The President of Peru sanctions sports betting and igaming law
President of Peru, Pedro Castillo. Photo: Reproduction / @PresidenciaPeru

Peruvian President Pedro Castillo has officially legalized sports betting and online gambling after Congress voted in favor of the change last month. The law received 91 votes in favor in Congress. There were no votes against.

So the law was signed and published in Peru’s official newspaper, El Peruano, last week. The trend is for the measure to come into effect up to 60 days after its official publication. “Peru is creating a special tax of 12% to collect more than 156 million soles a year, which will be equitably distributed: 40% to the tourism sector, 20% to mental health projects, 20% to sports and 20% to social policies”, said the president.

Under the law, Peru’s Ministry of Foreign Trade and Tourism (Mincetur) will act as the country’s official gaming regulator. The folder will have the power to monitor all local gaming activity, which includes ordering the blocking of URLs and IP addresses that break the law and ensuring that all software and technological hardware used to provide online gaming is working.

The tax rate has been set at 12% of the total tax base, which will be charged monthly. The total tax base is made up of net income less maintenance costs. The tax will be monitored by Sunat, Peru’s customs and tax agency. The maintenance tax will consist of 2% of an operator’s monthly income.

Under the measure, breaking the law can result in a fine of up to SOL200 (about $51.54). Other sanctions include freezing assets or disqualifying the license, for up to 10 years or permanently.

For Mincetur manager, new law encourages responsible gambling

Recently, the head of Mincetur and also a federal deputy, Roberto Sánchez, highlighted that the purpose of the law is “to dictate a responsible gaming policy for the protection of minors and people excluded from participating in games subject to regulation”.

“Responsible and healthy gambling, in a social market economy that mobilizes millions of dollars, is an activity that needs to be taxed. No one can generate profit without paying taxes. The ends, then, are aimed at health, education, the development of tourism and sport”.