Regulators in Peru Set to Introduce Changes to the Gambling Law
Led by the Congress of Peru, the key stakeholders in the Peruvian gaming sector have announced changes to the framework of regulated gambling in the country, including a proposal to triple the cost of an online gaming license to $808,000.
The new rules that have been approved follow a public consultation with contributions from all parties in the gaming industry. The consultation period received more than 700 contributions from organizations, including the Commission of Economy, the Central Bank, the Ministry of Finance, iGaming and sports betting operators, and suppliers.
There are several changes that the stakeholders believe will improve gambling regulation in Peru. The new regulatory amendments will be made to gambling Law No 31,577, which was originally signed into law by the president of Peru, Pedro Castillo, last year in August 2022.
During the consultation process, the Peruvian sports betting association (APADELA) pointed out that the previous system saw operators pay tax on the net win, which benefited foreign gaming operators. To address this issue, there will be the introduction of a 12% point of consumption tax.
One of the big amendments to the gambling law will be that an operator must pay a warranty of more than $8,000 to offer a point-of-sale gaming service. This move will see an end to retail licenses.
Another change is the KYC rule which will stop operators from taking bets from anonymous customers and will require that players must register with operators before engaging in gambling activities with gaming operators.
The new amendments are expected to take approximately four months to be implemented, and the regulators indicate there will be a variety of penalties for organizations that do not comply, ranging from fines, gaming license penalties, and in the most serious breaches possible, prison sentences.
Another amendment is the establishment of a supervisory body that is to be responsible for overseeing providers in the industry and taking control of the revenue collected through gambling taxes and the distribution of these monies.
Influence on Gamblers in Peru
For Peruvian gamblers, these changes will bring both advantages and additional responsibilities. While the new regulations aim to create a fairer and more transparent gambling environment, players will need to go through the registration process and ensure compliance with KYC requirements.
As regulatory changes are implemented, it is crucial for gamblers and operators alike to stay informed and adapt to the new landscape. Peru's gambling sector is evolving, and these amendments mark an important step towards a more regulated and accountable industry.