Online betting houses will pay tax of 12% of their net profit from February 2024

He Ministry of Foreign Trade and Tourism (Mincetur) published this Friday the regulations of Law No. 31557, modified by Law No. 31806, which regulates remote games and remote sports betting.

Through DS 005-2023-Mincetur, the Peruvian Government establishes that the technological platforms that offer these services must present virtually, between February 10 and March 10, 2024, their request to be granted Authorization. of operation.

This is because the rule will come into force in 120 days, that is, from February 9, 2024. Platforms that do not register in that period will not be able to continue operating in our country, and the sanction for those operators that do not comply with this provision could reach 150 UIT.

“In addition, he will be subject to a corresponding criminal complaint, in accordance with article 243-C of the current Penal Code and disqualification from exercising this activity,” the ministry stated in a press release.

Minister Juan Carlos Mathews highlighted that all companies, whether national or foreign, must adapt to the new regulation and comply with the payment of the special gaming tax, which will be 12% of the net profit.

Mincetur pointed out that the norm will allow collecting about S/162 million annually, which will be invested in reactivating tourism, tourist infrastructure works, promoting sports and addressing mental health programs.

“The money won as a prize will be collected in full. The tax will apply to national and foreign online gaming and betting companies,” said Minister Mathews.

Remote betting houses in the spotlight

It is important to note that with the publication of the regulations, mechanisms are created to protect players from potential non-compliance in the payment of prizes.

It also establishes online access controls to protect vulnerable sectors (minors and people affected by gambling and will also allow combating money laundering, as there are no anonymous bets).

“It is the first time that this important economic activity has been regulated in the country. In South America, Peru becomes the third country to regulate it, after Colombia and Argentina (in the provinces of Buenos Aires, Córdoba and Mendoza),” commented the minister.

Mincetur is the national administrative authority that regulates, authorizes, revokes, supervises and sanctions the exploitation of remote gaming and remote sports betting.

Only natural persons of legal age, of Peruvian or foreign nationality, previously registered on the technological platforms for remote sports betting or games authorized for exploitation by Mincetur, may participate in this activity.

In the case of remote sports betting gambling establishments, these may be located in a location exclusive to this activity or others whose main purpose is the sale of other products or services.

Can you bet with Cryptocurrencies?

Regarding betting, the new law indicates that the player must pay for his bets with currency, credit cards, debit cards or any other means of payment, with the exception of cryptocurrencies.

In the case of obtaining prizes, these may be collected by the payment method that the player chooses or, failing that, through an account in their name, opened in a company in the financial system under the supervision of the SBS.

It should be noted that only those sporting events that are part of national or international associations, federations or sports leagues can be subject to sports betting.

Until October 2023, there are about 50 online sports betting and gaming technology platforms operating in Peru. Global online gaming gross revenue in 2022 will reach $102 billion, according to an international study by H2 Gambling Capital. It is estimated that the volume of bets made in Peru during 2022 was close to S/3.8 billion.