Peru Pushes To Amend Online Gambling Law Amid Turmoil

February 8, 2023
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Peru’s launch of online gambling is up in the air due to political instability, but preparation continues apace as operators welcome draft legislation that would improve tax and other provisions enacted last year.

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Peru’s launch of online gambling is up in the air due to political instability, but preparation continues apace as operators welcome draft legislation that would improve tax and other provisions enacted last year.

The statement of the Peruvian Association of Sports Betting (APADELA) came in the wake of a roundtable session on Bill 3595/2022 on January 30.

Gonzalo Pérez, CEO of Peruvian online operator Apuesta Total and a member of APADELA, told VIXIO GamblingCompliance that the new bill satisfies many of their concerns.

“We are pushing for modification because it’s unfair for local operators. We have to pay taxes and international operators don’t,” he said at the ICE London expo on Tuesday (February 7).

The corrective bill was first proposed in November, and mainly modifies the tax provisions of Peru’s August 2021 online gambling bill, which passed into law in controversial circumstances.

APADELA, which represents operators including Betsson, Betcris and Apuesta Total, expressed misgivings with others in the industry over the law in the aftermath of Congress’ rush to approve the bill in a midnight session on July 15 last year.

That legislation was an amalgamation of multiple proposals, and was passed so quickly that errors and contradictions remained in the text.

Particularly serious problems arose from Article 40, which establishes who will pay an excise tax of 12 percent on gross revenue.

The bill left out any explicit reference to operators incorporated abroad, meaning they would not be required to pay taxes even if licensed by Peruvian authorities.

There are other changes that are not as crucial but still relevant, Pérez said, citing certain definitions as examples. A game or live game is referred to as a public event in the current law, a limitation he is not enthusiastic about, citing two people playing ping pong.

There is also ongoing concern about seeming impunity for operators of unregulated sites.

“We don’t want to leave the door open for some operators to not pay taxes. We want to put it [in the text] as a criminal offence: the illegal operation of sports [betting] venues and online gambling. Currently, it’s not included in the law,” Pérez told VIXIO.

As for a hard date for when online gambling will launch in Peru, Pérez was circumspect. He said this remains unclear given the political turmoil in the country.

However, if someone wants to use the tax revenue as a political tool, rollout could happen surprisingly quickly, much like the passage of the law, he said.

Meanwhile, Bruno Gomez, Peru country manager for Pragmatic Play, said the market will open before the next presidential election, but the question remains when the election will be held.

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