Peru Records Massive Number of Online License Applicants

Following Peru’s decision to enforce Law No. 31557 which regulates online gaming and sports betting operations on February 9, the country has recorded a large number of applications from companies eager to get their hands on one of the available licenses.

Namely, Peru has received no less than 145 license applications for online gambling in the last 30 days. 

The authorization requests were sent from both domestic and international casino and sportsbook operators looking forward to joining the market.

Seven Certification Labs Received Accreditations

On top of the 145 license requests, Peru also registered a total of 144 affiliated service providers while accrediting seven international certification laboratories, including Gaming Laboratories International.

The country also received 184 requests for the homologation of technological platforms, as well as gaming modalities, gaming programs, and progressive systems.

According to the country’s Minister of Foreign Trade and Tourism, Juan Carlo Mathews, the companies submitted their requests “to formalize and obtain the corresponding authorization to continue operating in Peru.”

To Mathews, this was a “clear indication that the regulation of this activity has been successful.”

The minister expects that the recent enforcement of the new law would offer better protection for players with the help of responsible gaming policies and the formalization of the activity. 

Mathews called it “an important step” for Peru to regulate the activity not solely due to the “economic movement it generates and the revenue it will have” but also because of the growing need to provide security to citizens who decide to use the applications.

Estimates speak about a potential volume of bets placed in the country in 2022 of almost S/3.800 billion ($1.029 billion).

Companies that wished to operate online sports betting and casino games in the country were given March 13 as a deadline to send their application for authorization to operate online under the terms of the new law. 

Operators to Pay a 12% Tax on GGR 

Starting April 1, gaming operators will be required to pay a 12% tax rate on their gross gaming revenue.

The Ministry of Foreign Trade and Tourism has also projected that online gaming and sports betting will generate approximately S/162 million ($43.88 million) every year for the country. 

Of the respective tax, 40% will reach the Ministry and be used to manage and supervise the operation of online betting technology while 20% will reach the Public Treasury, another 20% will go to the Ministry of Health’s mental health department, and the remainder will be directed to the Peruvian Sports Institute.

Players’ winnings will not be taxed and the taxes will solely apply to operators.