SPORTS BETTING
Peru – New bill will allow for online sports betting expansion in Peru
By Phil - 11 March 2022
The Ministry of Foreign Trade and Tourism Ministry (MINCETUR) is drafting a bill that would further regulate online sports betting. Minister Roberto Sánchez stated that the bill’s objective was to more fully regulate the offshore betting sector as it generates around S/ 4,500 million soles per year.
The Minister said that urgent measures were necessary so that offshore operators paid taxes and complied with local regulations. New laws would mean better player protection measures as is now being seen in Colombia, Mexico, Argentina, and much of the United States and Europe, he said.
Under new rules MINCETUR would be the new regulatory body for the sector. Licensed operators will have to have a legal representative in Peru and a web domain with the ending .pe to avoid capital flight and prevent money laundering and other crimes.
The proposal also puts in a number of player protection measures and ban non licensed sites from advertising or signing sponsorship deals with local clubs. Those failing to abide by the rules will be fined, could lose their licence, and could be banned from operating in Peru for ten years or indefinitely.
“The MINCETUR draft proposes a direct tax of 12 per cent applied to net income. In the same way, it puts in place a selective consumption tax of 1 per cent on bets paid by the client. As a result a collection is estimated of around 160 million soles per year, which can not only be invested in the reactivation of tourism, but also in public infrastructure works, especially in the promotion of sports,” said Sánchez.
Once enacted, MINCETUR must issue the new regulations within a period not exceeding 90 business days. Companies must then comply within a period of 120 days once the new rules are in place.
Under current rules betting shops are permitted via municipal licence and there is no specific authority that regulates them. The private sector has the right to enter the market as long as the company adheres to Peru’s Civil Code and the terms of their licence as granted to them by the municipal government in the locations where they are licensed. There are around 30 sports betting companies that operate in the country in accordance with local gaming laws. There has been growing impetus to place more federal control over the industry. Locally based sports betting operators such as Betsson, Te Apuesto and Inkabet have created an organisation called APADELA which has been lobbying for a code of ethics, stricter rules against money laundering, self-exclusion programmes and more measures aimed to protect the integrity of sports. New regulations are undoubtedly needed as sports betting via offshore sites stands at around US$450m per year.
