Tomás Yelmini
In a previous report, we told you that online sports betting is legal in Peru. But a new year has begun, and we bring you a new update, starting with a review of the previous article regulations. So, get ready to learn all about sports betting in Peru.
We won’t go over the historical details already explained in the note mentioned above, so if you haven’t read it yet, we invite you to take a look at it and come back here to find out how things stand in the early days of 2023.
What is the situation of sports betting in Peru on January 2023?
Not very encouraging, to begin with: last November 13, the Ministry of Foreign Trade and Tourism (Mincetur) had published the draft regulation, which remained open to opinions and comments until December 2. Once this deadline is met, the Executive Branch now has until January 2023 to approve the final regulations. In other words, once that is done, it will take about 60 more days for it to become effective.
That means you can bet online from Peru, and companies also have the green light to continue their operations. However, these would only pay taxes in the first quarter of 2023.
The political instability (which led to the departure of the then president Pedro Castillo), plus the strikes, protests, repression and violence affecting the southern part of Peru, means that reviewing this type of regulation, which is the responsibility of the Executive Branch, is relegated to a third or fourth place.
It should be recalled that Law 31,557 provides for the creation of the “tax on remote gaming and remote sports betting”, which is equivalent to 12% of net income, i.e., winnings. This tax must be paid by each company on a monthly basis and will be administered by the National Superintendence of Customs and Tax Administration (Sunat).
According to official estimates, some $42,126,880 would be collected annually from sports betting and online casinos. Of this money, 20% will go to the public treasury; another 20% to the Ministry of Health for the promotion of mental health; a third 20% to the Peruvian Sports Institute (IPD); and the final 40% to the Ministry of Tourism (Mincetur).
What are the Requirements for an Online Gambling Company to Operate in Peru?
Once the final regulations of Law 31.557 are published, companies interested in operating in Peru must:
- Request authorization from Mincetur, which may revoke, supervise and sanction those companies that violate the Law.
- Establish a physical branch, if it is a foreign company, otherwise it will not be authorized.
- Once authorized, online platforms will use the domain with the extension “bet.pe”.
- In the case of physical branches, municipalities may only grant licenses with prior approval from Mincetur, and such premises may not be less than 150 meters away from schools.
Each license shall be valid for six years, and shall be renewable for the same period. Mincetur has counted 14 online sports betting sites that have Peruvian bettors. However, there are about 50 bookmakers accepting bids from the Inca country.
More Information
Together with Brazil, Peru is one of the countries with the highest number of gamblers in Latin America, according to a study by the consulting firm Sherlock Communications, which calculated that around 150,000 bets are generated daily, most of them made by men between 20 and 45 years of age.
Now you have a better overview on the situation of sports betting in Peru, and its future in terms of regulation. It will not be an easy year, but the sector hopes that the Law will be published and will begin to raise funds for the State. Of course, at JefeBet we will keep you updated on what happens in our News section.
