Peru to legalise sports gambling

Peru is on the verge of legalising sports betting. Bill 3397/2018-CE, has been introduced in the parliament of the country by Percy Eloy Alcala Mateo of the Fuerza Popular party to make this happen. The bill has comprehensive proposals covering all the aspects of sports wagering. One of the bill’s proposals is that sportsbooks have to pay a monthly tax of 12 per cent, which would be calculated against the difference between what was taken in by the sportsbooks and what was paid out.

Currently, sportsbooks operate in the country, but are not legislated. As pointed out by Luis Felipe Cornejo, the general manager of Sportimba.com, sports gambling operators only pay an income tax and, for his part, the additional 12 per cent is acceptable, as it would bring the tax rate in line with what is seen in other countries.

The bill would also provide language to establish where sportsbook could legally operate, guarantees mandated to cover payouts and penalties for infractions. While most of the bill’s components are agreeable to those in the sports gambling industry, there are a couple of sticky points.

The bill wants to establish that all sportsbooks pay a guarantee of the equivalent of US$166,210 to cover payouts, which some consider too high. Cornejo has recommended that the guarantee be reduced to one-third of the suggested amount.

There are between 20–25 sportsbooks currently operating in Peru, either through an online or a physical venue. The industry has gathered a significant amount of attention over the last five year and many expect that Peru could see massive growth in the coming years.

Source: CalvinAyre