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Peru Continues to Revise Gambling Law, Introduces Higher License Fees
Notable organizations continue to amend Law 31557, greenlighting a new regulatory framework in the country
Peru plans to charge more to issue gambling licenses to online casino operators. After approving amendments to its current rules, the country will charge iGaming companies three times the amount it initially planned.
The new rules were approved by several notable bodies, namely the Commission of Economy, Central Bank, Ministry of Finance, Financial Intelligence Unit and the Congress of Peru. The organizations amended Law 31557, greenlighting a new regulatory framework in the country.
The original law was introduced last year, paving the way for regulated gambling in the South American country. It was personally signed by President Pedro Castillo last August and established the initial regulatory framework for the Peruvian iGaming industry. The law appointed the Ministerio de Comercio Exterior y Turismo (MINCETUR) as the regulator and introduced the initial version of the local taxation regime.
Peru Introduced Changes to Its Taxation Regime
As a result of the newly-introduced changes, companies will now have to pay $810,000 for a license. Retail licenses have been removed and, as a result, points of sale will have to pay a warranty of $6,715 to offer gaming.
Furthermore, the new rules introduce a 12% point of consumption tax, which comes after APADELA, Peru’s sports betting association, criticized earlier versions of the law. In previous variants, Law 31557 did not require foreign operators to pay this tax, only requiring them to pay a net win tax.
Speaking of taxes, earlier amendments read that the cash bonus applied to iGaming and online sports betting will continue to serve as the guideline for calculating the tax on such offerings.
Peru Recently Prevented Anonymity in iGaming
Other recently-discussed changes include the introduction of mandatory know-your-customer rules that will allow companies to only take bets from registered customers. Previously, customers could instead remain anonymous.
In addition, regulated operators will be required to offer their products under local domains. These include:
- .bet.pe
- .bet
- .com.pe
- .pe
It was also decided that no new gambling halls should be created within 150 meters of schools and religious buildings. However, existing casinos will be able to continue operating as usual.
Non-compliant companies and individuals risk a variety of fines and may even serve jail time. Violators can earn up to four years in jail, while companies can have their licenses temporarily suspended or revoked.
The new rules are expected to enter into effect 120 days after the technical regulations have been specified. Their introduction follows recent consultations that discussed the regulatory framework.
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Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at Gambling News is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.
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