Peru to introduce new gambling laws

The South American nation is updating its gambling industry, although the price is high

Peru made a significant leap forward in its endeavor to regulate the gambling sector by enacting Law No. 31,806 last week, following the introduction of the gambling system in November 2022. This revised legislation tackles various concerns outlined in its predecessor, which notably includes the provision of tax exemption for foreign operators.

Among the notable modifications is a substantial surge in licensing charges, which have been revamped to incorporate a calculation based on either 3% of net earnings or 2.97 million soles (US$816,453), whichever is higher. This is three times the previous rate.

The newly implemented legislation in Peru not only introduces altered licensing charges but also lays the groundwork for an intricate set of requirements for the online segment. Operators must have a physical address in the country and also have to pay 12% of their revenue in tax.

In order to promote fairness, the system introduces stringent know-your-customer (KYC) regulations as well. Consequently, gambling establishments will have the responsibility of confirming the identity, age, and nationality of individuals who wish to partake in gambling activities.

Furthermore, the recently enacted legislation imposes limitations on the range of gambling opportunities. Individuals inclined toward wagering activities within Peru will solely gain the privilege to partake in placing bets affiliated with sports events supervised by either domestic or global teams, federations, or leagues.

The enactment of the new legislation regarding games of chance is set to take effect 20 days after its dissemination in the official gazette, with the anticipated publication date of July 18.