Peru is set to become the latest South American nation to launch an online gambling and sports betting marketplace, following the government’s promulgation of Law No. 31806.
Announced by the National Gazette, Law No. 31806 was approved to modify Peru’s existing Gambling Law by establishing a regulatory framework for online gambling and sports betting transactions.
The Law has been forwarded to President Dina Boluarte for its formal sign-off and is expected to come into force within the next 120 days.
In 2023, Congress called for an update of the Gambling Law, deemed necessary to rectify tax evasion loopholes, as Peru had no formal policies for foreign or domestic online gambling businesses.
The law was passed with overwhelming support in Congress on 25 May, and aims to ensure tax collection, prevent money laundering, promote safe participation, and establish equality for all companies in this sector.
This directive prompted the government to draft Law 31806 to modify and update Peru’s Gambling Law on technical measures, tax, market protections and approved payment systems.
MINCETUR – Peru’s Ministry of Trade and Tourism – has been charged with overseeing the regulatory transition of Peruvian gambling and will control licensing for “technology platforms for remote gaming/sports betting, gaming programs, and systems”.
As previously announced, Peru will update its tax policy on gambling, and foreign and domestic businesses will pay “11.7% of revenue as a tax charge”.
Further fiscal requirements will compel each licensed operator to guarantee a minimum tax contribution of 600 Peruvian tax units (circa $500,000) or 3% of the operator’s annual gross revenue.
Technical provisions will make MINCETUR responsible for granting ‘authorised .Pe domains’ to licensed gambling businesses.
Operators that acquire the MINCETUR license will be permitted to enter into sponsorship agreements with the sports sector and will be responsible for controlling the identity and age of platform users.
Peru will enforce strict penalties for unauthorised gambling operations, including prison sentences of up to four years.
Licensed sports betting operators will only be allowed to take bets on professional events sanctioned by a national or international sporting body, federation, or league.
Of significance, new amendments will permit foreign residents and tourists to register and play with Peruvian operators. This provision aims to make the digital gaming space more inclusive, unlike the earlier restriction that only allowed Peruvian nationals to register.