"Regulation of Remote Gaming and Remote Sports Betting in Peru": Conference at PGS 2025

First figures: the weight of a consolidated industry

At the beginning of his presentation, lawyer Constante Traverso highlighted the economic and social impact that the gaming sector has had in Peru for more than three decades. ‘The tradition of gambling in Peru is already more than 30 years old and it has been a real success, bringing many benefits and prosperity’, he said.

As for the most representative data, and in terms of investment, he cited an estimated figure of 700 million dollars in 2019, the product of a joint study with Mincetur.

On taxation, he indicated that the sector contributed around 300 million soles annually through special taxes. ‘Although it represents only 0.2% of national revenue, it is comparable to taxes such as the ITF or the RUS,’ he said, noting that gaming revenues directly finance key institutions such as Mincetur, the Peruvian Sports Institute and the Ministry of Health.

Traverso also highlighted the work of Mincetur and the importance of its investment in Peru's tourism.

Legal framework for remote gambling: progress and challenges

In addressing the central axis of his presentation, he presented a tour of the legislative process that gave rise to the regulation of sports betting and remote gambling in Peru. ‘This is a project that was born, it could be in 2017 or 2018, and that was maturing within the Directorate of Casino Games of the Mincetur, with a very skilled and committed technical team,’ he remarked.

The speaker recalled that, after sustained work, the first law on sports betting and remote gaming was approved on 13 August 2022. Months later, adjustments were made to the text and, finally, in September 2024, the regulation was enacted, which ‘maintains international standards and responds to a technical logic’, said. He praised the work of Mincetur as a regulator: ‘We consider it to be one of the best in the region’.

However, he also pointed out some specific criticisms of the current regulations, such as the high level of requirements to enter the market:

‘A guarantee regime of 600 UITs is established to operate remote gambling, which has become a barrier to entry for many companies’.

Taxes and regulatory excesses in debate

‘The central part of my presentation will focus on consumption,’ said Traverso, referring to the new tax approved by the executive branch, outside the original design of the law. He explained that this tax was not contemplated in the current terms in the initial project, and its application ‘is causing a lot of damage to the operation, so we hope that it will be corrected soon’.

He also questioned the regulatory instability affecting the sector: ‘Since the first law in 2022 until today, eight projects have already been presented in Congress, most of them without technical support, which only generate uncertainty and slow down investment’.

Despite these difficulties, the lawyer highlighted the process of implementing the law as a ‘tremendous success’, acknowledging the technical work of the Mincetur's Gaming Directorate. ‘The deadlines were short, but they were excellently met,’ he said, and detailed that to date, 108 authorisations have been granted to operate gambling:

- 108 authorisations to operate gambling

- 4,699 registered betting parlours

- 88 approved gaming platforms

- 294 linked services programmes

- 551 gaming programmes and 331 modalities, including live casinos and progressive systems

All these procedures, he said, were carried out digitally through a platform developed by Mincetur's own management.

Another significant fact given by the speaker was that in April and May, revenue from sports betting and remote gaming already surpassed that of casinos and slot machines.

For Traverso, this market behaviour confirms the growing importance of online gambling, but also underlines the urgency of adjusting the tax framework to avoid distortions that ‘make the operation unviable’.

Critical closure: tax burden and lack of legal certainty

Finally, Traverso insisted that the main obstacle to the development of online gambling in Peru is the disproportionate tax structure.

"Taxing the tax base on the stake, instead of the net income, is a technical nonsense. The same amount of money can circulate and multiply in bets, but it is still the same initial investment".

He also stressed that the inability to deduct bonuses and promotions such as welcome bonuses creates an unnecessary cost overrun for operators.

Added to this is an environment with a high tax burden, legal uncertainty and a state policy aimed at discouraging gambling, which according to the lawyer ‘has no legal or constitutional basis’.

"They accept that taxes are confiscatory, but argue that they seek to discourage gambling. We are licensed operators, evaluated, and yet we have to face this kind of policies".

Proposal

Traverso concluded his presentation by highlighting the social role of the sector in supporting more than 260,000 families, which, he said, ‘must be taken into account when designing a fairer and more sustainable tax system’. He also highlighted the key role played by MINCETUR as a strategic ally to achieve the implementation of public policies that promote an adequate regulation of gambling, recognising it as a legitimate form of entertainment for the Peruvian people.

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