Posted: June 17, 2022, 5:25 a.m.
Last update on: June 17, 2022, 03:17h.
In just a few months, Peru has made significant progress with its online gambling initiative. It started in March and progressed further this week.
The legislative initiative that regulates online sports betting, which the Council of Ministers has already unanimously approved, is now going through its fourth committee examination. This follows an approximately hour-long debate at the Foreign Trade and Tourism Commission (CCETC, for its Spanish acronym).
The commission liked the idea of a 12% tax on the income of remote bookmakers. However, requests from other government entities for further review will influence what happens next.
Several lawmakers said they would need to hear from other government entities before approving the measure. They want to include the Ministry of Economy and Finance, the Chamber of Commerce of Lima and other specialized entities. The project is already with the Commission for the Economy, Banking, Finance and Financial Intelligence.
At the end of the debate, local media reported that the president of the CCETC, Germán Tacuri, had acknowledged and accepted the request for additional examinations. He added that they will provide valuable information and ensure that the legislation is properly drafted for approval.
In-depth review in progress
Tacuri explained the breakdown of the 12% tax, which operators will pay on their net income. 40% will constitute income for the public treasury, 20% for the Peruvian Institute of Sport and 40% for the Ministry of Foreign Trade and Tourism (Mincetur, for its Spanish acronym).
Of the total resources it receives, Mincetur will use 25% to administer the online gambling market. The remaining 75% is intended for the promotion and development of tourism.
The initiative also proposes that the Mincetur be responsible for granting authorizations for the use of technological platforms in games, sports betting and physical premises. This will require businesses to register with the Single Taxpayer Registry, which facilitates tax collection and government oversight.
These companies must also have a legal representative in Peru. Finally, the web domain of their platforms must have the “.pe” ending.
Shake the Moneymaker
In 2020, remote sports betting generated PEN$4.5 billion (US$1.2 billion). It was the result of around 150,000 daily bets. However, because online gambling is still illegal in the country, Peru cannot levy any tax on the activity, and all that capital is heading outside its borders.
Mincetur estimates that the government can collect up to 160 million pen dollars ($42 million) a year through this measure. The wallet estimated that in 2022 bookmakers would move PEN$4 billion (US$1 billion).
Le Mincetur also recently pointed out that over the past 16 years, the state has raised around 3.4 billion pen dollars ($912 million) through gambling. This is only what he received from casinos and slot machines.
Eduardo Sevilla, general manager of casino games and slots at Mincetur, stressed that the industry was able to withstand the COVID-19 pandemic and was gradually reactivating. It also means that more jobs are available to the public.
In addition, according to the statement, in 16 years, provincial and district municipalities have received more than pen 2 billion ($526 million). For its part, the Mincetur collected more than 30 million PEN (8 million dollars) thanks to the application of the fines.
Currently, Peru has 17 casinos with 235 gaming tables. Additionally, there are 713 gambling halls, 59 hotels and 145 restaurants, with a total of 70,844 slot machines.