Regarding the current situation of the Southeast Asian iGaming industry, the deadline for the POGO (Philippine Offshore Gaming Operators) ban is approaching.The entire Philippine iGaming industry is currently in turmoil. Many betting companies have already started moving their betting operations to third countries.Some companies that have not yet relocated are also exploring the legal iGaming environments in various countries around the world, seeking those that have iGaming and can provide licenses.

In a previous article, the editor of TC-Gaming introduced the legality and licensing of iGaming in Armenia.Today, we will continue this licensing topic and discuss—legal iGaming and licensing in Peru.

In fact, when relocating a iGaming company's operations and seeking a new business location, the primary consideration is the long-term stable development and legal operation of the iGaming business. In this process, the iGaming company may need to weigh various factors, including the local iGaming legal framework, iGaming tax policies, surrounding environmental infrastructure, talent market, daily consumption, and other situational factors.I also hope that this article by the TC-Gaming editor can provide some reference value for everyone's wise decision-making.

Overview of Peru

Peru is a country in South America. In this section, the editor of TC-Gaming White Label will introduce some basic information about Peru, covering its geography, economy, culture, per capita income levels, language usage, religious beliefs, and general attitudes towards iGaming.

Geographical Location of Peru

Peru is located in the western part of South America, bordered by Brazil and Bolivia to the east, Chile to the south, and the vast Pacific Ocean to the west. The capital, Lima, is not only the political center of the country but also a hub for its economy and culture. Peru has abundant natural resources, and in recent years, the tourism industry has also benefited from these resources, experiencing rapid development.

How is Peru's economy?

In the economic system of South America, Peru's economic level is classified as a developing country.Mainly relies on the following pillar industries: mining, agriculture, fisheries, and manufacturing. However, Peru holds an important position in the global mineral resource development sector and is one of the world's largest producers of copper, zinc, and silver.Mining products account for a significant share of Peru's Gross Domestic Product (GDP).

• Total GDP: According to the latest economic data released by the World Bank, Peru's Gross Domestic Product (GDP) in 2022 was approximately $242.6 billion.

• Total GDP: According to the latest economic data released by the World Bank, Peru's Gross Domestic Product (GDP) in 2022 was approximately $242.6 billion.

However, there is a very obvious imbalance in income distribution within Peru. Especially the residents of the capital Lima and its surrounding areas usually enjoy higher income levels and living standards.In contrast, the income levels of residents in rural areas and remote mountainous regions are relatively lower. To put it simply, developed cities have more employment and job opportunities, living conditions and income levels are disproportionate compared to rural areas, and the wealth gap is significant.

By the way, there is a "rich-poor wall" in a community in Lima, the capital of Peru, mainly to prevent the poor from stealing.

The population of Peru

Peru has a population of 34.52 million, a stable economy, and a growing middle class, making it one of the most attractive markets for international gaming operators.

From 2023 to early 2024, Peru's population increased by 331,000 (+1.0%).Women account for 50.5%, and men account for 49.5%.79.0% of the population lives in the city center, while 21.0% lives in rural areas.The average age of the population in Peru is 28.9 years.

• 8.5% of children are aged between 0 and 4 years.
• 13.5% of children are between the ages of 5 and 12.
• 8.8% of the people are aged between 13 and 17 years.
• 11.4% of people are aged between 18 and 24.
• 15.7% of people are aged between 25 and 34 years.
• 13.9% of people are aged between 35 and 44.
• 11.3% of people are aged between 45 and 54.
• 8.1% of people are aged between 55 and 64.
• The population aged 65 and over accounts for 8.7%.

What language is used in Peru?

Due to Peru's historical and cultural background, Spanish is primarily used as the official language. Spanish is the main language for daily communication and business interactions for most Peruvians. However, Peru is also a multilingual country, with several indigenous languages frequently used, such as Quechua and Aymara. These languages are mainly used in indigenous communities in the Andes region.

Peru's Religious Belief Culture

Peru's religious culture is deeply rooted in its colonial history, presenting a pattern dominated by Catholicism, with multiple faiths coexisting. Approximately 80% of Peru's population adheres to Roman Catholicism, and besides Catholicism, Protestantism and other religious beliefs also hold a place in Peruvian society.

