The Republic of Peru recently passed Law No 31,806, which makes significant changes to its gaming legislation. The revised legislation intends to fill flaws in the existing statute, which accidentally exempted foreign operators from paying taxes. Significant changes in the new laws include increased license prices and the adoption of a point-of-consumption regime. Furthermore, the bill increases consumer protection measures by instituting know-your-customer (KYC) standards and placing prohibitions on sports betting. These revisions will go into effect 20 days after they are published in the federal gazette on July 18.
The updated regulations will result in considerable increases in license costs for operators. The new fee system mandates that operators pay 3% of their net income or Sol2.97 million, whichever is greater. This is a threefold increase over the previous price of Sol990,000, with the goal of ensuring that operators contribute fairly to the country’s tax revenue.
The implementation of a point-of-consumption policy marks a significant shift in Peru’s gaming scene. All internet gambling companies operating in Peru must now use a Peruvian domain address, such as (.bet.pe/.bet/.com/.pe/.com.pe). Furthermore, the law imposes a 12% tax on the revenue generated by these operators.
The new regulations compel operators to employ comprehensive know-your-customer (KYC) procedures in order to prioritize consumer safety. These safeguards include confirming the identity, age, and nationality of those who use gambling services, resulting in a safer and more responsible gaming environment.
The modified law restricts sports betting by allowing bets only on sporting events linked with national or international sports associations, federations, or leagues. This rule tries to protect sports’ integrity by preventing potential match-fixing and corruption.
Another significant modification in the statute concerns sponsorship regulations. Only licensed businesses can now sponsor teams or events, guaranteeing that sponsorship activities are carried out legally by authorized operators.
With new laws likely to take effect soon, businesses may be assessing the opportunities afforded by the Peruvian market. Several foreign brands are already present in the country, including Betsson-owned Inkabet and Bet365. Domestic operators such as Te Apuesto and Betara are also present in the market. TGM Research performed a poll in 2022 and discovered that Inkabet had a high level of market awareness among Peruvian customers.
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