Peru’s Initiative to Curb Illegal Online Gambling Yields Notable Results
The Ministry of Foreign Trade and Tourism (Mincetur) of Peru has reported a significant decline in illegal gambling activities on digital platforms, citing a remarkable 40% reduction. This announcement highlights Mincetur’s ongoing commitment to regulating the gambling industry within the country.
As the regulatory body overseeing this sector, Mincetur provided a comprehensive update via its official website, marking a year since the implementation of Law No. 31557, which set forth regulations for online sports betting and gambling. This legislation has attracted a range of international companies, including prominent names like Stake, Rush Street Interactive, and Betsson. As a result, Mincetur has licensed 60 technology platforms and recognized 280 service providers associated with this emerging market.
The regulator also highlighted its success in combatting illegal gambling operations, having eliminated 15% of unauthorized online sites and significantly curtailing the supply of these illicit services. The General Directorate of Casino Games and Slot Machines (DGJCMT), under Mincetur, has actively reinforced its monitoring efforts, targeting the closure of unlicensed establishments and increasing collaborative measures to combat clandestine online platforms.
Moreover, the DGJCMT has engaged with payment services to hinder transactions funneling into illegal gambling establishments in Peru.
Peru’s Potential as a Leader in Latin American Betting
With the establishment of Law No. 31557, Peru set itself apart as the third nation in Latin America, following Colombia and Argentina, to implement structured regulations for online betting. Mincetur has expressed its ambition to serve as a "regional benchmark" for gambling governance, claiming that these regulations have led to a formalized digital landscape that fosters trust among operators and customers alike.
This legal framework has not only opened avenues for investment but has also enhanced the digital entertainment sector, positively impacting tax revenue for the country. Since December, the registration of new sports betting venues has surged, with 683 additional sites bringing the national total to an impressive 4,516 locations.
Mincetur has also initiated several programs promoting responsible gambling, including outreach efforts in educational institutions to raise awareness about gambling addiction and training programs for betting operators. The ministry emphasized collaboration with gaming associations to safeguard vulnerable populations and ensure a secure gaming atmosphere.
Concerns Regarding Consumption Tax in Peru’s Gambling Sector
Despite optimistic projections ranking Peru as the potential third-largest online betting market in Latin America, the recent reimposition of a consumption tax has raised concerns about its implications for the industry’s growth. Currently set at 0.3% on each bet, this rate is scheduled to rise to 1% starting July 1.
Industry leaders, such as Gonzalo Perez, CEO of Apuesta Total, express apprehension that this new tax, coupled with the existing 12% gross gaming revenue tax, would effectively double the financial burden on operators. This situation could inadvertently push both players and companies towards the black market.
Nicolás Samohod Rivarola, a gambling and betting expert at the Vidal Caceres law firm in Peru, cautioned that such tax implications could reach levels many would consider excessively burdensome or even unconstitutional. He noted that this could lead various stakeholders to reevaluate their engagement in the Peruvian market.
In summary, while Peru is making strides in regulatory efforts and establishing a reputable gambling market, the introduction of new taxes presents challenges that could hinder its progress. Balancing regulation and taxation will be essential for maintaining this growth and ensuring the integrity of the gaming landscape.