Peru has recently achieved a significant reduction in illegal gambling on digital platforms and mobile applications, reducing unregulated gambling by more than 40% during 2024. This progress is largely due to the entry into force of Law No. 31557.

What does the law say?

In its first article, the law defines that "its purpose is to regulate the operation of remote gaming and remote sports betting and creates the Tax on Remote Gaming and Remote Sports Betting, designates the competent administrative authority, establishes the applicable infractions and sanctions, and exercises the powers of supervision, control, inspection, and sanction within the framework of controls and policies for responsible gaming and the protection of minors and persons excluded from participating in regulated games."

With this regulation, Peru became the third country in Latin America to establish a clear legal framework for online gambling, joining a growing trend in the region toward regulating this activity. The measure has not only combated informality in the sector, but also strengthened consumer protection, guaranteed responsible gaming, and increased tax collection.

Along these same lines, Joe López, CEO of AMG, the organizer of Peru Gaming Show, which will take place on June 18 and 19 at the Jockey Exhibition Center in Lima, explained exclusively to us that "the market in general has changed, as Peru is now a fully authorized and formal market, including remote online gaming and sports betting."

Online gaming regulation in Peru: a key step toward legality

Since the implementation of Law No. 31557, the Ministry of Foreign Trade and Tourism (MINCETUR) has led a comprehensive strategy to oversee digital platforms and applications that offered unauthorized games and betting. Thanks to technological tools and international agreements, unregistered websites were detected, blocked, and sanctioned, significantly reducing their presence in the Peruvian market.

Critical Voices

However, Law 31557 has not been free of controversy since its inception. For example, a legal specialist of the stature of Carlos Fonseca Sarmiento, Managing Partner of Gaming Law SAC and Senior Fellow of the International Masters of Gaming Law (IMGL), explained in an exclusive in-depth interview that “The Law was approved between the cracks and the midnight oil, on July 15, 2022, at 2:13 am. Therefore, it was born with some "factory flaws," which made it necessary to modify it before it came into effect. Thus, Law 31806 was approved, published on June 28, 2023, and subsequently amended again by Legislative Decree 1416, published on September 13, 2024.”

Bet on a regulated and safe market

The regulation has allowed online gambling operators to apply for official licenses, offering their services in a legal and transparent manner. Furthermore, the regulatory framework requires digital security standards, user identity verification, and mechanisms to prevent gambling addiction. All of this is part of a framework of constant modernization of the gaming market.

In this regard, Tomás Galarza, Foreign Trade Analyst at ASAP, explained to us exclusively that "With a regulated and growing market, physical casinos in Peru today have a unique window of opportunity: update machines, modernize rooms, import more modern systems and models, and offer a more sophisticated experience."

In conclusion

With the effective implementation of Law No. 31557, Peru positions itself as a regional benchmark in the regulation of online gaming in Latin America, setting a precedent for other countries seeking to curb the spread of illegal gambling and harness the economic potential of this expanding sector.

 

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