The Peruvian government recently passed new legislation that legalizes online gambling and sports betting in the country. The law, which was passed in May 2023, also establishes a new regulatory framework for the gambling industry.
The law requires all gambling operators in Peru to obtain a license from the Dirección General de Juegos de Casinos y Máquinas Tragamonedas (“DGJCyMT“).
The cost of a license for an online gambling operator has been tripled, from $10,000 to $30,000 per year. The law also imposes a 12% tax on the net income of all gambling operators in Peru, both domestic and foreign.
The enhanced licensing structure eliminates disparities between retail and online licenses, promoting fair competition. Operators now obtain a unified online license, resulting in a balanced fee structure.
The new gambling legislation is expected to generate $160 million in revenue for the Peruvian government each year. It is also expected to create thousands of new jobs in the gambling industry.
In addition to the general requirements for obtaining a gambling license, the law also includes a number of specific requirements for online gambling operators. For example, online gambling operators must:
- Have a physical presence in Peru. This means that online gambling operators must have an office in Peru and management located in Peru. This requirement is designed to ensure that there is a level of accountability and oversight for online gambling operators.
- Have a team of employees who are located in Peru. This means that the employees must be physically present in Peru and must be able to communicate with players in Peru. This requirement is designed to ensure that players can get help if they have any problems with an online gambling operator.
- Not target minors. Online gambling operators are prohibited from targeting minors with their advertising or marketing materials. This requirement is designed to protect children from the risks of gambling addiction.
- Implement responsible gambling measures. Online gambling operators are required to implement responsible gambling measures to help prevent problem gambling. These measures can include things like self-exclusion, deposit limits, and time limits.
The specific requirements for online gambling operators in Peru are designed to create a safe and regulated gambling environment for players. By requiring online gambling operators to comply with the obligations above, the Peruvian government is ensuring that players can gamble with confidence.
In addition to the specific requirements for online gambling operators, the Law also includes a number of general requirements for all gambling operators in Peru. These general requirements include things like having a sound financial standing, being able to provide accurate financial information, and being able to comply with all applicable Laws and regulations.
Under the law, operators are required to provide a bank letter guarantee as a deposit, ensuring compliance with the license’s terms and conditions. The guarantee amount for the unified license is set at £645,000.
The law provides clarity on offshore taxation, establishing a single 12% point-of-consumption tax for all businesses offering services in Peru. This transparent approach instills confidence in both local and foreign operators, ensuring consistent taxation across the board.
Recognizing the need for flexibility, the regulations allow authorized platforms to choose from domain options such as .bet, .com.pe, .com, or .pe. This accommodates existing platforms and ensures compliance with regulatory requirements. The extended adoption period of 120 days facilitates a smooth transition for operators to align with the new framework.
Peru’s new gambling legislation positions the country as an attractive market within Latin America, joining other major markets such as Brazil, Mexico, Argentina, Colombia, Venezuela, and Chile.
The law applies to all gambling activities, including online gambling, sports betting, and casino gambling. The Law gives the DGJCyMT the power to investigate and prosecute violations of the law and creates a new fund to support gambling-related research and education. It is a major development for the gambling industry in Peru and as so it is expected to have a significant impact on the industry in the years to come.
How we can help
In the ever-evolving landscape of Peru’s gaming industry, operators face a multitude of challenges and uncertainties with new regulations. Our seasoned team of legal experts is at the forefront of the gaming sector, equipped with comprehensive knowledge and unparalleled expertise to guide operators through these complex regulatory waters.
We understand that compliance with new regulations is crucial for success, and that’s why we pride ourselves on offering tailored solutions to navigate the changing gaming landscape seamlessly. At Porat Group, we take the time to understand your unique needs and aspirations, crafting personalized strategies that enable your business to thrive in the face of challenges.
With our finger on the pulse of the industry, we provide cutting-edge insights and astute legal advice, ensuring your operations remain fully compliant with the latest regulatory requirements.
Embark on a journey towards prosperity and stay ahead of the game with Porat Group’s unwavering support. Together, we’ll not only navigate the new regulations but also unlock a world of opportunities in Peru’s dynamic gaming landscape.