Peru’s Ministry of Foreign Trade and Tourism (Mincetur) has approved rules that will regulate sports betting and iGaming allowing the government to impose taxes on all online gambling businesses that operate in the local market.
Supreme Decree No. 005-2023 was published yesterday, a decree which approves the regulation of Law No. 31557 modified by Law No. 31806. The initial law 31557 was approved in late 2022 by the previous government while a new amending law 31806 was introduced and approved by Congress in July of 2023.
The purpose of both laws is to implement a tax of 12% on the net profits of all online betting operators including both sportsbooks and online casinos.
The new tax laws will come into force 120 days from publication on February 9th, 2024. The law also states that in the 30 days following the implementation of the law, all online gambling operators must request official operating authorization from the Ministry. Any that do not apply for authorization or that have been refused a license must exit the market immediately
The latest data published by the Ministry revealed that there are roughly 50 online sportsbooks currently operating in Peru with the market valued at approximately US$1 billion.
Minister of Foreign Trade and Tourism , Juan Carlos Mathews said:
“The rule will allow the Peruvian State to collect close to S/162 million (US$42 million) annually, to be invested in the reactivation of tourism , tourist infrastructure works, promoting sports and attending to mental health programs. The tax will apply to national and foreign online gaming and betting companies.”
He added:
“This result is of utmost importance as it demonstrates the coordinated work carried out by Mincetur with transparency, predictability and openness, considering that all actors involved in the issue participated in the process of developing the regulations.”
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.