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.
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.
