Peru’s Ministry of Foreign Trade and Tourism (MINCETUR) has released draft regulations to govern online gaming and sports betting, with a window of 21 calendar days for operators, suppliers and the public to submit comments on the proposed rules.
Peru’s online gambling law enacted in August granted MINCETUR a period of 120 working days to publish implementing regulations establishing licensing regimes for online gaming and betting platforms, as well as physical sports-betting outlets.
“We have not waited for the established timeframe to end,” said tourism minister Roberto Sánchez in a statement announcing the consultation on the draft rules.
“Now, for 21 days, the draft regulation is at the disposition of all interested parties and operators in this area, so they can give us their feedback, have a discussion and we can receive their recommendations.”
Peru’s legislation has drawn sharp criticism due to apparent errors in the text, following its hasty approval after midnight during a congressional session in July.
Specifically, the law appeared to offer a tax loophole because it allows for both Peruvian companies and foreign operators to apply for licences, but only makes the former liable to pay gaming taxes set at a headline rate of 12 percent of gross gaming revenue.
In the draft regulations, however, all foreign companies would have to establish a Peruvian subsidiary to apply for a licence and all bets would be considered to have occurred in the country.
The draft rules will enable local and international operators passing financial and background reviews to obtain licences lasting for a term of six years, but their platforms must be certified every two years. A decision should be taken on licence applications within 30 days, while licensed operators will then have a period of 90 days to connect to a central monitoring system overseen by MINCETUR and its gaming regulatory division, the DGCJMT.
Another notable feature of the draft regulations is a requirement for all service providers, including software suppliers and media companies, to be registered with MINCETUR within 60 days of signing a contract with a licensed operator. Payment gateways would also need to be registered and certified for compliance with international data security standards.
Elsewhere, the 53-article draft regulation sets out various operating requirements, including several non-controversial provisions related to advertising, as well as the powers of MINCETUR and DGCJMT to inspect operations and issue fines for non-compliance.
The 21-day window for suggestions on the draft regulation will close on December 2.