Lima, Peru - The Peruvian Ministry of Foreign Trade and Tourism (Mincetur) has announced a significant reduction in the availability of illegal online gambling platforms and applications, claiming a 40% decrease in supply. The regulator attributes this success to intensified oversight and enforcement efforts implemented since the introduction of comprehensive online gambling regulations.

The update from Mincetur, responsible for governing the gambling market in Peru, was released on Friday, coinciding with just over one year since Law No 31557, which regulates online sports betting and gaming, came into effect.

Since the implementation of the regulatory framework, the Peruvian market has seen considerable interest from international operators, including major players such as Stake, Rush Street Interactive, and Betsson. Mincetur has officially authorised 60 technology platforms to operate within the regulated space and has registered 280 related service providers, indicating a formalisation of the digital gaming ecosystem.

In addition to fostering a regulated environment, the regulator asserts substantial progress in combating black market operations. Mincetur reports having removed 15% of identified illegal gambling websites operating within Peru and, as mentioned, has successfully cut the overall supply of illegal online gambling services by 40%.

This achievement is credited to the actions of Mincetur’s General Directorate of Casino Games and Slot Machines (DGJCMT). The DGJCMT has reportedly “intensified its oversight, closing illegal establishments and promoting coordinated actions to reduce the presence of clandestine platforms.” Furthermore, the authority has proactively engaged with payment institutions to facilitate the blocking of transactions and services directed towards illegal gambling operators active in Peru.

Peru’s Ambition to Lead LatAm Gambling

With the enactment of Law No 31557, Peru became one of the first countries in Latin America, following Colombia and Argentina, to establish clear and formal regulations for online betting. Mincetur views this as positioning Peru as a “regional benchmark” for gambling regulation.

According to the Ministry, “This regulation has allowed the digital sector to be formalised, fostering an environment of trust for both operators and users. It has also opened up new investment opportunities, boosting the digitalisation of entertainment and strengthening the country’s tax collection.”

The formalisation extends beyond the digital realm, with 683 new sports betting venues having been registered since December of the previous year, bringing the national total to 4,516.

Alongside market formalisation, Mincetur has also rolled out new initiatives aimed at promoting responsible gambling. These include awareness talks targeting gambling addiction in educational institutions and specialized training programmes for betting companies. “Collaboration with gaming associations reinforces the commitment to protecting vulnerable groups and ensuring a safe and responsible gaming environment,” Mincetur added.

Consumption Tax Sparks Concern in Peruvian Gambling Industry

Despite analyst predictions positioning Peru to become the third-largest online betting market in LatAm, a significant concern persists within the industry regarding the reintroduction of a consumption tax on betting turnover.

The current rate stands at 0.3% on every bet placed. However, this rate is scheduled to increase to 1% starting from 1 July this year, adding pressure to operators’ margins.

Gonzalo Perez, CEO of prominent local operator Apuesta Total, has voiced concerns that this consumption tax, when combined with the existing 12% GGR (Gross Gaming Revenue) tax, could effectively double the overall tax burden on licensed betting companies.

This potential increase in tax could inadvertently incentivise both players and operators to revert to the black market. Speaking to iGaming Times, Nicolás Samohod Rivarola, head of gambling and betting at the Vidal Caceres law firm in Peru, commented on the situation: “It would take the tax impact on [licensed operators] to high and burdensome levels, bordering on unconstitutional.” He added, “And it would make many [stakeholders] think about evaluating their [presence] in the Peruvian market.”