How do Peruvians view gambling?

However, Peruvians are quite accepting and supportive of gambling. In the Latin American region, Peru is considered one of the most open and developed countries in the gambling market. Firstly, casinos, sports betting, and more recently, iGaming are all legal in Peru. Additionally, Peruvian authorities have implemented legal regulations for the gambling industry. The main reason is that Peru recognizes the significant role gambling plays in boosting the country's economy and tourism industry. On one hand, the gambling industry brings considerable tax revenue to the country, becoming one of the important sources

How is gambling in Peru?

The history of gambling in Peru is quite long. Initially, gambling was mainly focused on sports betting, especially on football matches. Additionally, Peruvians have a strong cultural passion for sports. Moreover, in the 20th century, the rising enthusiasm for sports events in Peru further promoted the growth of Peruvians' engagement in sports.

Peru's Land-Based Gambling

Land-based casinos and gambling venues in Peru have gradually been legalized and developed since the latter half of the 20th century. The Peruvian government has adopted a gradual approach to opening up and regulating gambling allowing land-based casinos to operate in various locations across the country. In terms of gambling regulation, the Peruvian government has established some legal frameworks, including licensing requirements for casinos and iGaming companies, as well as taxation on gambling revenues.

Peru iGaming

Entering the 21st century, with the widespread use of the internet and advancements in technology, iGaming rapidly rose in Peru.The Peruvian government is gradually recognizing the potential of iGaming and is taking steps to regulate it.In 2008, Peru passed a dedicated legal framework for iGaming allowing and regulating iGaming. This makes Peru one of the first countries in Latin America to legalize iGaming. Then, in 2019, Peru consolidated its previous iGaming laws, allowing more international and local betting companies to operate online platforms in Peru.Also includes offshore iGaming.The General Directorate of Casino Games and Slot Machines in Peru is responsible for overseeing the legality and compliance of iGaming companies.Sports betting, esports, and casino games (such as poker, roulette, slot machines, etc.).They all issued iGaming licenses to it while strictly regulating taxes. In fact, the iGaming consumption tax in Peru was initially 1%, but it was abolished in 2021.

(Note: A 1% tax is levied on the value of each bet, which is a consumption tax.)

What is the current state of iGaming in Peru?

To clearly explain the current situation of iGaming in Peru, I think it would be more meaningful to start from 2021 and refer to a few important news pieces.

The state of iGaming in Peru in 2022

1. In August 2022, Peruvian President Pedro Castillo passed a formal bill to legalize sports betting and online gaming.In the Peruvian Congress, it received 91 votes in favor and 0 votes against.
2. Designate the Ministry of Foreign Trade and Tourism of Peru (Mincetur) as Peru's official gaming regulatory body. Mincetur will have the authority to monitor all gaming operations in Peru, including blocking URLs and IP addresses that violate the law.
3. The tax rate is set at 12% of the total tax base, which is made up of net income minus maintenance costs, and will be levied monthly. The tax will be supervised by Peru’s customs and tax agency, Sunat.
4. The maintenance tax will be 2% of the operator's monthly revenue.
5. Companies that violate Peru's gaming regulations can be fined up to 200 soles. Other penalties include freezing assets or revoking licenses for up to 10 years or permanently.

The state of Gaming in Peru in 2023

1. In May 2023, Peru approved new iGaming regulations, doubling the cost of new iGaming licenses to 2.97 million soles (808,000 USD).
2. The amended Law No. 31557 stipulates a 12% value-added tax rate.
3. The new iGaming law also abolished the retail entity licensing system.Instead, a single iGaming license will be created.
4. All iGaming companies operating in South American countries must use Peruvian domain addresses: (.bet.pe/ .bet/ .com/ .pe/.com.pe).

