Rush Street Interactive launched the RushBet brand at the beginning of this year in Peru, as part of its strategic expansion into Latin America.
Rush Street Interactive announced their expansion to Peru on Monday, 29 July. This is a new regulated market that has a population of over 30 million.
RSI already has offices in Colombia and Mexico. This new extension will further increase the influence of the company in LatAm.
RSI is the first licensed operator under Peru’s newly-enacted regulatory framework.
Richard Schwartz, chief executive of Rush Street Interactive, believes that the launch of RushBet in Peru will be crucial for the growth and success of the company within the competitive but exciting LatAm market.
Schwartz stated that the move would allow them to take advantage of their operational expertise, especially the brand equity they have built and the operational efficiency in Latin America over the last six years.
RushBet’s best-in class product can be offered to new, enthusiastic audiences in Peru because of the vibrant culture surrounding sports and its growing digital economy.
Rush Street Interactive’s LatAm Expansion
RSI has already launched in Colombia and Mexico.
Rush Street was the first US-based company in South America to offer a legal online sportsbook when it launched in Colombia in June 2018.
Rush Street Interactive will launch RushBet with a contract of 25 years in Mexico on July 20, 2022. This was made possible by a partnership between Grupo Multimedios, a Mexican media conglomerate.
RSI has also enjoyed success in LatAm. Schwartz, when announcing the Q1 results of 2024, noted that the LatAm operation had seen revenue increase by 84.0% year on year. He added there was room for further growth with additional investment.
Schwartz believes that the Peru expansion is a key component to LatAm’s ambitions. This will be aided, in part by previous experience the company has had.
Schwartz said, “We are excited to bring our expertise to Peru where we can see tremendous potential in the online sportsbook and casino segments.”
Peru’s newly-regulated market
The journey of the Peruvian government to regulate gambling took an important step forward in October 2023, when Peru’s Ministry of Foreign Trade and Tourism approved new regulations.
The approval was given after the then President of Peru, Pedro Castillo, signed Law 31557 in effect for 2022. Delays were caused by controversy surrounding aspects like taxation and expensive retail licenses.
Mincetur has approved Peru’s market after a modified law in May 2023 was passed.
One of the changes was the replacement of the requirement for a retail license with an online only licence. The cost of that licence tripled to Sol2.97m (PS638,628/EUR744,466/$807,641) or 3% of net income, whichever was higher, while a 12% consumption tax was also established.
Mincetur has received 145 requests from operators for licenses within the first 30 days after Law 31557 became effective on 9th February.
Betsson was granted a license in June to run its Betsson, Betsafe and Betsafe-branded products in Peru. Inkabet, a Betsson subsidiary, acquired the local licenses for Peru powered by GiG’s platform shortly after.
