With a population of 34 million, Peru is the fourth most populous country in South America. This is just one of the reasons why international online casino operators are showing great interest in this country.
In recent months, they’ve gotten at least one more reason to include Peru in their expansion plans. Of course, we are talking about the latest law that regulates online gambling and betting. These new legal acts come from long-term analyses and experiences that the authorities have had in this sector. After a few surprises (pleasant and unpleasant), we can be sure that the new Peruvian law opens the gates wide for online gambling operators worldwide.
Before analyzing it, it would be good to remember what happened before its enactment.
The Pre-Web Gambling Ordeal
Like almost all other countries in Latin America, Peru has a tradition of gambling. Although this activity may not have been as popular as in Europe in the 19th and first half of the 20th century, there were still casinos and betting shops in the capital city of Lima and other places around the country.
This industry experienced a boom after 1979 when the first legal act dedicated to this topic was passed (No. 22215). This led to the opening of hundreds of slot parlors in the country, as well as dozens of casinos. Fiesta Hotel & Casino, WinMeier Hotel & Casino, and Majestic Casino are some players’ land-based casino options. There is also the news from a year ago about the entry into the market of the famous Chilean operator Sun Dreams, which plans to build a resort and casino and take over several post-op casinos in this country.
The Internet Era
With the Internet’s expansion, Peruvian players’ interest shifted to online casinos. Of course, this does not mean they have forgotten about the physical options, but the online versions of casino platforms have started taking more and more of the pie.
At first, the authorities tolerated online gambling. So, there was no express ban, much less punishment for the players. However, faced with increasing funds flowing into foreign online casinos, the government and the assembly decided to pass an amendment to the pending laws regulating these relations. So, in 2008, the government started granting licenses to operators from home and abroad.
The Legal Puzzle
So, one of the most significant changes that have affected online gambling and betting in Peru are the changes since 2008, when the market was partially liberalized. As a result, one of the most famous brands from Europe – Betsson – got the opportunity to legally operate in the country.
Gradually, other brands got the opportunity to appear with their offers on the Peruvian market. The country’s economy benefited from these changes, although some experts objected.
Namely, many pointed out that the procedure for awarding licenses is not too transparent. There were also accusations that domestic operators are being forced at the expense of foreign ones and vice versa or that certain brands are favored.
We all know that behind those accusations was the fear of corruption. Due to increasing pressure from the public and changes in the online casino industry globally, it was more than necessary to pass a new law. It happened in 2022 with the law no. 31557. But even this change did not go without skepticism and accusations.
The biggest problem seems to be the status of foreign casino sites, which, unlike domestic ones, have found a way to avoid paying taxes despite accepting deposits from Peruvian players.
31806 – The Magic Number Arrives
In June 2023, President Dina Boluarte signed off Law 31806, a legal act that should regulate the iGaming scene reasonably. More than 40 operators from abroad who have licenses from foreign agencies and operate in Peru will have to establish companies there.
This change was made with one goal: to avoid these brands’ tax obligations. Now, domestic and foreign online casinos will have to pay the same tax of 11.7% on their profits. Additionally, they must pay annually for the license about $800,000 or 3 percent of the gross profit. Let’s remind our readers that the license cost was three times lower before these changes.
At the same time, the casinos’ obligations regarding the Know Your Customer rules are also increasing. That is, identity checks, especially on the player’s age, will become more rigorous and align according to the rules adopted by the countries leading in this sector on a global scale.
Every licensed operator will get a .pa domain, helping players from this country to recognize these entities easily. Another interesting thing here is that even foreign players can join a round of baccarat and expect to get protection from Peru whenever they experience problems with operators licensed in this country.
Finally, the casinos and sportsbooks operating legally in Peru will get to strike sponsorship deals with sports clubs and athletes. Only licensed operators will get an opportunity like that.
The Spring in Peru’s iGaming Step
It’s too soon to predict what the new law will bring to players and operators, but both sides’ initial reactions are positive. Of course, it won’t surprise us to see amendments to the law soon, but its foundations are solid.
One of the ways to determine whether this regulation will achieve its goals is to check the statistics. So, it’s best to familiarize ourselves with the current state of Peru’s online gambling market.
The projected revenue in this sector in 2023 is set at 277 million dollars, which is way lower than Brazil’s projected revenue of 1,5 billion dollars. Still, we shouldn’t forget that Brazil is a much bigger market and that its new law regarding online gambling was passed earlier.
The initial predictions about the growth of this industry in Peru in the next four years are below 9%. Still, if we consider the changes, we should probably stretch this prediction to over 10%. This is not an unfounded exaggeration because many countries around the world have experienced the same growth once they presented solid regulations in this sector.
According to many sources, the number of online players is growing steadily. Betano is probably the country’s most visited online gambling site due to a strong marketing campaign in the past year. Of course, Betsson is another popular choice for Peruvian players, with almost 10 million monthly visits. Apuesa Total, Bet365, Doradobet, and Inkabet (one of the rare sites on the top 10 list with a .pe domain) are also worth mentioning.
Untapped Market, Ready to Bloom
Undoubtedly, Peru is a new promised land for operators given its latest regulations, young population, and history of positive attitude towards gambling. The combo of sports betting and casino gaming, which many operators have already thrown into the mix together, promises a profitable market in the long run.
Still, the newest and somewhat complex law might need changes and amendments to make this market (even) more attractive.
