Peru Regulator Reports 40% Cut in Illegal Online Gambling as Market Matures Under New Law

The Peruvian Ministry of Foreign Trade and Tourism (Mincetur) announced on Friday that its ongoing efforts to regulate online gambling have led to a significant 40% reduction in illegal digital gambling activity.

The update marks more than a year since the implementation of Law No 31557, which formally introduced regulatory oversight for online sports betting and gaming across Peru.

According to Mincetur, the country’s digital gambling landscape has undergone a considerable transformation since the legislation came into force. International platforms including Stake, Rush Street Interactive, and Betsson have since entered the Peruvian market, supported by Mincetur’s authorization of 60 technology platforms and the registration of 280 associated service providers.

The ministry further reported that illegal operators have been targeted with increasing intensity. The General Directorate of Casino Games and Slot Machines (DGJCMT), the body responsible for enforcement under Mincetur, has played a central role in this effort. “It has intensified its oversight, closing illegal establishments and promoting coordinated actions to reduce the presence of clandestine platforms,” the ministry said.

Mincetur claimed it has succeeded in removing 15% of illegal gambling websites operating in Peru, and cutting illegal gambling supply through digital platforms by 40%. In addition, DGJCMT has taken steps to dismantle the financial infrastructure supporting unlicensed operators, including reaching out to payment institutions to block services facilitating illegal gambling activity.

Since the law came into effect, Peru has positioned itself as one of the most proactive gambling regulators in Latin America. Alongside Colombia and Argentina, it remains one of only three countries in the region to implement formal legislation specifically tailored to online betting. Mincetur described Peru as a “regional benchmark” for regulatory standards, adding, “This regulation has allowed the digital sector to be formalised, fostering an environment of trust for both operators and users. It has also opened up new investment opportunities, boosting the digitalisation of entertainment and strengthening the country’s tax collection.”

In terms of brick-and-mortar operations, Mincetur has reported significant growth in the number of sports betting venues. Since December 2023, 683 new establishments have been registered, bringing the total nationwide to 4,516.

As part of its efforts to build a sustainable and safe gambling ecosystem, the ministry has introduced a number of responsible gambling initiatives. These include educational talks focused on gambling addiction awareness in schools and universities, as well as training programs for companies operating in the betting sector. “Collaboration with gaming associations reinforces the commitment to protecting vulnerable groups and ensuring a safe and responsible gaming environment,” Mincetur stated.

However, despite these advancements, concerns have emerged over the reintroduction of a consumption tax on the sector. The current levy stands at 0.3% on every bet placed but is scheduled to increase to 1% from 1 July 2025. Industry figures have raised alarms that this added burden could stifle the market’s growth potential.

Gonzalo Perez, CEO of prominent Peruvian operator Apuesta Total, warned that layering the consumption tax on top of the existing 12% gross gaming revenue (GGR) tax could effectively double the financial strain on companies. This, he argues, may push operators and players toward the black market.

Legal experts share similar concerns. Nicolás Samohod Rivarola, head of gambling and betting at Vidal Caceres law firm, told iGB: “It would take the tax impact on [licensed operators] to high and burdensome levels, bordering on unconstitutional. And it would make many [stakeholders] think about evaluating their [presence] in the Peruvian market.”

While Peru's regulatory progress has drawn regional and international attention, the sustainability of its success may hinge on how it balances fiscal demands with market competitiveness.

By fLEXI tEAM