Peru regulator claims 40% reduction in illegal gambling market

Peru has emerged as a regional trailblazer in the fight against illegal gambling. Just over a year after implementing sweeping regulatory reforms, the Ministry of Foreign Trade and Tourism has announced a dramatic 40% reduction in unlicensed online gambling platforms.

This milestone, celebrated by Peruvian authorities, marks a significant shift for a market that was once dominated by unregulated operators and shadowy betting sites.

The catalyst for this transformation was Law No. 31557, which came into effect in February 2024. With this legislation, Peru became the third country in Latin America, after Colombia and Argentina, to establish a comprehensive regulatory framework for online sports betting and gaming.

The law set out strict licensing requirements, including a 12% tax on net profits and a minimum license guarantee of $235,000 (~£177,000), effectively raising the bar for market entry and pushing out less reputable operators.

The Ministry of Foreign Trade and Tourism’s enforcement strategy has been multifaceted. The Directorate General of Casino Games and Slot Machines not only intensified oversight of digital platforms but also coordinated with banks and payment providers to block transactions linked to unauthorised gambling sites.

This financial chokehold forced approximately 15% of illegal operators to exit the market almost immediately.

Authorities also cracked down on illegal brick-and-mortar betting shops, further shrinking the black market’s footprint.

Since the law’s implementation, 60 technology platforms and 280 service providers have been authorised, and nine international certification labs have been accredited to ensure compliance and fairness.

The number of registered betting venues surged by 683 since December 2024, bringing the total to 4,516 nationwide.

The Ministry of Foreign Trade and Tourism credits these achievements with not only protecting consumers and promoting responsible gambling but also fostering economic growth.

The sector is projected to generate $2.5bn in 2025, fuelled by tax revenue and foreign investment.

Despite these successes, challenges remain, including industry concerns over a new 1% Selective Consumption Tax set to take effect in July 2025. Still, Peru’s regulatory push stands as a model for the region, proving that coordinated oversight and tough enforcement can deliver real results in the battle against illegal gambling.