Peru cleanses error-ridden gaming legislation

Peru’s President, Dina Boluarte, has promulgated amendments to the South American nation’s online gambling law in the hopes of removing drafting errors in the initial proposal.

Almost a year after the hurried passage of the flawed online gambling law by Peru’s Congress, Law 31806 is now nearing legislative integration. This law aims to address the clarity and scope issues that were present in the greatly anticipated, initial legalisation.

These amendments and corrections state that companies in Peru’s current grey market now have a revised 120-day window to obtain a licence allowing operations within Peruvian borders legally.

This has been the subject of many concerns as the stringent timeline has left many operators in fear of a temporary withdrawal of operations.

The new laws are possibly even more stringent, modifying the penal code to penalise the operation of gambling or betting activities without a licence with a prison sentence ranging from 1 to 4 years in length.

The Peruvian grey market

Peru’s current gambling market, although predominantly composed of soon-to-be illicit activity in the form of Peru-facing external operators, has been on an exponential rise and garners revenues into the billions.

These new regulations are expected to come into full effect in July at the earliest, with the objective of generating a projected PEN160m or $44 million annually, from the newly established market.

These funds are to then be diverted to support initiatives that include, tourism reactivation projects, infrastructure works, sports promotions and mental health programmes.

The sector will also see a tripling of the upfront licencing fee for Peruvian operators to the tune of nearly $800,000, along with authorising bets from foreign nationals residing in Peru.

Some concessions have also been made in favour of legal operators, such as no longer requiring the certification of payment processors and the provision of multiple domain names for the use of newly licenced platforms.

SiGMA Asia

Set your sights on Manila this July as we invite you to immerse yourself in a PAGCOR-endorsed event that promises an extraordinary exploration of the Asian and Philippine gaming markets. Prepare for an exhilarating experience as we delve into in-depth discussions on gaming regulation, industry trends, and the boundless possibilities that lie ahead.