Peru Set to Triple Cost of Online Gaming Licences
A new legislation that will establish the legal framework for gambling in Peru was approved by the Commission of Economy, Central Bank, Ministry of Finance, Financial Intelligence Unit and the Congress of Peru this Thursday (25). The new regulation is set to triple the cost of new gaming licences to US$ 808,000.
The Peruvian sports betting association (APADELA) has criticised the previous version of the law for effectively exempting foreign operators from the gaming tariff by only taxing Net Win.
The amended Law No. 31557 now establishes a 12% point of consumption tax and will also end the practice of retail licences. Under the new regulations, points of sale will be required to pay a warranty of US$ 7,000 in order to offer gaming services.
New “Know Your Customer” (KYC) rules are to be included. Players will be required to register to place bets, as opposed to previous practice where many can bet anonymously.
Penalties for non-compliance range from fines, up to four years in jail for culpable individuals and licence suspension or cancellation.
Platforms will be able to offer games of chance on Peruvian URLs (www.bet.pe.bet/.com.pe/.pe).
Once the technical regulations have been approved, the new rules will enter into effect after 120 days.
Public consultation on Peru gaming law
The decision to create new regulations came after a public consultation, which recorded the views of a number of interested parties regarding how best to approach the regulation of the gambling industry in the country.
The process ran from 11 November to 2 December 2022 and 772 contributions were collected from public and private stakeholders. These included the Ministry of Justice and Human Rights, the country’s Financial Intelligence Unit, igaming and sports betting operators, suppliers and individuals.
The Ministry of Foreign Trade and Tourism (Mincetur) published the results of the consultation on the 19th of May.
Amended Law No. 31557
The Peruvian President Pedro Castillo signed the initial Law No. 31,557, which regulated the country’s gambling industry, in August 2022.
Among other measures, the law put the industry under the supervision of Mincetur, established rules for suppliers active in the market, and issued directions for where money raised through gaming taxes should be sent.