Peru reviews gambling laws with a view to regulating online sports betting

In a proposed bill submitted by Congresswoman Diana Gonzales, Peru is to begin drafting legislation to regulate online sports betting. This new legislation will aim to regulate and tax the online sports betting market in the South American country after the national sports budget was cut. Gonzales proposes that sports betting is taxed at 20% of gross gaming revenue, with the funds collected allocated to the Peruvian Institute of Sports (IPD). She also said that licences would be valid for six years. The reason for bringing in this kind of regulation is also to try to combat money laundering, which was deemed a major reason why Peruvian sports funding has suffered a hit. Speaking to local news outlet Diario Correo, Gonzalez said: “This bill seeks to raise more resources for the state for the benefit of the population and in particular the national athletes who need more support to represent us.” If the bill does get approved, then the Ministry of Foreign Trade and Tourism will be in charge of the licensing process for operators. The legislative proposal also outlines 12 types of infractions that are separated into “very serious”, “serious” and “minor”. The penalties for incurring an infraction range from a fine of 50 UIT (Unidad Impositiva Tributaria). Fines in Peru aren’t issued in local currency but as a percentage of UIT, which is the Peruvian tax unit (In 2022, 1 UIT is equivalent to $4,600). This means that fines can change from year to year. Operators can also be suspended for up to three years, and ultimately have their licence cancelled, which will mean being disqualified from the market for 10 years.