Peru’s gambling regulations could be set for an update after the National Congress approved a series of amendments to pending legislation from 2022.
The amendments came off the back of the discovery of several loopholes for potential tax evasion in the gambling regulations passed and signed into law by then-President Pedro Castillo.
A key change within the amendments was the elimination of the loophole that would have helped foreign companies avoid paying headline tax, which was set at 12%.
This specific change was proposed by Lady Mercedes Camones, of the APP party, who stated that “the initiative aims to ensure tax collection, prevent money laundering, verify that customers participate safely in this activity and collect the corresponding tax”.
Further regulatory updates see an increase in the minimum financial guarantee from approved operators, which was initially set at 200 Peruvian tax units, which is roughly $265,000. The fee has been significantly increased to 600 Peruvian tax units, around $800,000, or 3% of annual gross revenue.
Additionally, the new law extends the opportunity for foreign residents and tourists to register and play with Peruvian operators. The provision aims to make the digital gaming space more inclusive, unlike the earlier restriction that only allowed Peruvian nationals to register.
The domain allowance for licensed online gambling operators has also been expanded. Instead of the single permitted domain in the previous legislation, such as bet.pe, licensed operators will be able to use a variety of domain URLs, including ‘.com.pe, .pe, .bet, and .bet.pe’, reducing migration costs.
Former President Castillo, controversially replaced by his deputy Dina Boluarte following a political crisis last winter, signed the gambling laws last July, assuring that it would allow Peru “to have more resources to meet its economic and social obligations”.
