It is no coincidence that Peru is on the iGaming industry's radar. The past decade has brought significant economic change and improved gaming regulation in the country both offline and online, positioning it as an attractive market for iGaming companies.
Peru was one of the fastest countries in Latin America to recover from COVID, showing continued GDP growth of 4.7%. The growth is expected to reach 5.7% by 2026. The influx of foreign companies into the Peruvian market is credited as a significant contributor to this growth trajectory.
Introduction to the History of Casinos in Peru
The history of casinos and gambling in Peru is not old, and it is unnecessary to go far back in time to get to the starting point. On 1 May, Peru authorised the operation of brick-and-mortar casinos within its borders. Eleven years later, slot machines received legal approval for use. Initially, slot machine rooms were subject to a mere 3% tax rate for the first two years. Then, that tax was raised to 20%. Here is the list of the best in Peru real money casinos.
Closer to the present day, there were two significant moments in the evolution of casinos and gambling in Peru. The Casino and Slot Machine Gaming Activity Law was enacted and approved with many new conditions, including increased taxes. Later, new regulations were issued requiring casinos, halls and companies to conduct internal audits and to designate funds to combat financing of crimes such as money laundering or the financing of illicit activities.
Finally, on 13 February, the long-awaited Law N 31557, which regulates online casinos and betting businesses, came into force. In this way, Peru's iGaming situation changed utterly, joining the list of regulated countries in LatAm, such as Brazil, Argentina, Colombia, and Panama.
Legality of the iGaming Industry
When considering opening an online casino in Peru, it is crucial to understand the legal situation of the industry in the country. Still, it was only during the 1990s that the laws regulating land-based casinos, lotteries, and sports betting were updated and clarified.
The laws that regulate each activity are the following:
- Law No. 27153 – Regulates the exploitation of Casino Games.
- Law No.21921 – General Law on Lottery Branches.
- Law No. 10293 – Law for Sports Event Gamblers.
- Law No. 31557 – Modified by Law N° 31.806, regulates remote gaming and remote sports betting.
The Ministry of Foreign Trade and Tourism (MINCETUR) supervises the laws related to casino games and betting on sporting events. The lawyers of Programa Integral Nacional para el Bienestar Familiar (INABIF) are in charge of regulating lottery activities.
Law No. 31557
The legality of online gambling and online casinos in Peru is a reality. Law No. 31557 officially came into force on 9 February.
MINCETUR opened registrations for gambling houses and casinos to apply for authorisation between 13 February and 13 March. More than 150 companies submitted their applications for the operating licence.
If applicants prove that they comply with all regulations, they will be able to operate legally, and Peruvians will be able to gamble in a transparent and safe environment.
Some of the most essential measures of Law No. 31557 are the following:
- All operators wishing to offer services in Peru, whether domestic or foreign, must register by complying with the process stipulated by law.
- Online casinos and remote sports bookmakers could be heavily sanctioned and banned if they operate illegally.
- All companies, whether domestic or foreign, will have to pay a special gaming tax, at 12% of the net profit.
- MINCETUR reserves the right to block websites, IP addresses, URLs and/or computer applications that offer remote gambling and sports betting services that are not authorised on a national level.
- Tax revenues from iGaming companies will be allocated as follows: 40% to the public treasury, 40% to tourism development, and 20% to mental health promotion.
The iGaming Market in Peru
Starting an online casino in Peru is an option that can be very attractive because the country’s population has been playing and betting for years. Peru currently has a well-established land-based gambling market.
Today there are more than 20 casino halls with 250 gaming tables. In terms of slot machines, there are more than 700 registered gaming halls with almost 75,000 slot machines; distributed in various locations, including 60 hotels and 150 restaurants. The physical gaming industry, in 2022, produced an average of 122 million euro and generated more than 87,000 formal jobs in the country.
iGaming in Peru, or the Peruvian online gambling market is of particular interest. On the one hand, the numbers show that the Peruvian population has a strong gaming culture. Even more vital is the passion for sports, mainly football. The enduring popularity of sports betting in Peru is evident in the robust numbers of the iGaming industry, with promising forecasts for future growth.
The growth of the iGaming industry in Peru is significantly influenced by advancements in technical and technological infrastructure. This progress began when the pandemic underscored the connectivity gap in Peru. Many students and workers in remote areas and urban centres lacked access to the internet or devices, leaving them out of the education and employment system.
To reverse the situation, the State opted to invest in telecommunications infrastructure and expand the areas of connectivity. Additionally, they launched assistance programs in collaboration with other organisations, such as Todos Conectados and Cultivo Talento Digital.
The Status of Bitcoin Gambling in Peru
The use of cryptocurrencies in Peru is not regulated, as they are not considered a currency in course, and the Peruvian government does not back them. However, users who make transactions or generate income in cryptocurrencies have to pay national taxes.
The use of cryptocurrency is only partial but is expected to increase over time because regulatory efforts are underway.
If you plan to open a casino in Peru, consider including payment service methods that process cryptocurrencies. Since most casino players prefer Bitcoin as their main cryptocurrency, it would be relevant to include it. SOFTSWISS Crypto Casino Solution offers support for several cryptocurrencies and also lets players with crypto play any game in its aggregated game portfolio and has solutions with integrated Bitcoin processing.
Marketing an Online Casino in Peru
Law No. 31557 only restricts marketing activities and advertising to companies without legal authorisation to operate in Peru. It also mandates that all promotional activities must not target persons under 18 and regulates specific promotional hours depending on the medium used.
This gives some flexibility in promoting sportsbooks and online casinos in Peru. Still, it is essential to consider the examples of other Latin American countries with a regulated market, where amendments to the original laws are now being pursued to establish new restrictions on promotion.
There are effective marketing strategies in iGaming that work well across all markets without violating established regulations. To attract users, it is common to utilise ratings, affiliate casino review networks, affiliate blogs, online media banners, social media pages, and other dedicated online resources.
Conclusion
With Law No. 31557 now in effect, Peru is gearing up for significant growth in its iGaming industry.
Effective from 1 April, the new law mandates that operators obtain permits, imposes a 12% tax on operators' gross revenues and, among other things, prohibits activities by unlicensed companies.
More than 150 companies have applied to operate legally in the country, with audit results pending.
The market is further boosted by the expansion of internet connectivity and the rising popularity of cryptocurrencies, making it more accessible and appealing to users.
