New Regulations for Online Gambling in Peru
In 2023, Peru introduced comprehensive new regulations for gaming, including online gambling, marking a significant shift in the landscape for both operators and players. This regulatory overhaul, encapsulated in Supreme Decree 005-2023-MINCETUR, reflects the government's commitment to creating a more controlled and transparent gaming environment.
Enacted by the Ministry of Foreign Trade and Tourism (MINCETUR), these regulations came into force on February 9, 2024. Developed through a public consultation process that received 772 opinions from various stakeholders, including government agencies, gaming operators, and legal firms, the primary objectives of this Decree are to combat money laundering, prevent access by minors and individuals with gambling addictions, and ensure overall transparency within the gaming market. These measures aim to reshape the dynamics of the gaming industry in Peru and promote a safer and more regulated environment for all stakeholders involved.
Revenue Boost
The newly implemented regulations in Peru's online gambling industry are projected to generate approximately S/162 million annually in tax revenue. This substantial influx of funds will be strategically invested in key areas such as tourism, tourist infrastructure, sports, and mental health programs, promoting overall societal benefits. Additionally, these regulations will target the grey market by rendering unlicensed operators illegal, thereby necessitating existing operators to obtain licenses to continue their operations. The overarching goal of these regulatory changes is to enhance legal certainty and transparency within the online gambling sector while providing a significant financial boost to the government.
Market Regulation and Licensing
Following Colombia and Argentina, Peru became the third South American country to regulate online gambling. Within the first 30 days of this law being enforced, the Ministry of Foreign Trade and Tourism (MINCETUR) received 145 applications from operators seeking licenses to join the newly regulated market, along with 144 service providers registered and 184 requests for the approval of technological platforms, gaming modalities, gaming programs, and progressive systems.
According to the new regulation updates, domestic and international operators must:
- obtain a six-year, non-transferable license from MINCETUR to offer sports betting and online gambling services in Peru, and licensed platforms must be registered and approved with compliance certificates from authorized laboratories.
- provide real-time data access to MINCETUR and the tax authority (SUNAT). This includes allowing access to customer data and prize information. Servers used for gambling operations can be located abroad but must be certified by MINCETUR.
Betting and Payment Restrictions
Sanctioned Events Only
Betting is restricted to events sanctioned by recognized national or international sports bodies. This measure ensures that the sports betting market remains fair and credible by relying on officially recognized and regulated sports organizations.
No Cryptocurrency Payments
Cryptocurrency payments are prohibited in sports betting. Bettors are allowed to use cash, credit cards, debit cards, and other conventional payment methods. Prizes can be collected via the player’s chosen payment method or through a Peruvian bank account.
Penalties for Non-Compliance
Operators who fail to comply with the regulations face severe consequences. They can incur fines of up to S/990,000 (around $257,838) and key officials can receive prison sentences of up to four years.
Prohibition for Athletes and Officials
Athletes, coaches, and referees are prohibited from participating in sports betting. This restriction is intended to prevent conflicts of interest and maintain the integrity of sports competitions.
Responsible Gaming and Self-Exclusion
Operators are required to promote responsible gambling practices. They must offer self-exclusion options to players, helping them manage their gambling behavior effectively.
Central Exclusion List
Operators must not allow access to individuals on the central exclusion list, which currently applies to Peru’s land-based casinos and slot halls. This ensures that excluded individuals cannot participate in online gambling.
No Access to Minors
Strict access controls must be implemented by operators to prevent minors from participating in gambling activities, ensuring that only adults engage in sports betting.
Advertising Restrictions
Only licensed operators are permitted to advertise or sponsor sports teams in Peru. These advertisements and sponsorships are subject to certain restrictions to maintain ethical standards in marketing.
Physical Sports-Betting Outlets
Municipalities can issue permits for establishments licensed by MINCETUR. Additionally, no betting location can be within 150 meters of a school, ensuring a safe distance from educational institutions.
Responsible Gaming Measures
To ensure compliance with the evolving regulatory landscape in the online gambling industry, operators must adhere to stringent measures to ensure fair play, player protection, and secure transactions. One of the essential components of these updated regulations is the emphasis on safeguarding players through various mechanisms and verifications. Below is an excerpt detailing some of the recent requirements and standards for operators to maintain the integrity of their platforms and protect the interests of their users.
The introduction of these new regulations in Peru marks a pivotal moment for the online gambling industry, reinforcing compliance, transparency, and responsible gaming measures. By mandating stringent licensing requirements and regulatory oversight, the government has effectively positioned itself to monitor and control the sector more closely, ensuring that operators adhere to ethical and secure practices. This shift not only strengthens the integrity of the gaming market but also protects vulnerable players from exploitation and addiction. The commitment to transparency, data access, and rigorous certification standards reflects a comprehensive approach to industry regulation, positioning Peru as a leader in responsible gaming practices within the region. The combination of these regulatory measures and advancements in technology underscores Peru's dedication to fostering a safe and secure environment for all stakeholders.
In the iGaming sector of Peru, adherence to regional gambling laws is essential for businesses to run smoothly and avoid potential legal complications. Kycaid offers solutions to help operators streamline compliance processes, including automated verification tools such as identity checks, liveness verification, age verification, and AI-powered facial recognition. These tools are engineered to prevent identity theft and fraudulent activities, ensuring that operators can maintain compliance with regional regulations and foster a secure gaming environment.
Reinforce your compliance strategy with Kycaid and explore how we can assist you in meeting Peru’s new regulations.