over a year having passed since Law No 31557 to regulate online sports betting and gaming came into effect.
The Peru market has since attracted international entrants such as Stake, Rush Street Interactive and Betsson, with Mincetur authorising 60 technology platforms and registering 280 related service providers.
The regulator also claims to have made progress in the fight against black market operators, stating it has removed 15% of illegal sites in Peru and cut the supply of illegal online gambling by 40%.
Mincetur has achieved this through its General Directorate of Casino Games and Slot Machines (DGJCMT) authority, which has “intensified its oversight, closing illegal establishments and promoting coordinated actions to reduce the presence of clandestine platforms”.
DGJCMT has also contacted payment institutions to block transactions and services to illegal gambling operators in Peru.
Can Peru become a LatAm betting leader?
When Law No 31557 came into effect, Peru became just the third country in LatAm to establish clear regulations for online betting after Colombia and Argentina.
Mincetur claims it has positioned itself as a “regional benchmark” for gambling regulation, saying: “This regulation has allowed the digital sector to be formalised, fostering an environment of trust for both operators and users.
“It has also opened up new investment opportunities, boosting the digitalisation of entertainment and strengthening the country’s tax collection.”
Since December last year, 683 new sports betting venues have been registered, bringing the nationwide total to 4,516.
Mincetur has also introduced new measures to promote responsible gambling, such as talks aiming to raise awareness of gambling addiction in educational institutions, as well as training for betting companies.
“Collaboration with gaming associations reinforces the commitment to protecting vulnerable groups and ensuring a safe and responsible gaming environment,” Mincetur added.
Consumption tax a concern for the Peru gambling industry
Despite industry commentators predicting Peru will become the third largest online betting market in LatAm, the reintroduction of a consumption tax on the sector has caused concern among the industry over its impact on growth.
The rate is currently 0.3% on every bet placed, although this will increase to 1% from 1 July this year.
Gonzalo Perez, CEO of leading local operator Apuesta Total, fears the consumption tax, on top of the existing 12% GGR tax, will essentially double the burden on betting companies.
In turn, this could drive players and operators into the black market with Nicolás Samohod Rivarola, head of gambling and betting at the Vidal Caceres law firm in Peru, telling iGB: “It would take the tax impact on [licensed operators] to high and burdensome levels, bordering on unconstitutional.
“And it would make many [stakeholders] think about evaluating their [presence] in the Peruvian market.”
The Peru Ministry of Foreign Trade and Tourism (Mincetur) claims its actions have caused the supply of illegal gambling on digital platforms and applications to reduce by 40%.
Mincetur, which oversees the gambling market in Peru, gave an update via its website on Friday, with over a year having passed since Law No 31557 to regulate online sports betting and gaming came into effect.
The Peru market has since attracted international entrants such as Stake, Rush Street Interactive and Betsson, with Mincetur authorising 60 technology platforms and registering 280 related service providers.
The regulator also claims to have made progress in the fight against black market operators, stating it has removed 15% of illegal sites in Peru and cut the supply of illegal online gambling by 40%.
Mincetur has achieved this through its General Directorate of Casino Games and Slot Machines (DGJCMT) authority, which has “intensified its oversight, closing illegal establishments and promoting coordinated actions to reduce the presence of clandestine platforms”.
DGJCMT has also contacted payment institutions to block transactions and services to illegal gambling operators in Peru.
Can Peru become a LatAm betting leader?
When Law No 31557 came into effect, Peru became just the third country in LatAm to establish clear regulations for online betting after Colombia and Argentina.
Mincetur claims it has positioned itself as a “regional benchmark” for gambling regulation, saying: “This regulation has allowed the digital sector to be formalised, fostering an environment of trust for both operators and users.
“It has also opened up new investment opportunities, boosting the digitalisation of entertainment and strengthening the country’s tax collection.”
Since December last year, 683 new sports betting venues have been registered, bringing the nationwide total to 4,516.
Mincetur has also introduced new measures to promote responsible gambling, such as talks aiming to raise awareness of gambling addiction in educational institutions, as well as training for betting companies.
“Collaboration with gaming associations reinforces the commitment to protecting vulnerable groups and ensuring a safe and responsible gaming environment,” Mincetur added.
Consumption tax a concern for the Peru gambling industry
Despite industry commentators predicting Peru will become the third largest online betting market in LatAm, the reintroduction of a consumption tax on the sector has caused concern among the industry over its impact on growth.
The rate is currently 0.3% on every bet placed, although this will increase to 1% from 1 July this year.
Gonzalo Perez, CEO of leading local operator Apuesta Total, fears the consumption tax, on top of the existing 12% GGR tax, will essentially double the burden on betting companies.
In turn, this could drive players and operators into the black market with Nicolás Samohod Rivarola, head of gambling and betting at the Vidal Caceres law firm in Peru, telling iGB: “It would take the tax impact on [licensed operators] to high and burdensome levels, bordering on unconstitutional.
“And it would make many [stakeholders] think about evaluating their [presence] in the Peruvian market.”
