Peru takes a step forward with online gambling legislation

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Posted on: May 16, 2022, 8:11 a.m.

Last update: May 16, 2022, 10:25 a.m.

Peru is about to introduce online sports betting in a bid to boost its economy. The Economics Committee of Congress has unanimously approved a bill regulating the activity.

Peruvian sports betting
Peruvian online sports betting is about to become a reality. A bill that would authorize the activity is moving through the Peruvian Congress. (Picture: Pinterest)

Deputy Diana Gonzáles presented the bill, which proposes to regulate sports betting on the Internet or other communication channels.

During the session, held at the Legislative Building, the legislator argued in favor of her initiative. She indicated that this would allow Peruvian and national athletes to benefit from the economic activity. The bill will now head to Parliament for further discussion.

Online sports betting in the future of Peru

Gonzáles explained that this bill will formalize sports betting, which will help prevent crimes such as money laundering. It will also provide greater support for Peruvian sports through taxes the government may collect.

The initiative comes as national sports organizations in Peru receive smaller budgets each year. Additionally, Gonzáles argues that online sports betting is unregulated in Peru. Therefore, there is no tax revenue. She said that in 2018, the unregulated sports betting industry in Peru was worth around 1.8 billion soles ($475.87 million).

The proposal indicates a total of 12 sanctions in case of violation of the rule. These range from a fine of up to 50 ITUs, suspension of activities for up to 36 months, permanent cancellation of the license and disqualification for up to 10 years. ITU is a type of fiscal unit which is currently equal to S4,600 (US$1,216).

Of this amount, the government received no percentage. Even at just 3%, Peru would have received over $14 million. For a country where about 19% of its population lives in poverty, that money would go a long way.

Peru takes the game to its next logical step

To a large extent, the success of the casino and gambling sector in Peru is due to a regulatory framework that is clear, precise and easy to implement. This legal formalization has attracted many investors, both national and foreign, who see in this sector an interesting potential for generating income.

The Peruvian government, aware of the importance of recognizing, formalizing and regularizing the gambling sector, has developed a strict but clear legal framework. It allows interested companies to develop the activity in complete legal certainty, while offering players more assurances. However, online casinos and online sports betting remain absent.

Peruvian regulations in this area clearly distinguish between gambling and betting. The law defines as a game of chance that which is based on simple chance to determine the profit of the player. This includes slot machines, lotteries and casino games, such as bingo, roulette and others.

On the other hand, gambling games require skill, knowledge and talent. Betting is regulated by Law 10345 dating back to 1945, but it only attempted to introduce the activity. Sports betting, on the other hand, is regulated by article 1942 of the Peruvian Civil Code, and there are no major restrictions on the exercise of this type of activity.

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