Peru’s online sports betting draft bill introduced by Foreign Trade and Tourism Ministry – Yogonet International

The Minister of Foreign Trade and Tourism, Roberto Sanchez, affirmed that the draft bill prepared by the Ministry of Foreign Trade and Tourism (Mincetur) to regulate Internet gaming and sports betting, has as its main objective to efficiently regulate this activity, that generates an approximate amount of 4,500 million soles ($1.21 million) per year.

He pointed out that it is urgent that these operations are regulated in a thorough manner, so that they may pay taxes and comply with the appropriate terms and conditions, guaranteeing security to users, as well as transparency and responsible gaming policies, as it has happened in Colombia, Mexico, Argentina, and a largepart of the United States and Europe.

He explained that the document establishes that the Mincetur will be the entity responsible for granting the authorizations for the use of technological platforms in gaming and sports betting, as well as in retail stores, for which the companies must be registered in the National Register of Taxpayers. Besides, they must have a legal representative in Peru and a web domain with the ending .pe in order to avoid the flight of capitals and prevent the laundering of assets, fraud, computer crimes, and any other illicit activity.

The draft bill indicates that the control of the technological platforms will be carried out through physical and/or logical, on-site, or remote access. The proposal also prohibits minors and people with gambling addiction from participating in remote gaming and sports betting. Furthermore, companies that do not have the respective sectorial authorization will be prohibited from entering into advertising or sponsorship contracts. Administrative sanctions include warning, fine from 1 to 500 UIT ($1,237 - $618,762), cancellation of authorization and/or administrative registration, disqualification for up to ten years, and permanent disqualification.

"The draft bill from Mincetur proposes a direct tax of 12% imposed on the net income (net win). Likewise, it considers a selective consumption tax of 1% on bets paid by the client. In this sense, an annual collection of around 160 million soles ($3,74 million) is anticipated, which could not only be invested in the reactivation of tourism, but also in public infrastructure projects, especially to promote sports", Minister Sanchez pointed out.

It is important to highlight that the proposal indicates that after being enacted, the Mincetur must issue the regulations within a term not exceeding 90 working days. It should be noted that, as soon as the regulation comes into force, companies must comply with the provisions of the law within 120 calendar days.

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Peru's online sports betting draft bill introduced by Foreign Trade and Tourism Ministry - Yogonet International