Peruvian President Pedro Castillo has made sports betting and iGaming legal in his home nation. Castillo signed off on the new law on Friday evening, introducing gambling market regulation and a 12% tax on sports wagering and online betting profits.
the state will dole out the tax funds to multiple sectors
According to Peruvian news agency Andina, the state will dole out the tax funds to multiple sectors, such as tourism, health, and sports. Castillo stated that the amount of cash flowing into state coffers per year would equal around S/156m (US$40m).
The inked law sailed through the country’s Congress in July with 91 votes for and none against.
Government bodies in control
The Peruvian president addressed local media Friday, outlining how his government’s executive branch and Congress had set up a regulatory framework to control gambling operations “in a comprehensive manner.”
Castillo also said the state would control the payment of taxes like it does in “[…] Colombia, Mexico, Argentina, as well as a large part of the United States and Europe.” According to iGaming Business, Peru’s customs and excise body Sunat will oversee the tax aspect.
Mincetur will oversee all betting activity
The new law places responsibility for licensing, regulating, and sanctioning on the Ministry of Foreign Trade and Tourism of Peru (Mincetur). As Peru’s official gambling regulator, Mincetur will oversee all betting activity, a remit that includes “ordering the blocking of URL and IP addresses that infringe upon the law.”
The department must also ensure that online betting software and hardware is in working order.
National newspapers also reported on the penalties for breaking the gambling law, with fines capped at S/200 (US$51.33). Other punitive tools include the power to freeze assets and disqualify license holders for “up to 10 years or permanently.”
As reported by Andina, Castillo said the new law would benefit Peru, labeling it “an important step in the formalization of activities that used to operate without any type of control until today.”