The Ministry of Foreign Trade and Tourism of Peru (Mincetur), has approved sports betting and online gaming regulations for the country.
This exhaustive document, also known as Supreme Decree No. 005-2023 Mincetur, details the requirements of gambling operators who wish to operate in Peru.
After the publication of regulations, the gaming laws will come into effect within 120 days. Operators are left with a short time frame to meet the new regulations.
It is the first regulation of this significant economic activity in our country. “In South America, Peru is the third country that regulates it after Colombia and Argentina in the provinces Buenos Aires Cordoba, and Mendoza”, said Minister of Foreign Trade and Tourism Juan Carlos Mathews.
The Ministry of Justice warns against steep penalties for non-compliance
Regulations will be in effect from 9 February 2024. The operators currently operating in the Peruvian gaming market have a month to submit a license application. Businesses have until 10 February 2024 to submit their applications.
Otherwise businesses could face a fine of up to S/990,000 (EUR245,394/PS212,401/$257,838) and no less than S/742,500.
A failure to obtain a license could lead to criminal charges. Government would prohibit operators from providing gaming.
The regulations allow for the Peruvian state to receive close to S/162m per year, which will be used to invest in the revitalization of tourism and tourist infrastructure, as well as promoting sport, mental health programs, and reactivating the industry.
We also want to make clear that this will not impact on betting or the awarding of prizes. All money earned as prizes will be paid in full. “The tax will be applied to both national and international online gambling and betting firms.”
Highlighting the Consultation Process
This publication is the outcome of an extensive public consultation that received 772 comments from both public and private stakeholders.
The submissions include those from the Ministry of Justice and Human Rights and the Ministry of Economy and Finance, as well as the Financial Intelligence Unit of Peru. The other organisations that were consulted included gaming operators, vendors, legal firms, and international consulting companies.
Mincetur then held meetings with professionals from both the private and public sector as well as technology suppliers and unions.
This result is important because it shows the coordination of Mincetur’s work with predictability, transparency and openness. All parties involved in this issue were included in the development of the regulations.
Peru Gaming Law
Pedro Castillo signed into law Law No 31557 in August 2022 to regulate Peru’s gaming industry.
Some critics argued that the initial legislation exempted the foreign operators of tax.
Peru then passed Law No 31806 The law changed a few provisions from the original.
The changes included the tripling of license fees up to S/2.97m, or 3% net income – whichever was higher. A point-of-consumption regime was also set up for online gaming, and only Peruvian addresses were allowed to be used.