The state of iGaming in Peru in 2024

1. In March 2024, Peru received 145 operator license applications within the first 30 days after the enactment of Law No. 31557.
2. In September 2024, there were gaming industry giants commenting on the Peruvian government's imposition of a 12% consumption tax on gaming operators.
3. Large gambling institutions in Peru now say that before the pandemic, retail physical gambling operations accounted for 60% of the market, while iGaming operations accounted for 40%.But now it's 2024.The retail physical betting business accounts for 25%, while the online betting business accounts for 75%.
4. A major iGaming giant has exited the Peruvian iGaming market and shifted to the Brazilian iGaming market (I won't mention the company here to avoid any potential advertising implications), stating that their return on investment in Brazil is currently very high.

Some information related to Peruvian iGaming license regulations

The regulatory body for iGaming licenses in Peru

In the first month of the implementation of Peru's new iGaming law in 2024, Peru's Ministry of Foreign Trade and Tourism (MINCETUR) received 145 applications from operators, who wish to obtain licenses to legally offer iGaming services in Peru. Additionally, 144 service providers have registered and submitted 184 approval requests regarding technical platforms, betting models, and other aspects.At the same time, it is stipulated that both domestic and international operators must meet the following requirements:

1. Obtain a six-year license issued by MINCETUR; this license is non-transferable.Operators must ensure that their platforms are registered and compliant with the certification of authorized laboratories.
2. It is necessary to provide MINCETUR and the tax authorities (SUNAT) with real-time data access, including access to player information and bonus status.Even if the server is abroad, it still passes the MINCETUR certification. Some regulations on betting and payments in Peru

Some Peruvian gambling regulations and payment restrictions

1. Only approved events: Betting is limited to events approved by recognized national or international sports organizations.
2. Prohibition of cryptocurrency payments: Sports betting prohibits the use of cryptocurrency payments.Bettors can use cash, credit cards, debit cards, and other traditional payment methods.The bonus can be claimed through the payment method chosen by the player or a Peruvian bank account.Prohibition of cryptocurrency payments: Sports betting prohibits the use of cryptocurrency payments.Bettors can use cash, credit cards, debit cards, and other traditional payment methods.The bonus can be claimed through the payment method chosen by the player or a Peruvian bank account.
3. Penalties for non-compliant operators: iGaming operators who do not comply with regulations may be fined up to 990,000 soles (approximately 257,838 USD) and could also face a maximum of 4 years in prison.
4. Prohibition for athletes and officials: Athletes, coaches, and referees are not allowed to participate in sports betting.
5. Prohibition of minors participating in iGaming: iGaming operators must implement strict access controls to prevent minors from participating in iGaming.
6. Restrictions on iGaming advertisements: In Peru, only licensed iGaming operators are allowed to advertise or sponsor iGaming activities. But advertising or sponsorship is subject to some restrictions in order to maintain ethical marketing standards.
7. Restrictions on physical betting outlets: No betting station shall be located within 150 meters of a school to ensure a safe distance from educational institutions.

Daily living expenses in Peru

In Peru, especially in cities like Lima, daily living expenses vary by area, with the cost of living in the city center generally being higher.The editor of TC-Gaming White Label has compiled some basic information on living expenses, including restaurant costs, rent, utility bills, and internet fees.

Dining consumption

• Regular restaurant: A typical simple meal (for example, at a local Chinese restaurant) costs around 12 to 25 Peruvian soles per person (approximatel
• Fast food restaurants (like KFC): A meal combo costs around 15 to 20 Peruvian soles (approximately 4 to 5.5 dollars).
• Mid-range restaurant: A three-course meal for two costs approximately 60 to 120 Peruvian soles (about 16 to 33 USD).
• Café: A cup of latte coffee costs around 8 to 12 Peruvian soles (approximately 2 to 3 dollars).

Renting costs

• Studio apartments in the city center: Renting a studio apartment in the city center costs approximately 1800 to 2800 Peruvian soles (about 500 to 750 US dollars) per month.
• Suburban studio apartment: Renting a studio apartment in the suburbs costs around 1200 to 1600 Peruvian soles per month (approximately 330 to 440 USD).
• Three-bedroom apartment in the city center: A three-bedroom apartment suitable for families rents for approximately 3500 to 5500 Peruvian soles (about 970 to 1500 USD).

