Peru’s regulation of sports betting and iGaming from a game provider perspective

New Gambling has long been a popular activity in Peru, and the regulatory framework governing it has evolved significantly over the years to ensure fair play, transparency, and economic benefit. In this article, Danuta Janicka-Mierzwa, Deputy Head of Sales at BETCORE, sheds light on the latest regulatory changes in Peru and how it impacts the iGaming market now.

New regulations in the Peruvian gambling market

Since the introduction of Law No 31557 in 2022, followed by its amendment through Law No 31806 in 2023 and the recent implementation of Supreme Decree No 005-2023-MINCETUR, Peru has established a comprehensive regulatory framework for sports betting and online gambling.

The legislation sets out detailed requirements and operational guidelines for both physical establishments and online platforms, ensuring a structured policy environment for various operators and stakeholders. These regulations align with Peru's existing laws on casinos and slot machines, providing a consistent legal foundation for the growth of sports betting venues across the country.

The development of this regulatory framework reflects ongoing national discussions that prioritize social oversight, tax structures, public health, and consumer protection, incorporating self-regulatory measures from within the industry.

Key highlights include:

• Economic Stability and Investment: The legal framework upholds economic principles enshrined in Peru’s Political Constitution, such as a buoyant exchange rate, unrestricted transfer of funds abroad, and stringent financial compliance measures. This creates a favorable environment for foreign investors to repatriate their earnings smoothly.
• Corporate Structure Options: Foreign companies can choose between establishing a branch or a subsidiary in Peru. A branch allows a non-domiciled parent company to operate directly, while a subsidiary, complying with local regulations, can offer more corporate flexibility and tax transparency.
• Tax Considerations: The new regulations are designed to facilitate foreign investment without imposing impractical or burdensome requirements. Unlike Brazil's recent move to require foreign sportsbooks to establish local headquarters, Peru does not mandate a local tax domicile, provided that the entity complies with the national legal framework's alternatives for tax domicile.
• Regional Leadership: With these updates, Peru positions itself as a leader in the regulation of sports betting and online gambling not only regionally but also internationally. The country’s proactive approach, supported by robust legislative and regulatory measures, showcases its commitment to a fair, open, and well-regulated market.

Live game producer perspective

As a producer of live and virtual games for both online and retail markets, and having a long-standing presence in Peru, we at BETCORE are keen to understand the implications of these regulations for our operations. After consultations with legal service providers left us with more questions than answers, I decided to delve deeper into the regulations to determine our best course of action.

The regulations empower MINCETUR to register technological platforms and their partners, online gaming programs, live casino games, sports betting terminals, and related service providers. Additionally, the regulations address advertising restrictions and terms for responsible gaming.

As an online game provider, we are required to homologate our game programs and systems. It is preferable to support the homologation with a certificate or a license.

Local legal firms often approach online game producers in a funny manner, initially presenting only the legal costs as if they were the sole expenses involved. It is only through more in-depth discussions that one discovers the total cost of the endeavor is significantly higher, particularly for those whose products are neither certified nor licensed (as the process will require the certification and homologation of the software).

However, for those with games certified by GLI or holding an MGA license, entering the market is much simpler and more cost-effective. It merely requires registration of the company as a provider, and homologation of the software –
a process that can be facilitated by a local operator with whom the company partners.

The game provider also has 90 days during which can deliver their services without homologation. This gives a game provider time to establish their position on the market and at the same time pass through the legal procedures.

Conclusions

In general, Law No. 31806 sets out detailed requirements and operational guidelines mainly for physical establishments and online platforms, ensuring a structured policy environment for various operators and stakeholders. Peru's regulatory framework is designed to balance effective tax collection with operational viability, promoting economic activity and encouraging foreign investment through intelligently crafted legislation. The goal is to create a thriving, competitive market that attracts global operators while safeguarding public interests and maintaining fiscal integrity.

For international online gambling operators and game producers, Peru continues to offer an inviting landscape for foreign investment. The legal framework guarantees equal treatment for foreign investors, supported by a stable economic environment that includes a floating exchange rate, market-driven financial practices, and unrestricted remittance of profits abroad.

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