Peru Greenlights Gambling Regulations, Setting Stage for New Era in iGaming

The comprehensive regulatory document, dubbed Supreme Decree 005-2023-Mincetur, spells out the technical stipulations for gambling entities targeting the Peruvian market. With the regulation's announcement, a 120-day countdown has commenced, culminating in the official enforcement of the gaming law. Given this narrow window, operators scramble to align with the impending rules.

Juan Carlos Mathews, the Minister of Foreign Trade and Tourism, remarked on the momentous decision,

Peru's move to regulate this pivotal economic sector puts it on the map as South America's third country to do so, following steps by Colombia and certain provinces in Argentina.

Earlier this year, Peru introduced a new gambling law that triples the cost of licenses and implements a point-of-consumption regime. This act came after Peru updated its iGaming regulations to improve registration and betting processes. These changes are expected to optimize the iGaming industry in the country.

Stringent Penalties Await Defaulters:

Mark 9th February 2024 on your calendars when the rubber meets the road. Existing operators in Peru's burgeoning gaming landscape have precisely one month to secure their licenses, stretching from 10th February to 10th March 2024. Those who dawdle could face penalties ranging from S/742,500 to a hefty S/990,000. Beyond financial repercussions, non-compliant operators risk criminal prosecution and may be prohibited from conducting gaming operations within Peru.

Mathews shed light on the economic prospects of these regulations, anticipating an impressive S/162m annual collection by the Peruvian State. "These funds will be channeled into rejuvenating tourism, infrastructural developments, sports promotion, and bolstering mental health initiatives," he stated. He further emphasized, "The levied tax targets both domestic and international online gaming and betting entities, without affecting prize money."

Inclusive Consultation Drives Regulatory Formation:

Crafting such an exhaustive regulation was a collaborative endeavor. Mincetur executed a transparent public consultation process, drawing insights from 772 submissions. These perspectives spanned a spectrum of stakeholders, including governmental bodies like the Ministry of Justice and Human Rights and the Ministry of the Economy and Finance, as well as industry figures from gaming operators, tech providers, legal experts, and global consultancies.

Mathews celebrated this collaborative approach: "This regulation stands testament to Mincetur's commitment to transparency, inclusivity, and coordination. It's been a collective journey, with all key players contributing to the regulatory formation."

Tracing Back to the Regulation's Genesis:

The seeds for these regulations were sown in August 2022 when President Pedro Castillo endorsed Law No 31,557, initiating the move to structure Peru's gambling industry. The original law didn't meet universal applause, with critiques pinpointing potential tax loopholes for overseas operators. Reacting to such concerns, Law No 31,806 was subsequently ratified. This revised legislation beefed up license fees and introduced a point-of-consumption system exclusively for Peruvian domains, ensuring a more level playing field.

This decisive move by Peru paves the way for a more structured and transparent gambling ecosystem, promising robust growth and new opportunities for players in the iGaming space.