Peru Overhauls Gambling Law: Massive Hike in Online Licence Costs
Peru has approved significant changes to its gambling regulations, most notably tripling the cost of new gaming licenses to Sol2.97m ($808,000/£652,000/€753,000).
This is another massive regulatory development in South American betting markets.
New Regulations Passed
Last night (25 May), key Peruvian entities – the Commission of Economy, the Central Bank, the Ministry of Finance, the Financial Intelligence Unit, and the Congress of Peru – approved the new rules, establishing a fresh legal framework for gambling in the South American country.
The amended Law No 31557 introduces a 12% point of consumption tax. The Peruvian sports betting association (APADELA) has previously criticized the law for effectively exempting foreign operators from the gaming tariff by only taxing net win.
End of Retail Licences
The updated law also puts an end to the practice of retail licenses. Moving forward, points of sale will need to pay a warranty of Sol24,750 to offer gaming services.
New KYC Requirements
The overhaul also includes the introduction of new Know Your Customer (KYC) requirements. Bettors will now need to register to place bets, in contrast to the previous system where many could bet anonymously.
Penalties for non-compliance have been stipulated and can range from fines to up to four years in jail for culpable individuals, and license suspension or cancellation.
Peruvian URLs for Gaming Platforms
Under the new regulations, gaming platforms can offer games of chance on Peruvian URLs (bet.pe /.bet / .com.pe/ .pe). The new rules are set to enter into effect 120 days after the approval of the technical regulations.
Public Consultation on Peru Gaming Law
This significant shakeup of the regulations followed a public consultation, which recorded views from various parties on the best approach to regulating the gambling industry.
The ministry of foreign trade and tourism (Mincetur) published the results of this consultation on 19 May. The process ran from 11 November to 2 December and collected 772 contributions from public and private stakeholders.
History of Law No 31,557
In August 2022, the Peruvian President, Pedro Castillo, signed the initial Law – No 31,557 – which regulated the country’s gambling industry. The law placed the industry under the supervision of Mincetur, established rules for suppliers in the market, and issued directives for the allocation of funds raised through gaming taxes.