Peruvian Government Votes to Regulate iGamingPublished July 19, 2022 by Lee R
Peru stands to welcome many foreign operators now that the government has established a regulatory framework for iGaming.
In a huge development in South America, Peru has legalised iGaming.
On July 15, Peru's Congress concluded Parliamentary debate with a unanimous vote of all 91 votes cast in favor of a regulated framework governing online gambling and sports betting, with only seven abstentions.
Regulatory responsibility will fall within the purview of Peru's foreign trade department Ministry of Foreign Trade and Tourism of Peru (Mincetur).
The main component of the legislation is a monthly 12% gaming tax on operators' net income minus maintenance costs, which will be assessed a 2% maintenance tax across the board on monthly operator income.
Operators licensed in Peru will have the opportunity to offer iGaming bonuses for online games, as long as the bonuses are not exchangeable for money.
Peru's new safe betting guidelines require operators to display a minimum warning message on sports betting platforms that reads:
“excessive online sports betting can cause pathological gambling.”
Sports Betting Terminals
Further sports betting guidelines include operator permits to set up sports betting rooms online, where Peruvian players will be able to log in and place bets.
Infractions will result in warnings, fines of up to SOL200 (£42.79/€50.47/$51.24); licence disqualifications of up to 10 years; or permanent disqualifications.
Mincetur will have the power to act preventatively and impose precautionary measures on operators, including but not limited to temporary closures and assets confiscation: these potentially extreme impacts on businesses indicate that operators need to be well-educated to comply with guidelines entering Peru.
The legislation is set to come into effect 60 days from the day the announcement is published in the country's official gazette, El Peruano.
Peru's responsible gambling policy will also provide protection for minors and excluded players. A European model of self-exclusion looks likely to be incorporated at some point as well.
As for reinvestment, Peruvian Association of Online Sports Betting VP Gonzalo Perez indicates the 12% tax on net wins can be reinvested into the expansion of the jurisdiction's iGaming industry.
This is not an introduction of iGaming to Peru, as local online casino providers are licensed within state frameworks by the General Directorate of Casino Games and Slot Machines DGJCMT, which works closely with Mincetur.
The national regulatory framework opens the door for the Peruvian federal government to unify iGaming guidelines and expand the number of foreign operators that can be welcomed to the Peruvian market as a key additional source of private foreign investment.