Peru's regulated online gambling market officially launched in February 2024 and has quickly attracted numerous international operators. Among them is the leading domestic company, Apuesta Total, which continues to compete in this emerging sector.
Jennyfer Escobar, the Peru country manager for Stake, points out that the competition in the region is among the fiercest in Latin America. "Initially, competition was largely driven by marketing investments, including advertising and sponsorships," says Escobar. "Today, factors such as product quality and platform performance, along with overall user experience, are becoming stronger differentiators.
"Players today are more informed and have higher expectations; they'll switch brands if those expectations aren’t met."
Stake began operations in Peru in 2024, while Betsson has been active since 2008, playing a significant role in the market's development both before and after regulation. Andrea Rossi, Betsson's commercial director for both Southern Europe and Latin America, describes the market as "quite polarised," with several operators including Betsson holding a majority stake while others struggle to keep up. "Competition has already evolved," he notes, acknowledging the fierce rivalry among players.
“We’ve been around for a long time and have cemented our position, but we need to continually improve and adapt to Peruvian culture with a localized approach.”
Faced with competition from international operators, local brands in Peru leverage cultural insights and knowledge. Ramiro Atucha, founder and CEO of Atucha Strategic Advisory, believes the ability of international operators to capitalize on their advantages hinges on how genuinely they engage with local markets.
“At the end of the day, localisation goes beyond merely speaking the language or referencing Machu Picchu in games,” Atucha explains. "It involves understanding the history and preferences of local players." He recalls how Colombian operators initially misjudged player preferences, noting that many had previously claimed Colombian players did not like slots, which proved to be untrue over time. Building relationships and understanding local tastes, he insists, is essential for success.
Local operators in Peru are striving to enhance their technology by collaborating with high-quality suppliers. However, Atucha warns that many larger platforms prefer to work exclusively with tier 1 operators, potentially overlooking smaller entities that could later rise to prominence.
Betsson's experience in the Peruvian market since 2008 gives it a significant edge over newer entrants. Rossi emphasizes that a multitude of factors contribute to Betsson's success in Peru. In the second quarter of 2024, Peru emerged as Betsson's largest revenue region at 36%, totaling €310.2 million.
“Success is not dependent on one single aspect,” Rossi notes. "Peru has always been a key growth area for us, with ongoing substantial investments not just in marketing but also in product development and localization, all supported by understanding the local market and what customers seek in their operator experience.”
Similarly, Stake has also capitalized on global reach while deeply understanding local needs. With licenses in Colombia, Brazil, Peru, and Mexico, as well as the Province of Buenos Aires in Argentina, Escobar stresses the importance of aligning Stake’s global capabilities with local market demands. "Having a strong market product is essential, but understanding local players is equally critical. We’ve made considerable investments in local partnerships and tailored our marketing to meet regional preferences. This balance helps us establish a strong foothold in what's one of the most competitive markets in Latin America."
The regulatory framework in Peru, widely regarded as one of the most thorough in Latin America, has laid a solid foundation for growth. Rossi describes the initial rollout of regulations as highly positive, highlighting the regulator's commitment to a safe and transparent market environment. Escobar concurs, indicating that despite the market's short existence, it has successfully progressed towards creating safer conditions while standardizing operations for licensed operators.
However, the introduction of a 1% selective consumption tax (ISC) on all online bets from July 1, 2025, raises concerns. Atucha cautions that although regulations seemed operator-friendly initially, there's a risk that governments will later impose harsher rules. He likens this to the experience in numerous Latin American markets where tax increases have become common.
Rossi believes the ISC is an example of misguided tax implementation that lacks an understanding of the industry’s dynamics. "Peru has successfully guided customers into regulated channels, but increasing tax burdens could shift them back to the black market, which remains untaxed and more attractive for consumers,” he remarks.
The risks of high taxes affecting the industry are underscored by Atucha, who points to cases in Germany and the UK where rising taxes resulted in significant shifts in market dynamics. He wishes regulators would pay attention to such examples to avoid similar setbacks in Peru.
As longstanding operators grapple with competitive pressures and tax challenges, Escobar foresees a changing landscape. She anticipates that as the market matures, operators will need to focus on several factors beyond marketing.
"I don’t believe Peru has reached full maturity yet, but we are entering a new stage of development," Escobar predicts. "Moving forward, competition will be more quality-driven, requiring operators to emphasize technology, product innovation, responsible gaming, and customer experience."
Conversely, Rossi perceives Peru as a mature market given its historical context in Latin America. He highlights growing mobile penetration and a younger demographic's increasing interest in online entertainment as key growth factors.
For Peru's future, operators must not only aim to retain existing bettors but also successfully engage with the new generation of digital consumers. Rossi concludes that educating newcomers about responsible play and online gaming is crucial as the market continues to evolve.
