Substantial Revenues Expected After Peru Legalizes Online Gambling and Sports Betting
Peru is bringing good news for online gambling. The Peruvian government permits online bookies and casinos to run legally within the Latin American nation. From the new business taxes, the government anticipates receiving respectable income.
Sports betting and online casinos are becoming incredibly popular in Latin America. With so many people now participating in online gambling, many nations have begun to take action to legalize the business and reap the rewards of its anticipated revenue.
Peru is one of Latin America’s first nations to take the initiative. This year, Peruvian MPs rapidly approved the legislation, and President Pedro Castillo Terrones recently signed it into law. At a government-organized event, Castillo signed the law. The country’s official newspaper, El Peruano, published the Act before it went into effect.
Sooner Rather Than Later
The Ministry of Foreign Trade and Tourism is designated as the administrative gaming authority at the federal level. The law stipulates that the decree must be published no later than 120 working days after the regulations are formed. Licensing, monitoring, and overseeing the provider operations will fall under the purview of the government.
The legislation strictly prohibits the use of online sports betting and gambling by minors and people struggling with gambling addiction. According to the law, the government will provide operators access to a database that contains a list of gamblers who are not permitted to use online casino services.
The Ministry of Transport and Communications will also regulate the legal online gambling market. It will take the necessary actions to block any operator’s websites, IP addresses, URLs, and computer programs if they try to offer their services in Peru without the required authorization. The legislation also forbids the dissemination of advertising for unlicensed online gambling services.
According to the regulation, online sports betting and gambling establishments must be at least 150 meters (492 feet) away from places of worship or education facilities that provide regular elementary education. The distance is determined using the shortest foot route rather than line of sight.
Tax Revenues
The proposed tax rate is 12%, the same as what is now paid by casinos and slot machines in Peru. Gambling operators are expected to pay direct taxes, which will be applied to their overall market share and net revenue.
The unregulated remote sports betting and gaming sectors are valued at almost $1 billion. According to the Peruvian government, none of that market brings in money for the state through taxes. Peru estimates that the new legislation will generate annual tax revenue for the government of about $40.6 million.
According to the law, the public treasury must receive 40% of the taxes the government collects. Another 20% will go to other government programs, such as mental health promotion, with the remaining 40% going to advancing tourism.
Penalties
There is a wide range in the severity of the penalties for breaking the law. Penalties for infractions include reprimand, a fine ranging from one to two hundred UIT, license cancellation, a ten-year suspension, or permanent disqualification.
Closing Remarks
More Latin American nations are expected to follow Peru in legalizing sports betting and online gambling. The growth of the gambling industry and the associated tax revenues may help to sustain the local economy.
Category: Gambling industry