Peru Emerges as Latin America’s Leader in Gambling Regulation

Peru has established itself as the foremost regulatory authority for online gambling in Latin America, following the successful implementation of Law No. 31557 and subsequent regulatory framework. The comprehensive approach adopted by Peru’s Ministry of Foreign Trade and Tourism (Mincetur) has yielded significant results in combating illegal gambling while promoting responsible gaming practices across the country.

Regulatory Framework and Implementation

Peru became the third nation in Latin America, after Colombia and Argentina, to implement comprehensive regulations for online betting and gaming when Mincetur introduced its regulatory framework in February 2024. This legislative initiative has produced remarkable outcomes in its first year of implementation:

• 60 technology platforms have received official authorization
• 280 related service providers have been registered
• 9 international laboratories have been certified to verify compliance and security standards

This structured approach to regulation has positioned Peru as a model for other Latin American jurisdictions seeking to establish effective oversight of their gambling sectors.

Significant Reduction in Illegal Gambling

One of the most notable achievements of Peru’s regulatory efforts has been the substantial decrease in unauthorized gambling operations:

• Over 40% reduction in illegal online betting services
• Approximately 15% of unauthorized gambling websites have been shut down
• Financial institutions have been directed to block transactions involving unlicensed operators

These enforcement actions demonstrate the government’s commitment to channeling gambling activity into the regulated market, thereby enhancing consumer protections and ensuring tax compliance.

Formalization of Land-Based Operations

The regulatory framework has also had a significant impact on physical betting establishments:

• 683 new sports betting locations were registered from December 2024
• The country now hosts 4,516 approved betting sites
• The Directorate General of Casino Games and Slot Machines (DGJCMT) has intensified enforcement actions

This comprehensive approach to both online and land-based gambling ensures consistent regulatory standards across all gambling verticals and prevents regulatory arbitrage between different sectors of the industry.

Responsible Gambling Initiatives

Mincetur has complemented its regulatory enforcement with substantial investments in responsible gambling measures:

• Educational programs in schools addressing gambling addiction risks
• Training for betting operators on implementing responsible gaming environments
• Collaboration with industry associations to strengthen and expand responsible gambling programs

These initiatives reflect Peru’s understanding that effective regulation must balance market development with consumer protection to create a sustainable gambling ecosystem.

Economic and Fiscal Challenges

Despite the regulatory success, industry stakeholders have expressed concerns about the economic sustainability of the regulated market. Particular attention has focused on upcoming tax changes:

• Consumption tax increase from 0.3% to 1% per bet, scheduled for July 2025
• Existing 12% tax on gross gaming revenue
• Combined tax burden may create operational challenges for licensed operators

Industry experts warn that excessive taxation could undermine the regulated market’s competitiveness against illegal alternatives, potentially reversing some of the progress made in channeling players to licensed platforms.

Regional Leadership and Model Status

Peru’s balanced regulatory approach has garnered recognition throughout Latin America. Key elements that have established Peru as a regional leader include:

1. Comprehensive Licensing System: Clear criteria and processes for operator authorization
2. Technological Standards: Requirements for platforms to meet international security and fairness benchmarks
3. Enforcement Mechanisms: Effective tools to identify and sanction unauthorized operators
4. Consumer Protections: Mandatory responsible gambling measures and player safeguards
5. Stakeholder Engagement: Collaborative approach involving industry, government, and civil society

This multifaceted strategy has created a regulatory framework that effectively balances consumer protection, market oversight, and investment promotion.

Future Outlook and Challenges

As Peru continues to refine its regulatory approach, several key challenges and opportunities lie ahead:

Challenges

• Finding the optimal tax balance to maintain market competitiveness
• Continuing to combat sophisticated illegal operators
• Addressing emerging technologies and new gambling products

Opportunities

• Potential for increased foreign investment in the regulated market
• Expansion of responsible gambling programs
• Knowledge sharing with other Latin American jurisdictions

The government’s ability to navigate these challenges while building on its regulatory successes will determine whether Peru maintains its leadership position in Latin American gambling regulation.

Industry Perspective

Gaming industry representatives have generally praised Peru’s regulatory framework while expressing concerns about the upcoming tax increases. The consensus view suggests that Peru has created a solid foundation for a regulated gambling market, but fiscal policy adjustments may be necessary to ensure its long-term viability.

The experience in Peru offers valuable lessons for other Latin American countries considering or implementing gambling regulations, particularly regarding the importance of balancing regulatory oversight with market sustainability.