Peru: Ministry of Foreign Trade and Tourism releases draft of the law to regulate sports betting and iGaming

The Peruvian Ministry of Foreign Trade and Tourism (Mincetur) published on Friday the draft regulation of the law that regulates the operation of online games and sports betting. From the said portfolio, they expect to receive comments and suggestions from the private sector regarding this document within 21 calendar days, until December 2.

The General Directorate of Casino Games and Slot Machines, ascribed to Mincetur, thus opened the Public Regulatory Consultation of the draft regulation of Law 31557, which regulates remote gaming and sports betting.

It is worth mentioning that such regulation was approved by the Peruvian Congress in mid-July and enacted by the Executive in August of this year. The text, which received the positive vote of 91 parliamentarians with no votes against, established a direct tax applied to the Net Win of 12%.

The draft regulation includes 53 articles that cover general provisions, authorizations for the activity, technological platforms, certification laboratories, registration of suppliers, obligations, prohibitions for operators, and penalties, among other aspects.

In this context, the head of Mincetur, Minister Roberto Sanchez, stated that this regulation constitutes an initiative "worked to initiate tax collection in this activity". "Now, for 21 days, the pre-regulation is at the disposal of all the actors and operators in the area, so that they may give feedback, engage in a dialogue, and we may have their suggestions as well", he said.

📢¡Importante! El ministro @RobertoSanchP anunció que se ha publicado el proyecto de reglamento de la Ley N° 31557, que regula la explotación de juegos y las apuestas deportivas a distancia.⚽📱🎰🎲

Más información aquí👉 https://t.co/mTouxlRzFN#SiempreConElPueblo pic.twitter.com/lT8paZbwLX

— MINCETUR 🇵🇪 (@MINCETUR) November 13, 2022

Representatives from Mincetur added: "As it is known, the activity of remote gaming and sports betting generated around one billion dollars a year in our country without paying the Special Gaming Tax (12%), as casinos and slot machines have been doing for the last 20 years. For this reason, as an initiative of the government of President Pedro Castillo, Mincetur worked on a bill that allows for its regulation and formalization".

"The law will allow the State to collect 160 million soles per year ($ 41.8 million), which will be invested as follows: 20% will go to the public treasury; 40%, to the development of tourism; 20% will go to the promotion of mental health; and the remaining 20% to the tax authorities", the Peruvian Government pointed out.

Concerns

It should be noted that, after its approval by Congress, the Peruvian Sports Betting Association (APADELA) expressed its concern and criticized that the regulation does not oblige all operators in the sector to pay the same tax. "Congress exempts the payment of this tax to around 100 foreign companies that do not have offices in Peru, but operate in the country through their digital platforms", they objected.

For his part, the lawyer and president of the Peruvian Association of Entertainment and Gaming (APEJA), Constante Traverso, also criticized the approved law because "it contains errors that must be corrected". "However, the decision is political and, unfortunately, we cannot assure absolutely nothing," Traverso said at the time.

Click here to read the draft regulation of the law to regulate online gambling and sports betting in Peru.