Posted on: June 2, 2022, 8:36 a.m.
Last update: June 2, 2022, 8:58 a.m.
Peru is making rapid progress in its plans to shape the country’s sports betting and iGaming markets. After recently introducing legislation to set out regulations, further progress has been made through the Ministry of Foreign Trade and Tourism.
Peru’s Foreign Trade and Tourism Minister Roberto Sánchez on Wednesday proposed a bill to effectively regulate online sports betting and gambling. Presenting his plan, he claimed that the combined industry was worth at least $1 billion a year.
Bill 2070, which the ministry has prepared and the government has already approved, aims to regulate these remote activities so that they are taxed in public accounts. The bill is inspired by other models, such as those of Colombia and Argentina.
Cast the income net
During the Committee on Foreign Trade and Tourism of the Congress, the urgency that these games and bets be “conducted with integrity, honesty, transparency and equal treatment” was underlined. This is while protecting vulnerable groups of the population and avoiding electronic fraud was also emphasized.
Additionally, according to Sánchez, if the government’s proposal is approved, he will receive around 160 million shillings per year (about $43 million). This can be invested in the revival of tourism, in addition to public infrastructure works and the 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 executive project has contributions from the national and international private sector: a clear example of the impetus to attract private investmentsaid Foreign Trade and Tourism Minister Roberto Sánchez in a statement.
The government proposes that, of the 100% proceeds from the gaming tax, 40% should go to the public treasury and 20% to the Peruvian Sports Institute. The remaining 40% would be part of the budget of the Ministry of Foreign Trade and Tourism.
The measure incorporates legal, technical and economic provisions for the authorisation, control and supervision of technological platforms for remote sports betting. This will allow for 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 a catalyst for change
The Ministry of Foreign Trade and Tourism explained that for the past few months, face-to-face sports activities have been reactivated. This is a result of the COVID-19 pandemic and is causing the volume of money in betting to increase exponentially.
In the context of the pandemic and the closure of face-to-face gambling establishments, authorities estimate that virtual sports betting has seen an increase of almost 50% in Peru.
With the introduction of the legislation by the ministry, Peru is only a few steps away from fulfilling its mission. It is set to join other Latin American countries in building a thriving online gambling industry.
Other countries, including Brazil, are just behind. As a result, the Latin American games market will be worth $3.6 billion next year, according to industry analysis. That’s $1.4 billion more than four years ago. As more countries join, the number will likely grow exponentially.