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Peru is Poised to Become the Next Online Gambling Breakout Success
By Shane Addinall Mar 21, 2024 LegalityWith the race to find the most innovative ways to engage players and grow their support base, online casino operators are always on the hunt for the next big thing. With Peru opening its doors to legal online gambling, it is poised to make waves in 2024.The global adoption of online casinos and betting has been fantastic for residents of those markets looking for safe and secure online gambling entertainment. It has meant better bonus offers, deposits and withdrawals via trusted local banking mechanisms, and access to safer gambling tools and support.
Where it has begun creating challenges is for online gambling operators, who need to increase their market share and player activity to prove to shareholders that the business is growing. Rather than only doubling down on mature markets, savvy casino businesses are constantly on the lookout for up-and-coming markets.
The Sleeping Giant Awakens
For the past few years, South America has been referred to as an online gambling sleeping giant. The region has a large swathe of wealthy citizens, a growing middle class, decent internet access, and widespread mobile penetration. Still, it has been hampered by slow legal processes and limited banking options.
However, Peru, a country in western South America, has passed legislation to open its digital borders to international online casinos and sports betting operators.
Juan Carlos Mathews, Peru’s minister of foreign trade and tourism, said:
Quote“This is an important step that Peru is taking to regulate this activity, not only because of the economic movement it generates and the revenue it will have, also because of the need to provide security to citizens who enter and use these applications.”
The Mincetur gaming law, more formally known as ‘Supreme Decree 005-2023-Mincetur', was enacted on 9 February 2024. It makes Peru only the third country in South America, alongside Colombia and Argentina, to license online gambling.
The document outlines the local gambling sector's technical and regulatory framework, which includes the promise of swift and unrelenting legal action against unlicensed casinos which target its residents.
A Flood of Online Casino Interest
Within thirty days of Law No. 31557 being written into force, Mathews revealed that the regulatory office had received 145 license applications from both local and international casino businesses.
In addition to operators looking to offer games of chance legally, Mathews' office also received 184 applications from casino software developers and gambling platform providers.
The market also confirmed that it has signed agreements with seven global gambling certification and accreditation service providers, including the highly recognised Gaming Laboratories International (GLI).
The Price of Doing Business in Peru
The gambling regulator clarified that it intends to profit from international casino owners rather than players. While estimates put the country’s projected earnings at around Sol162 million (€40.4 million), Mathews clarified that this would come from taxes and fees, not player wins:
Quote“We also make it clear that it will not affect betting and the payment of prizes. The money won as a prize will be collected in full. The tax will apply to national and foreign online gaming and betting companies.”
In addition to the licensing fee, which tripled from its original value to Sol2.97 million (€740,000) per operation, the regulator announced that its annual Gross Gaming Revenue fee has been set at a very reasonable 12%.
Understanding that black market casinos will always try their luck, the regulator announced that its initial fines for transgressing gambling sites would be Sol990,000 (€246,857), which it will pair with criminal prosecution as it sees fit.
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