Posted on: June 2, 2022, 08:36h.
Last updated on: June 2, 2022, 08:58h.
Peru is rapidly advancing its plans to shape the country’s sports betting and iGaming markets. After recently presenting legislation to carve out regulations, more progress has arrived through the Ministry of Foreign Trade and Tourism.
Peru’s Minister of Foreign Trade and Tourism, Roberto Sánchez, proposed a bill on Wednesday to effectively regulate sports betting and online gambling. In pitching its plan, it asserted that the combined industry is worth at least $1 billion a year.
Bill No. 2070, which the Ministry prepared and the government already approved, aims to regulate these activities remotely so that they are taxed in public accounts. The bill is inspired by other models, such as those in Colombia and Argentina.
Throwing Out the Revenue Net
During the Foreign Trade and Tourism Committee of the Congress, the urgency for these games and bets to be “carried out with integrity, honesty, transparency and equal treatment” was highlighted. That’s while protecting vulnerable groups of the population and avoiding electronic fraud was also emphasized.
In addition, according to Sánchez, if the government’s proposal is approved, it will receive around S160 million per year (about US$43 million). This can be invested in the reactivation of tourism, in addition to public infrastructure works and promotion of sport.
The government of President Pedro Castillo is clear that this activity must be regulated for the benefit of all Peruvians. It is important to highlight that this project of the Executive has contributions from the national and international private sector: a clear example of the impulse to attract private investment,” said Minister of Foreign Trade and Tourism Roberto Sánchez in a statement.
The government proposes that, of the 100% of the proceeds from the Gaming Tax, 40% go to the public treasury and 20% to the Peruvian Sports Institute. The remaining 40% would become part of the Ministry of Foreign Trade and Tourism’s budget.
The measure incorporates legal, technical, and economic provisions for the authorization, control, and supervision of technological platforms for remote sports betting. This will enable the creation of a formalized set of policies and procedures.
The bill also includes provisions for the prosecution of illegal gambling. In addition, it establishes access controls and verifications of the player’s identity and age.
COVID-19 Becomes Catalyst for Change
The Ministry of Foreign Trade and Tourism explained that in recent months, face-to-face sports activities are being reactivated. This is a result of the COVID-19 pandemic, and exponentially causes the volume of money in bets to increase.
In the context of the pandemic and the closure of face-to-face gambling facilities, authorities estimate that virtual sports betting had an increase of close to 50% in Peru.
With the introduction of the legislation by the Ministry, Peru is now only steps away from fulfilling its mission. It’s close to joining other LatAm countries in building a successful online gaming industry.
Other countries, including Brazil, are right behind. As a result, the LatAm gaming market will be worth $3.6 billion next year, according to industry analysis. This is $1.4 billion more than it was four years ago. As the other countries join, the figure will likely climb exponentially.