Pedro Castillo promulgates the Law regulating online gambling in Peru
On August 12, the Peruvian head of state promulgated the Law regulating the exploitation of online gambling and sports betting. After its approval in Congress the enactment of the Law means that online gambling is definitely legal in Peru. The highlight of the new law is the 12% excise tax on companies in the sector. Peru is thus following in the footsteps of the successful model launched in Colombia. Chile will be the next Latin American country to regulate online gambling.
With the promulgation of the Decree Law by President Pedro Castillo, distance gaming and betting are officially legal in Peru. ©Eduardo Garcia/Unsplash
Remote gaming is regulated in Peru
During a ceremony that took place at the Government Palace and with the presence of several ministers as well as other representatives of important Peruvian institutions related to sports and health, President Pedro Castillo promulgated the law that regulates the exploitation of remote sports betting and online gambling in the Andean country. This will allow the government to start collecting taxes from an activity that generates a large economic movement .
In front of the attendees the Peruvian president stresś that the approval of the standard “it is a clear example that when the Executive and the Legislative work hand in hand, when we put the interests of the country ahead, when we prioritize the agenda that the population needs, in that line, we can promote growth, development for the benefit of all citizens” . The enacted law had been passed in Congress last July after several legislative proposals were put on the table and debated.
As in the Colombian case, the Peruvian government expects obtain significant income thanks to the 12% tax model% that will affect the companies in the sector regulated by MINCETUR, the Ministry of Foreign Trade and Tourism, the administrative entity that will be in charge of granting licenses and regulating the exploitation of online gambling and betting.
It is estimated that up to 156 million soles could be raised per year in concept of taxes which would be destined to different initiatives in the fields of health, sport and for the development of tourism.
The Peruvian president pointed out the positive effects of a law that benefits the country as a whole and stressed the need for companies that make profits in Peru to comply with their tax obligations:
“This is a law that will benefit the country, because on the one hand it will allow the State to have greater resources to fulfill its obligations in economic and social matters, which will result in better living conditions, and on the other because it represents an important step in the formalization of activities that until today operated without any type of supervision.” – Pedro Castillo , President of Peru, in official government press release
The following steps
After the publication in the Official Journal El Peruano from the decree approving the regulations of the Law, it will enter into force in the following 60 days, while the MINCETUR entity will have a period of 120 days to regulate the law.
The first step to take will be the authorization of operators applying for an official license and the blocking of all platforms not authorized by MINCETUR.
