Peru to Legalize Online Gambling and Sports Betting
The government of Peru has promulgated Law 31806, which will legalize online gambling and sports betting in the country. The new legislation has been sent to the desk of president Dina Boluarte for sign-off and is expected to enter force within 120 days.
The law, which has been published in the national gazette, modifies existing gambling law to create a regulatory framework for an online market. The National Congress had judged new legislation to be necessary to close tax loopholes since there was no formal framework for the regulation of online gambling businesses. It aims to ensure tax collection from online gambling while preventing money laundering and promoting safe participation.
Peru’s Ministry of Trade and Tourism (MINCETUR) will oversee the launch of the new regulations and will license platforms and systems for remote gaming and sports betting and will grant .pe internet domains to businesses.
Both foreign and domestic online gambling businesses will be taxed 11.7% of revenue, with a minimum payment per operator of 600 tax units (around $500,000) or 3% of the annual gross revenue.
Licensed operators will be allowed to sponsor Peruvian sports. Sports betting will only be permitted on professional events sanctioned by a national or international sporting body, federation, or league.
Operators will have responsibility for controlling customers’ identity and age. A late amendment to Peru’s online gambling legislation will allow foreign residents and tourists to gamble. There will be strict penalties for unlicensed gambling operations, including prison terms of up to four years.
