Peru lawmakers to consider draft law linked to online sports betting and iGaming

Peru is moving a step closer to legalized online sports betting and iGaming. The country's Minister of Foreign Trade and Tourism (Mincetur, for its Spanish acronym), Roberto Sánchez, said that a draft law prepared by the agency to regulate online sports betting and iGaming has as its central objective to efficiently regulate this activity, which generates an approximate movement of S4,500 million ($1.2 billion) annually.

He pointed out that it is urgent that these operations be controlled in a comprehensive manner, paying taxes and complying with adequate conditions. These will guarantee safety to users, as well as transparency and responsible gamblingpolicies, as has happened in Colombia, Mexico, Argentina and much of the US and Europe.

In that sense, he explained that the document establishes that the Mincetur is the entity responsible for granting authorizations for the use of technological platforms in games and sports betting. It is also in charge of gaming at physical premises, so companies must be registered in the Single Registry of Taxpayers.

In addition, they must have a legal representative in Peru and a web domain with the ending ".pe." This prevents capital flight and money laundering, the commission of fraud, computer crimes and any other illicit activity.

The preliminary draft indicates that the control of technological platforms will be carried out by physical and logical access, face-to-face or remote. The proposal also prohibits the participation in remotegaming and sports betting of minors and people with gamblingaddiction.

In addition, companies that do not have the respective sectoral authorization will be prohibited from signing advertising or sponsorship contracts. Regarding administrative sanctions, these include reprimand, fines, cancelation of authorization and administrative registration, disqualification for up to 10 years or permanent disqualification.

The Mincetur draft proposes a direct tax of 12% applied to the net win. Similarly, it considers a selective consumption tax of 1% on bets paid by the customer. In that sense, it is estimated an annual collection of around S160 million ($42.5 million), which can not only be invested in the reactivation of tourism, but also in public infrastructure works, especially to promote sports.

It is important to mention that the proposal indicates that after being promulgated, the Mincetur must issue the regulations within a period that does not exceed 90 working days. From the date of entry into force of the standard, companies must comply with the provisions of the legal device within a period of 120 calendar days.

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