Peru is closer to introducing online sports betting in an effort to boost its economy. The Economic Commission of the Congress unanimously approved a bill regulating the activity.
Congresswoman Diana Gonzáles presented the bill, which proposes to regulate sports betting on the internet or other communication channels.
During the session, held in the Legislative Palace, the legislator argued in support of her initiative. She indicated that it would allow Peru and national athletes to benefit from the economic activity. The bill will now head to Parliament for further discussion.
Online Sportsbooks In Peru’s Future
Gonzáles explained that this bill will formalize sports betting, which will help prevent crimes such as money laundering. It will also provide greater support to Peruvian sports through the taxes the government will be able to collect.
The initiative comes as Peru’s national sports organizations receive smaller budgets each year. In addition, Gonzáles maintains that online sports betting is not regulated in Peru. As a result, there is no tax revenue. She stated that, in 2018, the unregulated sports betting industry in Peru was worth about 1.8 billion soles (US$475.87 million).
The proposal indicates a total of 12 sanctions in case of any violation of the rule. These range from a fine of up to 50 UIT, the suspension of activities of up to 36 months, definitive cancellation of the license, and disqualification for up to 10 years. The UIT is a type of tax unit that currently is equal to S4,600 (US$1,216).
Of that, the government didn’t receive any percentage. Even at just 3%, Peru would have received over $14 million. For a country where approximately 19% of its population lives in poverty, that money would go a long way.
Peru Takes Gambling to its Next Logical Step
To a large extent, the success of the casino and gambling sector in Peru is because of a clear, precise and easy-to-implement regulatory framework. This legal formalization has attracted many investors, both national and foreign, who see in this sector an interesting potential for income generation.
The Peruvian government, aware of the importance of recognizing, formalizing, and regularizing the gambling sector, developed a strict but clear legal framework. It allows interested companies to develop the activity with total legal certainty, while offering players more assurances. However, online casinos and online sports betting remain absent.
Peruvian regulations on this matter clearly differentiate between gambling and betting. The law defines as a game of chance that which is based on mere luck to determine the player’s profit. This includes slot machines, lotteries and casino games, such as bingo, roulette, and others.
On the other hand, “gambling” games require skill, knowledge, and talent. Betting is regulated by Law 10345 dating from 1945, but it only tried to introduce the activity. Sports betting, on the other hand, is regulated by article 1942 of the Peruvian Civil Code, and there are no major restrictions on the exercise of this type of business.