.svg)
Peru’s gambling regulator has finally completed its assessment of licensing applications and issued a total of 120 licences to 60 online gambling operators.
The gaming regulator within Peru’s Ministry of Tourism (MINCETUR) confirmed the end of the licensing process in an August 19 industry notice, marking the end of a months-long transition period.
Exactly half of the licences awarded by the regulator are for sports betting, while the other 60 are for online casino games to be offered by a wide range of international and Peruvian operators.
The numbers in Peru eclipse those of the neighbour it hoped to emulate, Colombia, which has just 15 licensed online gambling operators.
Peru’s low taxation rate and industry-friendly approach to regulation appears to have made it a popular new market opportunity for operators.
Speaking at the SBC Summit nearly a year ago in Barcelona, Gonzalo Perez, the CEO of leading Peruvian operator Apuesta Total, praised the regulator for being “open to us, they listen to us very carefully … of course, you do not have all that you want, but it is getting very close to what we expect”.
He later went on to say that Peru’s regime, at times, seemed to be “too good to be true”.
Peru’s headline tax rate for online gaming and sports betting is 12 percent of gross revenue, although an additional proposed selective consumption tax is still under debate.
By contrast, neighbouring Brazil’s effective tax rate will be at least between 23 and 26 percent depending on the municipality where the operator is headquartered, while the proposed rate in a pending bill in Chile hovers at about 38 percent.
Peru’s legislation is not without its flaws, as it is still unclear how operators not domiciled in Peru are going to pay their taxes.
Lima-based lawyer Nicolas Samohod Rivarola told Vixio GamblingCompliance in June that “the issue is not very well defined” as the relevant forms for online gambling have not yet been published. He confirmed to Vixio on Tuesday (August 27) that those issues still have not been resolved.
The regulator’s review process has also been unexpectedly slow, with government officials originally saying that all licences would be granted by the end of April.
In total, 145 licence applications were submitted, according to a statement from MINCETUR. Licences last for six years and are renewable.
According to Samohod Rivarola, operators now must register their sports betting and online gaming platforms and present the regulator with bank guarantees or a surety insurance policy.
The regulator’s notice also stated that registered suppliers must ensure that they no longer provide services to unlicensed operators in Peru, while officials also now intend to implement protocols to block access to illegal gambling websites and apps.
