International edition
September 20, 2021

Exclusive interview with Karen Sierra-Hughes, Director of Latin America and Caribbean Government Relations and Business Development, GLI

“Peru has a history of strict adaptation processes and formalization of activity”

“Peru has a history of strict adaptation processes and formalization of activity”
GLI's Karen Sierra-Hughes sat down with Yogonet to discuss the Peruvian market, often referred to as an example of regulatory success. GLI will be showcasing its testing services at the upcoming PGS, which will take place on June 15 – 16 in Lima.
Peru | 05/30/2016

GLI's Karen Sierra-Hughes sat down with Yogonet to discuss the Peruvian market, often referred to as an example of regulatory success. GLI will be showcasing its testing services at the upcoming PGS, which will take place on June 15 – 16 in Lima.

P

eru is always mentioned as one of the more mature gaming markets in Latin America and its regulatory model is often cited as an example. What challenges face both the regulator and operators of a market that has reached this stage? What tools and services GLI offers to Accompany these challenges?

There are many different challenges that emerging and established markets face. For example, emerging markets have many hurdles ahead of them as they lay the foundation for gaming regulation. Regulators in these emerging jurisdictions are in the process of determining what works best for their region, and they are either establishing their own regulation and/or using GLI’s Standard Series as a guide. In established and stable gaming markets, such as Peru, regulators are faced with the challenge of regulating new games and technologies – iGaming and sports betting are hot topics in the region right now. Gaming Laboratories International’s (GLI®) experts are not only able to support our clients by providing consultation during gaming standard drafting, but also alert regulators to advancing technologies in other jurisdictions so they can be prepared for the future. GLI is proud to offer value-added tools, like askGLI® and GLI Mobile®, allowing regulators to be in constant contact with the lab and our experts should they need advice. Whether it is training via GLI University®, new technology consultation, annual rule and regulation review or rule-writing, GLI’s experts are happy to provide any support our clients need.

For the operators, a mature and well-regulated market intensifies the need for them to innovate and have new and exciting product to compete for players’ preference. Operators in Peru adapted to the regulations established in the past years, and they are now at a mature state where innovation will be their main challenge. 

"Peru was the first jurisdiction in Latin America to regulate and implement the certification process"

Peru implemented the online control system several years ago. Colombia has started with its implementation after several postponements. And the province of Mendoza, in Argentina, is reviewing the contract with the dealership, for example. From your opinion, what benefits the system brings online control? Why it has proved beneficial in Peru and other jurisdictions it so difficult to implement?

Implementing an online control system allows the regulator to have complete knowledge and understanding of his or her market. Regulators are able to have more effective control of the gaming activity in their jurisdiction. Most importantly, with the Latin American and Caribbean government relying heavily on the tax revenue that gaming produces, an online control system can not only make sure revenue is being collected correctly, but it can also help create an honest, competitive and safe environment for all parties involved. During past Latin American and Caribbean Regulators Roundtables, we have discussed the benefits of online control systems and their functions with our clients, and we suspect it will be a topic of discussion at our upcoming Regulators Roundtable in Curacao this August. Actually, it was our first Regulators Roundtable in Peru in 2013 that the Latin American and Caribbean regulators had the opportunity to visit the Peru regulators’ data center and get a first-hand, detailed demonstration on its capability and the way they achieved the implementation. Countries like Colombia and Bolivia utilized that important reference to develop their control process

Operators will be able to identify operational trends, get to know their customers better and optimize their operation’s effectiveness. During past Latin American and Caribbean Regulators Roundtables, we have discussed the benefits of online control systems and their functions with our clients, and we suspect it will be a topic of discussion at our upcoming Regulators Roundtable in Curacao this August.

Because every market is different, the difficulties and challenges for the implementation of an online control system will also vary. It has been beneficial to the Peruvian market because the country has a history of strict adaptation processes and formalization of activity. A certified machines process has been in place there since 1998, which has reduced the possibility of gaming devices not capable of connecting to a centralized system. Peruvian regulators did great work on understand how the system works globally, took what they considered as appropriate to control their jurisdiction per their own specific needs, and they have continuously evaluated its operation and are more than willing to update system regulation as needed to improve its effectiveness.

"The stability of the regulatory entity is beneficial to all because they can make short, medium and long term plans"

What does Peru mean to GLI? What are your expectations for this market in the short and long term?

We have been working with regulators across Latin America and the Caribbean for almost 20 years, helping them to improve regulation in their own jurisdictions. Peru was the first jurisdiction in Latin America to regulate and implement the certification process. GLI worked closely with Peru from the beginning of this process, and we have been extensively involved in the region ever since. We have seen the country mature, grow and become a very stable jurisdiction that is utilized by many manufacturers as a platform to enter the Latin American and Caribbean region. Peru is a model regulatory structure that GLI is proud to work with – we have an office established in the country. It is an advanced marketplace with established framework that others can rely on and grown from. The stability of the regulatory entity is beneficial to all because they can make short, medium and long term plans. Also, the knowledge that the regulator has of the market and the industry, paired with a good relationship established with operators and suppliers, makes the Peruvian market and good market.

The Latin American and Caribbean jurisdictions have been looking up to Peru because of the success model that it represents for the region, including the formalization of 100 percent of the gaming industry and the control and reporting process that has been implemented and continues to be innovated. We are very grateful for the opportunity to work with Peru regulators, and we look forward to accompanying their efforts for many years to come.  

Visit GLI to find out more.

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