Does Peru allow sports betting and casinos?

With the growth of the country’s gambling sector, Peru faces a pivotal moment in the regulation of sports betting. 

Sports betting and casino games are growing exponentially worldwide. In Latin America, the gambling sector is currently valued at approximately USD 5 billion per year, a figure which is set to increase in coming years. Regulation is on the cards for several countries in the region, leading many people to wonder: does Peru allow sports betting and casinos?

The answer is yes. On 12 August 2022, Peruvian president Pedro Castillo enacted the law regulating the operation of remote gambling and sports betting. The Ministry of Foreign Trade and Tourism (Mincetur) has 120 working days from that date to codify the regulation, although the changes and implications of this law for the gaming sector are already well known. 60 days after the regulation has been published, the regulation will enter into force. 

A 12% tax will be levied on the net profit of bookmakers, which is estimated to raise 160 million soles (an amount close to $40 million) in the first few years for the Peruvian government. This money will be distributed among the public treasury (20%), mental health programmes (20%), the Peruvian Sports Institute (20%) and Mincetur (the remaining 40%), to strengthen control and oversight of online bookmakers’ platforms. 

In addition, companies will have to comply with certain requirements, as part of this law enacted by the Peruvian government. Sports betting companies will have to give a guarantee of almost 1 million soles (around USD 240,000) to the Ministry of Foreign Trade and Tourism as part of a back-up for their obligations and possible sanctions derived from the law. This guarantee lasts for one year and must be renewed for the same period of time.

In order to operate in Peru, companies must also have an authorised domain with the “bet.pe” extension. Cryptocurrency betting is prohibited, despite its growing use in Latin America. Payment of bets will have to be made with cash, debit or credit cards or any other means of payment accepted by the bookmaker. 

In addition, bets can be placed on sports only – and not on other topics such as political elections or the country’s economy. Coaches and players of the teams involved are barred from betting, since they could directly influence the outcome of a sporting event. The same applies to referees. 

Physical betting company offices will need to be located over 150 metres away from educational centres such as schools, colleges or universities. In addition, specific opening hours for the display of advertising will be implemented, and betting shops will be obliged to display the mandatory warning that excessive gambling can cause compulsive gambling. 

Non-compliance with these regulations will lead to sanctions ranging from a reprimand to disqualification, i.e. no longer being able to operate in the country. Economic fines are scaled up to approximately one million soles. Other types of sanctions include the suspension of activities and company websites. 

Finally, welcome bonuses may not be exchanged for cash. Bonuses may be awarded to customers or added to payouts, but not in the manner described above. Now that we’ve answered the question, “does Peru allow sports betting?”, let’s learn a little more about the market in this Latin American country. 

According to the Ministry of Tourism and Trade, the gambling industry generated over one billion dollars in 2021. In 2020, when the pandemic began, more than 5 million people placed this type of bet online – a figure which increased to 6 million people the following year. Gambling in Peru has seen exponential growth over the past five years, due to a combination of internet accessibility and the emergence of a greater number of bookmakers.

According to a study by the Attach consultancy, 90% of sports betting revolves around football. The most popular events include the World Cup, the Champions League, the Copa America, the European Championships, local tournaments and important matches at the world level, such as Real Madrid vs. Barcelona and other classic encounters in Europe’s main leagues. Tennis, basketball and motorsports also generate attention.

According to our report entitled “A Big Bet: The Developing Latin American Gambling Market”, conducted at the end of 2020, more sports bets are placed in Peru than in any other Latin American country except Brazil. 18% of respondents indicated that they bet more than once a week, 16% said that they bet once or more every month, while 37% say they’ve done so a few times in their lifetime, and 12% say they bet on major events such as the World Cup or Copa America. 

The top three factors for choosing a bookmaker are free bets and special offers (selected by 65% of respondents), an easy local payment system (60%) and an easy-to-navigate website (55%). 

As for brand ambassadors, Peruvians believe that a TV presenter is the best choice (46%), followed by a professional gambler (41%) and an actor (39%). Furthermore, in the case of a football celebrity representing a brand – which can be key for brands looking to build media relations – Peruvians are inclined to listen to an international star such as Neymar, Lionel Messi or a famous ex-footballer. 

A law governing casinos and games of chance has been in place since 1999, when Congress passed Law No. 27153. The law regulates the operation of casino games and slot machines, and establishes requirements for the operation of this activity. In addition, a special tax was created, which has undergone modifications since the previous decade. The last such change was in 2012 to prevent gambling addiction in gambling halls, while in 2007 changes were introduced to protect minors, who are prohibited from participating in casino games.

The land-based casino sector has been hit hard in the last two years due to the Covid-19 pandemic, and some establishments were forced out of business. However, the economic recovery and the return to a “new normal” have led to a significant recovery in revenues.

In our 2020 report on betting and gambling, Peruvian respondents said that if a new casino were to open in their city, 52% felt it would bring more job opportunities, while 42% thought it would be a good attraction for the city. 37% believed it would attract more tourists and more money, and 29% said it would help the economy grow.  

Having answered the question of whether Peru allows sports betting and casinos, we’ve examined the main updates to the laws which are being adapted to gambling, allowing for greater regulation and care towards end users.