By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Innovate Change NewsInnovate Change NewsInnovate Change News
  • Finance & Legal
    • Finance
    • Legal
    • Lottery
  • Entertainment & Betting
    • Casino & Games
    • Esports
    • Sports betting
  • Industry Insights
    • Marketing
    • People
    • Social responsibility
    • Strategy
    • Tech & innovation
Search
2024 Innovate Change News. All Rights Reserved.
Reading: Peru reports surge in online gambling license applications, raises concerns over legal compliance
Share
Sign In
Notification Show More
Font ResizerAa
Innovate Change NewsInnovate Change News
Font ResizerAa
Search
  • Finance & Legal
    • Finance
    • Legal
    • Lottery
  • Entertainment & Betting
    • Casino & Games
    • Esports
    • Sports betting
  • Industry Insights
    • Marketing
    • People
    • Social responsibility
    • Strategy
    • Tech & innovation
Have an existing account? Sign In
Follow US
2024 Innovate Change News. All Rights Reserved.
Home > Blog > Legal > Peru reports surge in online gambling license applications, raises concerns over legal compliance
Legal

Peru reports surge in online gambling license applications, raises concerns over legal compliance

Jamie Becker
Last updated: March 29, 2024 12:28 pm
Jamie Becker
Share
6 Min Read
SHARE

In a significant move to regulate the virtual gaming arena, Peru has introduced Law no 31557, which officially took effect on 9th February. Aimed at standardizing online gaming and sports betting activities, this legislation demands that operators secure licenses by the 10th March deadline to avoid stringent penalties.

Contents
Main Highlights of Law no 31557:Licence ApplicationsList of Applicants by Sector:Regulations and TaxationKey Features of Peru’s Online Gambling Regulation:Peru’s Online Gaming and Betting Sector Set to Boost State RevenueProjected Financial Impacts

The law outlines clear directives for entities involved in the digital gaming industry, mandating compliance to foster a safer and more regulated environment. Operators who fail to adhere to these regulations risk facing heavy fines or even criminal charges, underscoring the government’s commitment to enforcing this policy.

Main Highlights of Law no 31557:

  • Effective Date: 9th February
  • License Application Deadline: 10th March
  • Penalties: Fines and Criminal Prosecution for Non-compliance

This legislative framework signifies Peru’s proactive stance in navigating the complexities of the online gaming and betting sector, ensuring both player safety and legal compliance. As the deadline approaches, all eyes are on operators to align their operations with the new standards set forth.

Licence Applications

The application period for companies currently operating in Peru to obtain licenses has officially closed, marking a significant milestone in the country’s regulatory process. This closure follows the receipt of 145 requests for licenses from a diverse pool of both national and international applicants, indicating a robust interest in compliance with Peru’s evolving legal landscape. However, the regulatory authorities have announced that new operators looking to enter the Peruvian market may still submit their applications, ensuring continued opportunities for expansion and collaboration within the country’s regulated sectors.

This measure is part of Peru’s efforts to streamline operations and ensure that all companies, whether they are longstanding entities or new entrants, adhere to local regulations and international standards of operation. The move is expected to bolster market integrity, stimulate economic growth, and safeguard the interests of stakeholders across various industries.

List of Applicants by Sector:

  • Technology: 45
  • Manufacturing: 35
  • Energy: 25
  • Healthcare: 20
  • Financial Services: 20

As Peru continues to attract investment and nurture its business environment, the regulatory framework is designed to ensure a level playing field, fostering a competitive and compliant marketplace. Interested new operators are encouraged to engage with the application process, contributing to Peru’s dynamic economic landscape.

Regulations and Taxation

In a significant development for the online gambling industry in Peru, the government, under Supreme Decree 005-2023-Mincetur announced in October, has set in motion specialized regulations. As of 1 April, online gambling operators are now subject to a definitive tax rate, calculated at 12% of their gross gaming revenue. This regulatory measure marks a pivotal step in structuring the rapidly evolving digital betting landscape in Peru.

