Peru regulator cuts illegal online gambling supply by 40%

The Ministry of Foreign Trade and Tourism (Mincetur) of Peru has reported a significant milestone: its initiatives have led to a 40% reduction in the supply of illegal gambling available on digital platforms and applications.

Mincetur, the regulatory authority overseeing the Peruvian gambling market, updated the public via its official website on recent developments, noting that it has been over a year since the implementation of Law No. 31557 aimed at regulating online sports betting and gaming.

Since the law’s enactment, Peru’s gambling landscape has become increasingly attractive to international operators, including recognized names like Stake, Rush Street Interactive, and Betsson. Mincetur has authorized approximately 60 technology platforms and registered around 280 affiliated service providers to participate in this growing market.

In its ongoing battle against unregulated operators, Mincetur claims to have successfully eradicated 15% of illegal gambling sites in the country, further reinforcing its commitment to reducing illegal online gambling by 40%.

This progress can be attributed to the efforts of the General Directorate of Casino Games and Slot Machines (DGJCMT), which has heightened oversight, closed illegal establishments, and coordinated strategies to diminish the prevalence of clandestine platforms.

Moreover, DGJCMT has taken proactive measures by collaborating with payment institutions to block financial transactions and services linked to illegal gambling operators operating within Peru.

Can Peru Emerge as a Betting Leader in Latin America?

With the implementation of Law No. 31557, Peru has positioned itself as the third country in Latin America, following Colombia and Argentina, to establish clear regulatory frameworks for online betting.

Mincetur has expressed ambitions to be a “regional benchmark” for gambling regulation, emphasizing that this regulatory environment has facilitated the formalization of the digital sector. It fosters trust among operators and users while creating new investment opportunities, enhancing the digitalization of entertainment, and strengthening the nation’s tax collection.

Since December of the previous year, there have been 683 new sports betting venues registered, increasing the total across the nation to 4,516.

Additionally, Mincetur has implemented measures to promote responsible gambling, including awareness campaigns in educational institutions and specialized training programs for betting companies.

“Collaboration with gaming associations reinforces our commitment to protecting vulnerable populations and ensuring a safe, responsible gaming environment,” Mincetur asserted.

Concerns Regarding Consumption Tax in the Peruvian Gambling Sector

Despite optimistic projections that Peru could become the third-largest online betting market in Latin America, the reintroduction of a consumption tax has raised concerns among industry experts regarding its potential impact on growth.

The current tax rate stands at 0.3% on every bet placed; however, this will escalate to 1% starting from July 1 of this year.

Gonzalo Perez, CEO of the prominent local operator Apuesta Total, has expressed apprehensions about the additional consumption tax, which, coupled with the existing 12% Gross Gaming Revenue (GGR) tax, could effectively double the fiscal burden on betting companies.

This could lead to a resurgence in black market activities. Nicolás Samohod Rivarola, head of gambling and betting at Vidal Caceres law firm in Peru, highlighted this issue in an interview with iGB, stating that the tax burden on licensed operators could reach unsustainable levels, “bordering on unconstitutional.”

Furthermore, Rivarola indicated that such taxation may compel various stakeholders to reconsider their operations in the Peruvian market.