The Ministry of Foreign Trade and Tourism (Mincetur) has finally approved the regulations of Law No. 31557 which regulates online gaming and sports betting.
Head of Mincetur Juan Carlos Mathews, welcomed the news saying that the new regulations put in place “a cutting-edge standard” which would provide improved player protection measures.
The new regulations will come into effect in 120 days time on February 9, 2024. Between February 10 and March 10, 2024, all those companies wishing to operate in Peru online must apply for a licence to Mincetur.
Those that do not register within that period will not be able to continue to operate in Peru, will face fines, and will be banned from operating in that country. More seriously they will also be subject to criminal charges. Article 243-C of the new bill imposes prison sentences on those found to be operating online casino games or sports betting without proper authorisation from one to four years in jail.
All companies whether national or foreign, must adapt to the new regulation and comply with the correct payment of the special gaming tax, which from April 2024 will begin to be applied for online sports betting and online sports betting games. The tax stands at 12% of the net profit.
“The money won as a prize will be collected in full. The tax will apply to national and foreign online gaming and betting companies,” Mathews said. “It is the first time that this important economic activity has been regulated in the country. In South America, Peru has become the third country to regulate it, after Colombia and Argentina (in the provinces of Buenos Aires, Córdoba and Mendoza).”
The approval of the new online regulations marks the latest development in what has been a long and complex road to regulation in Peru. Law 31557 was signed by then President of Peru Pedro Castillo in August 2022 putting the newly regulated industry under Mincetur. However, Law 31557 in its previous form had come under criticism as it only would have applied to those operators with a physical presence in Peru. This meant that locally based operators would be at an unfair advantage once the online gambling bill went into effect.
As a result lawmakers went about improving the bill. Law No. 31806, which modifies Law No. 31557 on online gaming and sports betting, was enacted in the Official Gazette of Peru, after obtaining the signature of President Dina Boluarte in July.