Utilities and other daily expenses

• Utilities (including electricity, heating, cooling, garbage disposal, etc.): The monthly utility cost for an 85 square meter apartment is approximately 200 to 350 Peruvian soles (about 55 to 95 USD).
• Internet fees: Approximately 60 to 150 Peruvian soles per month (about 16 to 40 USD), depending on the internet speed and provider.
• Mobile plans: A typical mobile plan (including calls and data) costs about 40 to 80 Peruvian soles per month (approximately 11 to 22 US dollars).

Other living expenses:

• Public transportation: A single bus or subway ticket costs approximately 1.5 to 2.5 Peruvian soles (about 0.4 to 0.7 USD).
• Gasoline prices: Approximately 5 to 6 Peruvian soles per liter (about 1.4 to 1.6 US dollars).
• Gym membership fee: A typical gym membership costs about 100 to 200 Peruvian soles per month (approximately 27 to 55 USD).

The overall cost of living in Peru is relatively low, especially in terms of food and transportation. However, housing costs, particularly rent in the city center, can be relatively high for expatriates.

Internet situation in Peru

Peru's main internet service provider

1. Claro Perú：Claro Perú: Claro is one of the largest internet service providers in Peru, offering broadband and mobile data services.It provides stable high-speed internet service in urban areas of Peru, especially in the capital, Lima, and the network coverage is quite extensive.
2. Movistar Perú：Movistar Perú: Movistar is another major internet and telecommunications service provider in Peru, belonging to the Spanish telecom giant Telefonica.It covers most cities and towns across the country, providing fiber and DSL network services. Especially in major cities like Lima, Movistar's network speed and stability are highly regarded.
3. Entel Perú：Entel Perú: Entel provides mobile and home broadband internet services, primarily achieving high-speed internet access through its 4G network.Although Entel has a relatively small market share, it has good coverage in major cities like Lima and attracts users with competitive prices.
4. Bitel：Bitel: Bitel is a subsidiary of the Vietnamese company Viettel in Peru. In recent years, it has rapidly developed, mainly providing affordable mobile data services.Bitel's characteristics are its low network prices and coverage in many rural and remote areas.

Peru's network coverage

Urban areas: In major cities in Peru such as Lima, Arequipa, and Cusco, internet coverage is very high, fiber optic and 4G networks are widely available, and multiple providers compete fiercely, offering various package options with download speeds reaching 100 Mbps or higher.

Rural and remote areas: Network coverage in rural and remote areas of Peru is relatively limited.But with the government and private companies' increased investment in infrastructure, many remote areas can now connect to the internet via 3G or 4G networks.Bitel particularly excels in expanding network services in rural areas.

The digital status of Peru in 2024

• In 2024, the number of internet users in Peru was 25.78 million, with an internet penetration rate of 74.7%.
• In January 2024, Peru had 24.05 million social media users, accounting for 69.7% of the total population.
• At the beginning of 2024, Peru had a total of 37.9 million active cellular mobile connections, which is equivalent to 109.8% of the total population.
• From January 2023 to January 2024, the number of internet users in Peru increased by 247,000 (+1.0%).

Internet connection speed in Peru in 2024

• The average speed of cellular mobile internet connections is 17.41 Mbps.
• Average fixed internet connection speed: 93.92 Mbps.
• In 2023-2024, Peru's average mobile connection speed increased by 0.79 Mbps (+4.8%).The fixed connection speed increased by 28.12 Mbps (+42.7%).

2024 Peru Social Media Statistics

• As of January 2024, there are 24.05 million active social media users in Peru, equivalent to 69.7% of the total population.Compared to last year, the number of social media users in Peru increased by 1.2 million (+5.3%).
• As of early 2024, the number of social media users aged 18 and above in Peru was 24.05 million, equivalent to 101% of the total population aged 18 and above at that time.Among social media users, 48.4% are female and 51.6% are male.

What electronic wallets are there in Peru?

In Peru, electronic wallets are becoming increasingly popular in daily life, especially in promoting cash alternatives and enhancing online transactions. Additionally, the convenience of electronic wallets is also a key factor in their widespread acceptance.

Yape

Yape is a mobile payment application launched by the Banco de Crédito del Perú (BCP), widely used for personal and commercial transactions, allowing users to easily make transfers via phone number or QR code.

