Peru's New Gambling Law Triples Licence Costs and Introduces Point-of-Consumption Regime.Published July 6, 2023 by OCR Editor
Peru's President Dina Boluarte has officially signed the country's new gambling regulations into law, leading to a threefold increase in licence costs. The updated legislation aims to address gaps in the previous laws and ensure fair taxation for domestic and foreign operators in the Peruvian market.
After the announcement of adopting gambling regulation in November 2022, Peru has completed an important step forward in regulating its gambling industry with the approval of Law No 31,806. The amended legislation addresses various issues in the original laws, including exempting foreign operators from taxes. One of the key changes is the substantial increase in licence costs, which will now be calculated as 3% of net income or Sol2.97m, whichever amount is higher.
In addition to the revised licence fees, the new law establishes a point-of-consumption regime for online gambling operators in Peru. These operators must now have a Peruvian domain address and be subject to a 12% tax on their revenue.
The regulations also introduce stringent know-your-customer (KYC) requirements to ensure responsible gambling practices. Gambling businesses will be required to verify the identity, age, and nationality of their customers accessing gambling services.
Furthermore, the new law imposes restrictions on betting options. Players in Peru will only be allowed to place bets on sporting events that national or international sports associations, federations, or leagues sanction.
Sponsorship rules have also been reformed under the updated legislation. Only licensed businesses will be permitted to sponsor sports teams or events, ensuring a controlled and regulated environment.
The new gambling law is set to take effect 20 days after its publication in the government gazette, scheduled for July 18.
With these regulatory changes on the horizon, the Peruvian market presents new opportunities for operators. Already home to a mix of domestic and foreign brands, such as Betsson-owned Inkabet and Bet365, the market is gaining attention. As operators prepare to adapt to the updated regulations, the Peruvian gambling landscape is expected to evolve, offering a more regulated and responsible gambling environment for players nationwide.
Implementing Peru's new gambling regulations is expected to bring significant changes to the online gambling market in the country. With increased licence costs and introducing a point-of-consumption regime, operators may undergo a period of adjustment. The market will likely see a shift towards compliance and responsible gambling practices, as operators will be required to meet stringent KYC requirements. The reforms are anticipated to create a more regulated and controlled environment, fostering consumer trust and confidence in the Peruvian online gambling industry.