Peru Might Soon Open Up A Sports Gambling Market

Lawmakers in Peru are currently looking over a bill that might soon legalize sports gambling in the country. The gambling market in Peru has become quite popular I the recent times and this new bill introduced by Percy Eloy Alcala Mateo from the Fuerza Popular party wishes to tap into this popularity. The Congress has already received the bill – Bill 3397/2018-CE which would legalize sports gambling in the country.

The bill covers a wide range of sectors connected to sports gambling and also includes details concerning the taxes that would be applicable on it. This is in line with the other forms of gambling such as casinos and lotteries. The sportsbooks which would be established would have to pay a monthly tax of 12%. This would be based on the difference between the revenue that was taken in by the books and the amount that was paid out. Peru currently does have sports books, but they are not formally legislated. The general manager of Sportimba.com, Luis Felipe Cornejo, said that the unregulated nature of the sports gambling sector led to the sportsbooks paying only an income tax for their operations.  Hence, the 12% tax levied on sports gambling by the government was acceptable. While the expenditures in sports gambling sector would be higher due to the extra tax, it will still be easily manageable.

The bill will also legally dictate the areas and the norms according to which the sportsbooks will operate. The bill also includes the penalties and cover payouts for any kind of infractions or unethical practices. The bill has been well received by the sports gambling community in the country, but there are certain problematic issues. For example, the bill aims to levy a cover payout to the amount of US$ 166,210 which is considered too high by some. Cornejo, however, has guaranteed to reduce the amount to one-third of the current value. In a statement, he has commented that the guarantee for the cover-up is acceptable, but the value is just too high. According to him this will put extra pressure on the formal gambling houses and promote the informal sector.

Today there are around 20 to 25 sports gambling books in Peru. They operate through online portals and physical gambling houses. In the last five years, the industry has grown to attract major attention from the public and the government.