In 2022, the President of the Republic of Peru signed Law 31557 to regulate online gambling and sports betting in the country. This enactment had a great impact on the iGaming business in Peru. Jonathan Felix Vilchez, SOFTSWISS Regional Business Development Manager, gives his expert view and draws the first conclusions about the resulting changes in the comment below.
The Peruvian gambling market is one of the most lucrative destinations for international investors seeking new grounds to land their projects in the iGaming sector. Over the last five years, the Peruvian market has seen the sports betting, and online gaming sector grows exponentially, especially during the two years of the COVID-19 pandemic.
For this reason, in July 2022, the Congress of the republic approved the law to govern remote sports betting and online games. In August of the same year, the government finalized Law No. 31557 to regulate this activity, designating MINCETUR as the regulatory body, which is currently in the process of preparing the related technical regulations.
With the Law approved, Peru has become the fourth country in the region to regulate this market (after Colombia, Panama, and Argentina). According to the preliminary estimates, this sector’s share in the national GDP structure is 0.7% on average and is projected to grow more than 1.5% a year in the coming years. That is why our country, same as Brazil, has become an attractive destination in the region for local and global investments.
As in any other regulatory process, some aspects of the law need to be adjusted and clarified. In this respect, in November 2022, congresswoman Lady Camones presented draft law 3595-2022, which includes a number of important clarifications that, in my opinion, would be a valuable addition to Law 31557 and which, once in force, would help consolidate, grow and mature the Peruvian market to generate more revenue for the state through the rights of use.
So, I expect that this important change will be very productive for the stakeholders and that it will give everyone an insight into the law, the current market, the challenges associated with the enactment, and the opportunities for national and international companies in this new phase of the regulated market.
I believe that it is an important opportunity for major global iGaming providers, such as SOFTSWISS, who are committed to the industry and regulated markets, to become part of the process. They can contribute to the development and strengthening of the Peruvian market through their expertise and by designing and adapting their solutions to this type of market, regulators, operators, and players.
SOFTSWISS will be showcasing its solutions and offerings at the following events in Latin America: GAT Expo (29-30 March, Colombia), SAGSE LatAm (19-20 April, Argentina), and CGS LATAM ( 30-31 May, Chile). All visitors are invited to book a meeting with the company’s business development managers and find out more about SOFTSWISS’ innovative products and solutions.