Peru cuts illegal online gambling by 40% amid new regulation push

Peru has reportedly cut illegal online gambling by 40%, as part of its push to clean up the digital betting space. The country’s Ministry of Foreign Trade and Tourism (Mincetur) says it’s all thanks to a new law that took effect in February 2024.

The law, officially known as Law No. 31557, made Peru the third country in Latin America to put clear rules in place for online sports betting and gaming. Since then, 60 digital platforms and 280 service providers, including big names like Stake, Betsson, and Rush Street Interactive, have been officially approved. Nine international labs have also been brought in to certify that everything’s running by the book.

According to Mincetur, the new law has reportedly helped bring order to what was once a mostly unregulated space, making the market more transparent, protecting users, and opening the door to more sustainable economic growth.

At the same time, through its gaming watchdog, the Directorate General of Casino Games and Slot Machines (DGJCMT), authorities have been cracking down by shutting down illegal betting shops and going after unauthorized online platforms with coordinated enforcement efforts.

As a result, about 15% of illegal gambling websites are said to have been pushed out of the Peruvian market. That’s played a big part in the overall 40% drop in illegal online gambling. To tighten control even further, banks and payment providers have been told to stop processing transactions for unlicensed operators.

There’s also been a big jump in the number of legal betting shops opening up. Since December 2024, 683 new venues have been registered, bringing the nationwide total to 4,516.

Beyond cracking down on illegal gambling, Mincetur says it’s also focused on promoting responsible gaming. That includes running awareness campaigns about gambling addiction in schools and offering training programs for people working in the industry. The ministry is also teaming up with gaming associations to help protect vulnerable groups.

Env Media reports that Peru’s gambling market is on track to generate $2.5 billion in revenue this year. However, in April, the government introduced a Selective Consumption Tax (ISC) on online gaming and sports betting. The tax is set to hit 1% starting in July.

While the move is meant to boost public revenue, operators have raised concerns about potential compliance hurdles and technical headaches, warning that these could undermine the stability of the regulated market and make it less appealing to players.

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