“The gambling industry could be divided into 4 areas,” begins Carlos Fonseca Sarmiento, lawyer, arbitrator and Master in Public Administration and Constitutional Law , CEO and Managing Partner of Gaming Law SAC and principal member of the International Masters of Gaming Law (IMGL).

He then elaborates on the idea: “First, the land-based casino and slot machine sector, which was impacted by the pandemic and new technologies, is expected to maintain or shrink its market share as younger generations show more interest in remote gaming. Second, the remote betting sector experienced a boom with Law 31557 and its amending regulations, generating 120 gaming licenses (60 for remote gaming operators and 60 for remote sports betting operators). However, this number has now decreased to 91 gaming licenses (44 for remote gaming and 47 for remote sports betting), following the usual trend of market concentration after legalization. Therefore, more mergers and acquisitions and a reduction in the number of licenses are expected. Third, the lottery sector continues to grow. Previously, only La Tinka existed , but now competitors like El Torito and Lotobola have emerged , primarily due to the flexible legal framework.” Lotteries where it is only necessary to sign a contract with a Charity Society with the approval of the Ministry of Women ; finally, the fourth sector made up of other gambling games, where new players appear such as predictive markets, social casinos and promotional games organized by influencers.”

The future of the gambling industry in Peru

What trends  in the gambling industry in Peru do you consider most relevant for this year?

“In 2026, the fourth sector mentioned in my previous response will experience a boom: the concentration of remote gambling games and more open competition in the lottery market. The major flaw in Peruvian legislation is that not all gambling games receive the same regulatory and tax treatment. This leads to distortions. For example, a single-user electronic gaming machine or terminal could be classified as a slot machine, a video lottery, and, depending on the game's content, even as a terminal for a remote sports betting site. The final decision rests with the General Directorate of Casino Games and Slot Machines (DGJCMT) of the Ministry of Foreign Trade and Tourism (MINCETUR ), but until it clarifies the technical boundaries of each gambling game category, situations may arise where investors seek the most advantageous regulatory framework for their products”.

How do you expect this market to evolve in the next 3 to 5 years?

“Technology and artificial intelligence make it difficult to project beyond a year. The dynamism of this market and its dependence on technology mean that the landscape is constantly changing. It's essential to be disruptive and continuously adapt to technological advancements. The regulatory framework also plays a role . If there were a general law covering all gambling games or if there were changes in taxation, the market would be reconfigured. But what is clear is that land-based gambling is declining while remote gambling is growing. This trend is irreversible”.

The controversial Legislative Decree 1416

In an interview with SoloAzar last year, you were particularly critical of the Selective Consumption Tax applied to remote gambling and sports betting. Do you believe there are aspects of Legislative Decree 1416 that could be modified?

“These taxes cannot be modified; they must be modified, as they constitute a gross violation of the constitutional principles of legality, equality, and non-confiscation, enshrined in Article 74 of our Constitution. Taxes are created and modified by a law. Operators of remote gambling services are currently paying this tax by virtue of a resolution issued by the tax authority (SUNAT). Numerous injunctions have been filed on this matter, and ultimately, the Constitutional Court will have the final say through constitutional channels. However, the Congress of the Republic may correct this error, which originated with the Executive Branch. Congress has already approved the amendment to Legislative Decree 1416, but former President Boluarte vetoed it, and its direct approval by Congress through a veto is pending, following the procedure established by our Constitution. We hope this happens soon, as a constitutional challenge can also be used to halt this process”. 

What could be the legal consequences of maintaining a tax that you consider constitutionally unsustainable?

“That many operators, as has indeed happened, are closing their operations in Peru. A tax on turnover or betting is confiscatory and therefore economically unsustainable. The major problem is that officials at the Ministry of Economy and SUNAT (the Peruvian tax authority), representing the Executive Branch, are unfamiliar with this sector and consistently make mistakes when designing tax policy. The simplest solution is to open a dialogue with business owners in the sector. There is no taxation without representation, and the easiest way to design taxes in this sector is with the active collaboration of those who will be responsible for paying them”.

In closing, is there anything else you consider important to highlight for our readers about the future of the gambling market in Peru?

"First, this sector encompasses not only games of chance but also a broader area: betting games (the outcome of which can depend solely on chance but also on the player's skill). Second, regarding remote gaming, remote sports betting, casino games, and slot machines, Peru currently has one of the most recognized authorities worldwide. The current Director General of Casino Games and Slot Machines was chosen as the best gaming regulator of the year globally in 2025 and will host the annual meeting of the International Association of Gaming Regulators in 2026. Finally, Peru's major advantage in this sector is its free competition regime. If one meets all the requirements, one can obtain a gaming license for any betting game that requires it. For some, a special license is not even necessary, but ultimately, it is the market and the consumer who decide who stays and who goes. In Peru, there are no monopolies or oligopolies, nor is there a limited number of licenses. You also don't need "connections" to obtain a gaming license. Everything is very transparent. In my experience working in all Latin American countries, Peru currently remains the country with the most stable, transparent, and competitive regulations in the region" .