Rush Street continues LatAm expansion with Peru launch

Rush Street Interactive Advances into Peru with RushBet Launch, Strengthening Latin American Presence

On July 29th, Rush Street Interactive (RSI) announced a major development in its strategic growth plan by launching its RushBet brand in Peru, capitalizing on the opportunities within a newly regulated market boasting a population of over 30 million.

This strategic entry follows RSI’s successful launches in Colombia and Mexico, solidifying the company’s foothold in the burgeoning Latin American gaming sector.

RSI has positioned itself as the first fully licensed online gaming operator within Peru’s regulatory framework, a significant milestone for the organization.

Richard Schwartz, CEO of Rush Street Interactive, emphasizes that the introduction of RushBet in Peru is poised to play a pivotal role in the company’s expansion efforts across the Latin American market—a region characterized by both vibrant sports culture and fierce competition.

“This move allows us to leverage our proven operational expertise in Latin America, particularly the brand equity and operational efficiencies we’ve built in the region over the past six years,” Schwartz stated. “Peru’s vibrant sports culture and growing digital economy present an exciting long-term opportunity for RushBet to offer our best-in-class product to a new and enthusiastic audience.”

Rush Street Interactive’s Strategic Expansion in Latin America

The rollout of RushBet in Peru enhances RSI’s already established presence in Latin America, with operations successfully initiated in Colombia and Mexico.

In June 2018, Rush Street Interactive became the first U.S. company to launch a regulated online sportsbook in South America, successfully entering the Colombian market. More recently, in July 2022, RSI expanded into Mexico, establishing a 25-year partnership with Mexican media conglomerate Grupo Multimedios to introduce the RushBet brand.

RSI’s ventures in Latin America have proven fruitful; during the announcement of the company’s Q1 2024 results, Schwartz revealed that the Latin American operations reported an impressive year-on-year revenue increase of 84%. He forecasts continued growth potential through further investments in the region.

Schwartz underscores that the Peru expansion will be a “key component” of RSI’s Latin American strategy, building on the company’s rich experience and insights gained from previous market entries.

“We’re excited to bring this expertise to Peru, where we see significant potential for growth in both online casino and sports betting segments,” Schwartz added.

The Evolution of Peru’s Regulated Market

The establishment of a regulated gambling market in Peru reached a significant milestone in October 2023 when the Ministry of Foreign Trade and Tourism (Mincetur) approved essential regulations for gaming operations.

This regulatory evolution commenced when the previous administration, led by President Pedro Castillo, enacted Law 31557 in 2022. However, the implementation faced delays due to controversies surrounding the tax structure and high costs associated with retail licensing.

With an amended law approved in May 2023, Mincetur’s endorsement paved the way for the legal framework, allowing for a streamlined regulatory approach.

• The amended law replaced the multiple retail license requirement with a single online license.
• The licensing fee increased to Sol2.97 million (£638,628/€744,466/$807,641) or 3% of net income, whichever amount was higher.
• A 12% consumption tax was also implemented.

Following the enactment of Law 31557 on February 9, Mincetur reported receiving 145 operator requests for licenses within the first month. Notably, in June, Betsson secured a license to operate its Betsson and Betsafe brands in Peru. Shortly thereafter, its subsidiary, Inkabet, secured local licenses, leveraging a platform enhancement through a partnership with Gaming Innovation Group (GiG).

As the landscape of regulated gambling in Peru continues to evolve, Rush Street Interactive’s strategic initiatives position it strongly for sustained growth and operational success in this dynamic market.