Peru's Online Casinos and Sports Betting Are Close to Commencing Operations
Published on November 16, 2022, 09:55h.Last updated on November 16, 2022, 10:36h.
Erik Gibbs
Expertise: Gaming Business, Global Gaming, Asia Pacific Gaming
Erik Gibbs
Peruvian authorities have made a significant stride in the world of online casino and sports betting, finally putting an end to the long-awaited legislation that had been in limbo since August.
Legalizing Online Gambling and Sports Betting
In August 2022, the Peruvian legislature passed a law to authorize online gambling and sports betting. As with any legislation, a three-month delay ensued, but November 2022 marked the end of that pause.
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Roberto Sánchez, the Minister of Foreign Trade and Tourism (Mincetur), announced that draft regulations for the new gaming laws have been made available. These regulations govern the operation of remote games and sports betting, aiming to generate more tax revenue for the country.
Mincetur's General Directorate of Casino Games and Slot Machines has invited operators, suppliers, and other gaming-related entities to share their insights before making the regulations official.
The Gaming Regulations
The proposed regulations include 53 articles covering various aspects, including:
Asia Pacific Gaming,
- General provisions
- Activity authorizations
- Technological platforms
- Certification laboratories
- Supplier registration, and more
Online gambling and sports betting are estimated to generate around US$1 billion annually in Peru, according to Mincetur. However, the country had yet to collect the 12% Special Tax on Gambling that has been paid by casinos and slot machines for two decades. The new regulations address this gap and facilitate tax collection.
The new regulations also mention that Mincetur is the only administrative gaming authority at the national level, responsible for overseeing all aspects of online gambling and sports betting. Additionally, free bets and demo play will not be permitted under the new regulations.
Interested parties have until December 2 to provide their input on the proposed regulations. Based on projections, the government expects to collect PEN160 million (US$41.58 million) per year in tax revenue. Sixty percent of this revenue will be split between the public treasury, the finance ministry, and government health initiatives, while the remaining 40% will support tourism development.
Gaming Business,
Mincetur Scandals
While Mincetur works towards legitimizing online gambling, its director, Roberto Sánchez, faces accusations of unethical practices. Sánchez allegedly demands bribes to maintain employment and has also been accused of extorting money from political candidates. An investigation into these allegations is currently underway.
A Resolution for Casino Disputes
Amidst the controversy, a resolution ending a long-standing conflict between casino workers and Dreams, a major operator, is a welcome development. The two sides have reached an agreement, with Dreams reinstating 25 workers who had been terminated for joining the union.
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The agreement strengthens social dialogue, providing a foundation for addressing future conflicts and fostering a stronger relationship between the union and the casino operator.
Enrichment Insights:
Regulatory Framework
approved legislation to authorize online gambling and sports betting. As with most laws, it required a three-month delay, which has now ended.
In August 2022, Peruvian legislators passed a law approving a comprehensive regulatory framework for gambling activities. The law came into effect in February 2024, with the licensing process and technical approvals following suit.
Key Developments and Timeline
February 2024 marked the commencement of the licensing regime and technical approvals. Operators began launching services in Peru in 2024, with PlayUZU leading the way. Companies like Altenar are currently preparing to expand their operations in Peru, obtaining necessary approvals for sports betting platforms in 2025.
Current Regulations
Mincetur is the only administrative gaming authority at the national level. It will be responsible for overseeing all aspects of online gambling and sports betting. Free bets and demo play are also off the table with the new regulations. Interested parties have until December 2 to provide their input on all of the suggestions.
Operators must comply with stringent regulations, including technical standards specific to Peru, ensuring seamless user experiences while meeting local requirements. The regulatory framework is expected to foster market growth and attract more operators, with a focus on consumer protection through regulated services.
The news about Peru's online casino and sports betting legalization was published by Erik Gibbs on November 16, 2022, at 09:55h. (div with class 'posted_at')
The new regulations for online gambling and sports betting in Peru include 53 articles and cover various aspects such as technological platforms, certification laboratories, and supplier registration. (sentence containing 'div with class 'panel__author' and 'figcaption')
The controversial Director of Mincetur, Roberto Sánchez, faces allegations of unethical practices, including demands for bribes and extortion. An investigation into these allegations is currently underway. (sentence containing 'Asia Pacific Gaming' and 'Global Gaming')
