The technical and regulatory prerequisites for gambling operators who want to provide their services in Peru are outlined in the comprehensive document formally known as Supreme Decree 005-2023-Mincetur.

The implementation of the country’s gaming law is slated to occur 120 days after the regulations are released. This implies that operators have a restricted time frame to adhere to the revised guidelines.

It is the first time that this important economic activity has been regulated in the country. In South America, Peru becomes the third country to regulate it, after Colombia and Argentina, in the provinces of Buenos Aires, Córdoba and Mendoza.

said minister of foreign trade and tourism Juan Carlos Mathews.

From 9 February 2024, new regulations will come into force in Peru’s gaming market. Operators already operating in the market will have a month to apply for a license, which means that businesses have until 10 March 2024 to apply. Not applying within this period could lead to a fine of at least S/ 742,500 and up to S/ 990,000 (€245,394/ £212,401/ $257,838).

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The ministry also cautioned that failing to apply for a license could result in criminal prosecution and a ban on gaming operations by the government.

The regulations will allow the Peruvian State to collect close to S/ 162m annually, to be invested in the reactivation of tourism, tourist infrastructure works, promoting sports and attending to mental health programs.

We also make it clear that it will not affect betting and the payment of prizes. The money won as a prize will be collected in full. The tax will apply to national and foreign online gaming and betting companies.

he added.  

772 opinions were received from both public and private actors during the public consultation process which resulted in the publication of regulations. These included submissions from institutions such as the Ministry of Justice and Human Rights, the Ministry of the Economy and Finance, and Peru’s Financial Intelligence Unit. Gambling Regulations Approved Peru

In addition, gaming operators, suppliers, legal firms, and international consulting firms also participated in the consultation. To further gather input, Mincetur held meetings with professionals from various sectors, including the public and private sectors, unions, and technology providers.

This result is of utmost importance as it demonstrates the coordinated work carried out by Mincetur with transparency, predictability and openness, considering that all actors involved in the issue participated in the process of developing the regulations.

added Mathews.  

Source: iGB

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A 12% point of consumption tax is established by Law No. 31557 in its revised form. The earlier version of the law was criticized by the Peruvian Association of Sports Betting (APADELA) for essentially exempting international operators from the gaming tax by simply taxing Net Win.

The use of retail licenses was likewise abolished under the new law. In accordance with the new rules, points of sale will have to pay up a warranty of US$ 7,000 before they can provide gaming services.

There will be new Know Your Customer (KYC) regulations. Instead of the current situation where many gamble anonymously, players will need to register in order to place bets.

Fines, up to four years in prison for guilty persons, license suspension, and cancellation are all possible penalties for non-compliance.

Games of chance will be available on platforms using Peruvian URLs (bet.pe/.bet/.com.pe/.pe).

The new regulations will go into effect after 120 days following the technical regulations’ approval.

Public Consultation on Peru gaming law

A public consultation that compiled opinions from various interested parties on the best way to regulate the gaming sector led to the revision of the legislation.

The findings of the consultation were released by the Ministry of Foreign Trade and Tourism (Mincetur) on May 19. 772 contributions from both public and private parties were gathered through the process between November 11 and December 2. 

These included the Financial Intelligence Unit of the nation, the Ministry of Justice and Human Rights, iGaming and sports betting companies, suppliers, and private citizens. 

Law No. 31,557

The original Law No. 31,557, which governed the nation’s gaming business, was signed by Peruvian President Pedro Castillo in August 2022.

The law, among other things, established rules for market participants and specified where gaming taxes should be active. It also placed the business under the control of Mincetur.

Source: iGB

The post Peru to Triple Cost of Online Gaming Licenses appeared first on iGaming Amerika.