The decree not only establishes a clear financial framework for operators but also underscores Peru’s commitment to fostering a secure and equitable online gambling market. Such a regulatory environment not only benefits players by ensuring fair play but also offers a transparent operating field for businesses. With this strategic tax rate, Peru aims to attract reputable online gambling operators, whilst ensuring the market’s sustainable growth.

Key Features of Peru’s Online Gambling Regulation:

  • Introduction Date: April 1, enactments under Supreme Decree 005-2023-Mincetur
  • Taxation Rate: 12% on Gross Gaming Revenue (GGR)
  • Objective: To provide a secure, transparent, and regulated online gambling environment
  • Benefit: Ensures fair play for consumers and a level playing field for operators

Peru’s Online Gaming and Betting Sector Set to Boost State Revenue

The Ministry of Foreign Trade and Tourism (Mincetur) anticipates a significant fiscal injection from the online gaming and sports betting industry, with projections indicating an annual contribution of roughly Sol162 million to the state coffers. In the year 2022 alone, a staggering Sol3.8 billion was recorded in betting activities within the nation. This flourishing market captures the increasing interest of both local and international players in Peru’s diverse gambling landscape.

Amid financial evaluations and regulatory scrutiny, Law no 31557 underwent crucial amendments aimed at enhancing the taxation framework for foreign betting operators. This legislative adjustment seeks to establish a more equitable tax regime, ensuring foreign entities contribute their fair share to the national revenue. This move is part of a broader strategy to tighten the regulatory oversight of the online gambling sector, safeguarding the interests of both the public and the state.

Projected Financial Impacts

Year State Revenue Contribution Total Bets Placed
2022 Sol162 million Sol3.8 billion
2023 (Projected) Increased Revenue Higher Betting Volume

The updated legal framework represents a strategic step towards harnessing the economic potential of online gaming and betting platforms. By ensuring a fair taxing process, Peru aims to capitalize on this rapidly evolving market, fostering a sustainable environment for both operators and gamblers. Such financial prospects signify a robust future for the country’s digital entertainment industry while bolstering public resources.

You Might Also Like

Fatal road rage incident involving Uber driver on Vegas Strip connected to gambling dispute

Legal challenges arise in lawsuit against Elon Musk’s gambling promotion

Traction grows in gambler’s lawsuit against BetMGM

Flutter’s Betfair wins court case related to problem gambling

MLBPA settles image rights lawsuit with FanDuel, impacting gambling industry

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Twitter Copy Link Print
Share
Avatar photo
By Jamie Becker
Jamie Becker is a highly regarded writer with a fervent passion for gambling and online gaming. With over a decade of experience in the industry, Jamie has established himself as a knowledgeable and trusted authority, covering a wide range of topics from casinos and sports betting to poker strategies and the latest trends in online gambling. His writing is noted for its meticulous research, clarity, and engaging style, making complex subjects easy to understand and enjoyable for readers of all levels. Jamie’s articles provide in-depth reviews, expert tips, and up-to-date industry insights, helping gamblers make well-informed decisions and enhance their gaming experiences.
Previous Article Golden Matrix shareholders vote to approve acquisition of MeridianBet in strategic move
Next Article OpenBet: Improving Player Protection Strategies with Accurate Data for Social Responsibility
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Latest News

BC.Game faces licensing threat and bankruptcy controversy over gambling operations
Strategy November 27, 2024
Australian gambling syndicate takes advantage of banks and bookmakers
Strategy November 27, 2024
Andrew Yang highlights connection between sports betting and taxation
Sports betting November 27, 2024
UK Gambling Commission criticized for inaction on investigating suicide related to gambling
Strategy November 25, 2024
//

We influence 20 million users and is the number one business and technology news network on the planet

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Follow US
2024 Innovate Change News. All Rights Reserved.
  • About Us
  • Contact
Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.
Welcome Back!

Sign in to your account

Lost your password?