“Everybody wants to take you down” in Peru

In the competitive landscape of Peru’s burgeoning gambling market, Gonzalo Perez, the CEO of local operator Apuesta Total, is poised to face new challenges, including an impending consumption tax. Perez is determined to solidify the company’s status as the market leader.

With the regulation of online gambling set to take effect in 2024, Peru is being positioned as a potential powerhouse in South America’s betting industry. Analysts predict it could rise to become one of the top three betting markets in the region, particularly as international operators like Betsson and Rush Street Interactive express increasing interest.

Currently, Apuesta Total claims a market share of approximately 25% to 30%, positioning itself as a frontrunner in this competitive sector. Perez acknowledges that while the company is well-established, the need to innovate and adapt to maintain its leadership has never been more pressing.

“When you are at the top, all eyes are on you, and everyone is eager to overtake you. Once you achieve market leadership, you must accelerate your efforts; there is no time for complacency,” Perez articulated during the recent ICE conference, emphasizing the need for continual growth and innovation.

Perez is confident in Apuesta Total’s ability to meet market challenges head-on. “Our greatest challenge will be to sustain our leadership amidst rising competition,” he added, reflecting the dynamic nature of the gambling industry.

Capitalizing on Local Expertise

The competitive climate in Peru is intensifying, with U.S.-based Rush Street Interactive launching its RushBet brand, alongside established names like Stake and Betsson. Notably, Betsson has been active in the Peruvian market since 2008, operating through two local brands. In contrast, Apuesta Total has established roots since 2016, leveraging its retail betting presence to gain a foothold.

Perez is unfazed by the entry of well-known international brands, attributing Apuesta Total’s competitive advantage to its deep understanding of the local market. The company has successfully built a robust portfolio of local marketing initiatives, including significant partnerships such as its sponsorship of Universitario, the reigning champions of Peru’s top-flight football league.

A key highlight is Apuesta Total’s sponsorship of Universitario’s upcoming friendly match against Inter Miami—a notable clash featuring football legends like Lionel Messi and Luis Suárez. “Although we don’t allocate as much to marketing as our competitors, we still lead in brand recognition,” Perez remarked. “Our strategy involves meticulous selection of opportunities where our marketing investments yield substantial returns.”

Recently, Apuesta Total has partnered with Spanish provider R. Franco Digital to enhance its game catalogue in Peru. “We are constantly innovating, exploring new technologies and customer engagement strategies to stand out from the competition,” Perez stated. “Our customer-centric approach is a cornerstone of our success, as evidenced by our satisfied user base.”

Navigating the Consumption Tax

Despite the enthusiastic outlook for the Peruvian gambling market, Perez’s optimism is tempered by the introduction of a new betting consumption tax, recently approved by the legislature. Initially excluded from the regulatory framework established under Law No. 31557, this tax was reintroduced in late 2024, mandating a 1% levy on the total value of each bet.

However, this rate has been temporarily reduced to 0.3% until July, before reverting to the earlier agreement of 1%. Though Perez considers this reduction beneficial, he warns that any additional tax burden exceeding the current 12% rate on gross gaming revenue (GGR) could inadvertently fuel black market activities.

“One significant concern around this consumption tax is that it may prompt our customers to shift towards illegal operators who do not impose such taxes,” Perez cautioned, highlighting the potential repercussions for the regulated gambling sector.

Perez’s Commitment to Maintaining Market Leadership

Amidst the uncertainty stemming from new international competitors and tax challenges, Perez’s strategy remains resolute: “Our primary objective is to retain our position as market leaders.”

With the target firmly on Apuesta Total’s back, Perez believes that the company’s unique strengths, including local knowledge and targeted marketing strategies, will empower it to stay ahead of the competition. As the market evolves, so too will Apuesta Total’s commitment to innovation and customer satisfaction, ensuring its continued prominence in Peru’s vibrant gambling industry.