Legislation
Peru – Government seeks to amend law on online gambling
By James - 8 April 2024
The Minister of Economy and Finance (MEF), José Arista, announced that the government is looking to modify Law 31557, which regulates the operation of online gambling.
“The Executive Branch will propose a regulation to Congress amending Law 31557 to regulate elements necessary for the application and collection of taxes on remote gaming and sports betting, as well as to allow for their declaration and payment by the obligated parties,” the minister stated.
Minister Arista emphasized the need to establish a regulatory framework that allows for the proper payment and declaration of tax by foreign betting companies operating in Peru. He argued that since in-person games are already subject to taxes, it is “fair and equitable” for remote games to be subject to the same tax regime.
José Arista stated that the objective of the modification of the bill was to guarantee that non-domiciled companies pay the tax, equivalent to 12% of their net income.
Interest in the newly regulated online market is high. During the first 30 days of the enforcement of Law No. 31557, which regulates the operation of online gaming and sports betting, 145 authorization requests were submitted by both national and international companies to participate in online gambling.
The Ministry of Foreign Trade and Tourism (Mincetur) hopes that the enforcement of Law No. 31557 and its regulations will provide security to players through responsible gaming policies, as well as formalize the activity. It is estimated that the volume of bets placed in Peru during 2022 was close to S/3.800 billion.
The window for companies interested in operating online sports betting and casino games in Peru opened in February. Companies offering online gaming and sports betting services had to submit their application for authorization to operate online under the terms of Law No. 31557 and were given until March 13 to register.
The law regulating the exploitation of remote gaming and sports betting stipulates that the Ministry of Foreign Trade and Tourism is the national administrative authority responsible for regulating, authorizing, revoking, overseeing, online gaming and sports betting. All companies whether national or foreign, must adapt to the new regulation and comply with the correct payment of the special gaming tax.
