Legislation
Peru – New online sports betting bill makes progress in Peru’s Congress
By Phil - 17 May 2022
The bill that regulates online sports betting has now been approved unanimously by the Economy Commission in Congress.
According to the latest draft, a percentage of revenue generated by sports betting will be earmarked for Peruvian sports with funds administered by the National Superintendence of Tax Administration (SUNAT).
During the debate Diana Gonzalez the author of the project highlighted that Peruvian sports had received less from the budget each year since 2019 and, due to the pandemic, the income that the Peruvian Sports Institute received directly -through income generated by slots and casinos had seen a sharp decline.
“For this reason, this initiative favours the promotion and financing of sports activities and our athletes,” explained Gonzalez, who added that online sports betting is not currently regulated in Peru. According to government estimates, in 2018 around 1,800 million soles (just over US$472 million) was generated via offshore sites none of which was taxed.
“This bill seeks to raise more resources for the State, for the benefit of the population and, in particular, of national athletes who need more support to represent us,” said Congresswoman Gonzales.
According to the draft project: “Operating authorizations will be valid for six years, and may be renewed from six months before their expiration. Meanwhile, the Financial Intelligence Unit (UIF) of the Superintendence of Banking, Insurance and Pension Funds will be in charge of supervising sports betting activities. In addition, a guarantee amount and conditions will be established, which must be paid to cover prize payments, fines and taxes.”
In March The Ministry of Foreign Trade and Tourism Ministry (MINCETUR) announced that it was drafting a drafting a bill that would further regulate online sports betting. 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 bans 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. 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.
