Peru Sanctions Legislation Paving the Way for Regulated Gambling Industry

Peru Sanctions Legislation Paving the Way for Regulated Gambling IndustryThe Ministry of Foreign Trade and Tourism of Peru (Mincetur) has sanctioned a series of online gaming and betting pieces of legislation aiming to regulate the gambling industry in the country.

The Peruvian government has recently published Supreme Decree No. 005-2023-Mincetur, which endorses the Regulation of Law No. 31557 modified by Law No. 31806, controlling the activity of remote gambling establishments. The comprehensive document describes in detail the technical and regulatory requirements for operators wishing to establish their foothold in the Peruvian gambling market.

The decree will become operative on February 9, 2024, establishing a 120-day deadline for operators to prepare to file their license requests. The applications must be submitted between February 10 and March 10 of next year. Online gambling services providers that fail to comply with this timeframe would be subjected to penalties including fines, criminal prosecution, and exclusion from the Peruvian gambling industry.

According to the newly established gambling laws, native and offshore online gambling operators must pay a 12% levy on their net profits from gaming and betting, effective from April 2024.

Players, on the other hand, will collect the prizes they won in full. To participate in online gaming and betting, they must undergo mandatory account verification procedures ensuring they are of legal gambling age. The supported payment methods will include credit cards and debit cards, among other government-approved processors. Cryptocurrencies, however, will not be among the eligible casino and sports betting banking methods.

The decree further aims to guarantee that remote gaming and betting activities are conducted in a fair, ethical, and transparent environment. Ensuring integrity and equal treatment of all participants in the sector are specifically highlighted. There is a focus on vulnerable groups of society, with minors and individuals who are easily susceptible to gambling’s potential harms at the forefront. The regulatory framework aspires to promote responsible gambling policies preventing problem gambling. Concurrently, the measures serve to thwart money laundering practices.

Juan Carlos Mathews, Minister of Foreign Trade and Tourism, Comments on the New Regulatory Landscape in Peru

Juan Carlos Mathews, Minister of Foreign Trade and Tourism, highlighted that the implementation of these laws represents a key moment in Peru’s gambling history, demonstrating the government’s commitment to ensuring full transparency and financial integrity.

He added that Peru ranked third among the Latin American countries, after Colombia and Argentina, in modifying its gambling regulatory framework and moving toward a properly controlled online environment for both operators and players. The Minister also stated that the collected tax revenue would be utilized for the rejuvenation of tourism and tourist infrastructure, as well as the promotion of sports and various mental health initiatives.

According to the regulatory framework, Mincetur will be the administrative body responsible for monitoring, authorizing, and regulating remote gaming and betting activities in the country.