TLDR
- Illegal offshore operators are undercutting licensed betting companies in Peru by avoiding taxes and regulations
- Licensed operators pay a 12% sector tax on gross gaming profit plus a 1% tax on every bet placed
- A sports integrity bill passed by Congress was vetoed by the Executive branch and awaits further action
- Regulators are urged to focus on redirecting consumers to legal platforms, not just enforcement
- Peru may update its tourism law to formally register casinos and slot machine operators
Peru’s regulated betting market is growing, but two big problems are holding it back: illegal gambling operators and sports integrity risks.
Carlos Fonseca, a gaming law specialist and CEO of Gaming Law SAC, wrote in El Peruano that getting the balance right between consumer protection, market competition, and effective oversight is key to the sector’s future.
He noted that sports betting demand is “persistent and relatively inelastic,” meaning people keep betting regardless of economic conditions, especially during major international sporting events.
The Illegal Operator Problem
The biggest challenge facing Peru’s betting market is unlicensed offshore platforms that operate without a state license.
These platforms avoid the taxes and regulatory costs that licensed operators must pay. That gives them a competitive edge and pulls both businesses and consumers away from the legal market.
Licensed operators in Peru pay general business tax plus a sector-specific tax equal to 12% of gross gaming revenue. On top of that, Peru added a Selective Consumption Tax of 1% on every single bet placed.
Fonseca said the combined tax burden, while high, is still within the range seen in other countries. But if regulators pile on too many costs, legal operators lose their edge over illegal ones.
He argued regulators should spend less energy on enforcement alone and more on making the legal market attractive enough that consumers choose it over offshore alternatives.
Sports Integrity Still Unresolved
Match-fixing and fraud in sporting competitions are also a concern for Peru’s betting sector.
A bill aimed at strengthening anti-match-fixing rules passed through Congress. However, the Executive branch vetoed it, and the legislation is still waiting for further action.
Fonseca stressed that tackling sports integrity requires cooperation between regulators, betting operators, sports organizations, and international bodies.
He also praised Law No. 31557 and its amendments, calling them a turning point for Peru. That law was the first to regulate remote gambling and betting in the country.
Tourism Law Could Bring More Operators Into the Fold
Separately, Peru is looking at updating its tourism legislation to formally include casinos and slot machine operators.
A proposed Supreme Decree would amend the General Tourism Law to bring casino and slot operations under the oversight of the Ministry of Foreign Trade and Tourism.
The change would not create new gambling venues. It would register existing operators into the national tourism services registry.
According to the proposal, the casino and slot sector is already fully legalized and monitored using a real-time control system that tracks economic and tax activity online.
If passed, the amendment would formally update the tourism law to reflect this.
