Peru: Law modifying iGaming regulatory framework and taxing foreign gambling operators is enacted

The Peruvian Government decided to enact Law 31.806, which modifies certain aspects of the law that regulates online gambling and sports betting, placing the same level of taxation on all betting operators, whether foreign or Peruvian, and thus ensuring a greater tax collection.

The law, published in the Official Gazette with the signature of President Dina Boluarte, establishes that the companies that operate online games and sports betting -or remotely, according to the text-, domiciled both in Peru and outside the country, will be taxed with a 12% tax on their net income (net win).

The enactment of Law 31.806 comes after the Vice Minister of Tourism, Madeleine Burns, announced in an interview with Yogonet that the Ministry of Foreign Trade and Tourism (Mincetur), whose head is Juan Carlos Mathews, had given her opinion in favor.

At that time, the Peruvian official considered that it is now necessary to make official and publish the regulations of Law 31.557, which regulates the online sector in Peru and which was modified by the recently enacted law. "With that, we would go on to regulate the changes implied by these amendments," she said.

Madeleine Burns, Peru's Vice Minister of Tourism

It should be noted that this regulation was approved by the Peruvian Congress last May 25 with 105 votes in favor and was proposed by the congresswoman Lady Camones and promoted by different unions affected by Law 31.557.

Among other aspects modified by the law, is the obligation that the operation of the online gaming and betting technological platforms must be carried out through the use of the domain with the extension ".bet.pe", ".bet", ".com", ".pe" or ".com.pe" obtained from a public or private entity or organization responsible for granting the domains with the extensions referred to above, provided they have the corresponding authorizations granted by the Mincetur.

Another change is linked to the cost of the online license, which will be tripled and will go from 200 UIT to 600 UIT (which at current values represents about $740,000). The text eliminates the need for a retail license, meaning that betting agencies and points of sale do not pay the guarantee of 5 UIT (more than $6,000).

Additionally, it establishes that the registration of players is mandatory, so that the operation of anonymous bets will no longer be allowed, and the crime of illegal operation of sports betting games and online games will be incorporated into the Criminal Code, with a prison sentence of one to four years.

Finally, the law also imposes fines and a ban on operators who do not comply with the law and extends the time for its enforcement once the technical regulations have been approved, from 60 to 120 days.

Access here to read Law 31.806, which modifies the regulatory framework of the online sector in Peru.