Plin

Plin is a joint mobile payment platform of major banks in Peru, including Interbank, BBVA, and Scotiabank.Users can make instant transfers using the mobile phone numbers of their contacts.

Tunki

Tunki is an electronic wallet launched by Interbank, allowing users to easily manage funds, pay bills, and make transfers through a mobile app, without the need for a bank account.

PagoEfectivo

PagoEfectivo is an electronic payment method that allows users to make online payments using cash or virtual codes, widely used for e-commerce and online service payments.

Niubiz Wallet

Niubiz Wallet is an electronic payment platform that allows users to make cashless payments at participating merchants. It supports various payment methods, including credit cards and e-wallet features.

BIM (Mobile Wallet)

BIM is an electronic wallet service jointly launched by several telecommunications companies and financial institutions in Peru, primarily aimed at users without bank accounts, allowing them to make payments and transfers via mobile devices.

Moving the iGaming business to Peru may encounter the following difficulties.

If companies in the iGaming or related industries are considering relocating their operations to Peru, despite the promising prospects of Peru's iGaming industry, especially the rapid expansion of iGaming they may face the following challenges:

Regulation and law

Peru passed regulations for iGaming in 2022 and is gradually the relevant legal framework.Although this provides a foundation for the legal operation of international iGaming companies, the regulatory requirements can be quite complex, especially for foreign companies looking to enter the market.The company must meet the following requirements:

1. License application: The company needs to obtain a six-year iGaming license from MINCETUR (Ministry of Foreign Trade and Tourism of Peru).
2. Data and Compliance: Operators need to provide real-time access to gaming data to MINCETUR and tax authorities, ensuring their systems comply with Peru's regulatory standards.
3. Tax burden: Peru requires 12% of all iGaming revenue as tax, which can be a significant financial burden for some operators.

Cultural and language barriers

Although Spanish is the official language of Peru, to gain market recognition and attract local players, the company needs to deeply understand Peru's cultural background, especially the preferences of the iGaming culture. For example, Peruvian players' preferences for specific themes (such as animal themes, classic themes, etc.) differ from those in other Latin American markets. Furthermore, marketing strategies need to be tailored to the habits of local players.

Payment channels and financial regulation

The iGaming industry in Peru is in a phase of rapid growth, but payment processing for iGaming companies may face challenges. Although mainstream electronic payment methods (such as Visa, MasterCard, PayPal, etc.) are generally available, there are still areas in Peru where the cash payment culture is quite strong, especially in rural and remote regions.The company may need to collaborate with local payment service providers, such as PagoEfectivo or Niubiz, in order to offer more payment options. At the same time, the company also needs to comply with the local financial regulatory requirements in Peru.

Network and infrastructure limitations

Although major cities in Peru, such as Lima and Arequipa, have better internet infrastructure, network coverage is still poor in some remote or rural areas.For iGaming platforms that rely on robust online infrastructure, this could be a significant issue. Moreover, network stability may affect user experience, thereby impacting player retention rates.

Talent recruitment

Peru's technical talent may be relatively difficult to recruit, especially in the iGaming industry, where experts in technical support, marketing, and data analysis are relatively scarce.The company may need to recruit relevant talent from other countries, which will increase operational costs.In addition, the betting company may also need to provide specialized training for new employees.

Tax and financial management

Peru's new regulations require iGaming companies not only to pay taxes but also to ensure that all financial and operational data can be reported to the government in real-time, which will increase complexity both technically and operationally.The company needs to have a good financial management system to avoid any compliance issues.

Summary

Despite the rapid development of the iGaming market in Peru in recent years, attracting a large number of international gaming companies, there are still many issues to be addressed for a smooth transition to operations.The environment of the iGaming industry in Peru is quite complex, with strict requirements for financial transparency and uncertainties in tax policies. The previous situation where the tax rate suddenly increased from 1% to 12% proves that there may be more tax changes in the future, which could be a guessing game for newly entering companies. Moreover, although the Peruvian gaming market faces difficulties in recruiting professional talent.Especially in the iGaming industry, it is not easy to find international talent who are both familiar with the operations of the iGaming industry and can speak Spanish.

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