Peruvian Chamber addresses second online betting bill

The initiative was presented by the vice president of the agency, Leyla Chihuán Ramos

The Congress presented a second project to regulate online sports betting in Peru

Bill 3415/2018-CR seeks to regulate the operation, commercialization and/or participation in online betting games and focuses on the four main actors of this activity: the operator, the software provider, the certifying laboratory and the player.

Former volleyball player, captain of the national team and current vice president of the Congress of Peru, Leyla Chihuán Ramos, of the Fuerza Popular party, presented yesterday the Bill No. 3415/2018-CR, which proposes the comprehensive regulation of all games by Internet and Internet: the first are those whose development and result occurs on the Internet, for example, virtual letter games; and internet games are those that use the internet to facilitate interaction between the user and the operator, including betting on sports competitions.

The project seeks to regulate the operation, commercialization and/or participation in online betting games and focuses on the four main players in this activity: the operator, the software provider, the certifying laboratory and the player.

In her statement, Ramos portrayed reasons why this is a great opportunity for countries like Peru that have extensive experience in gambling regulation in order to regulate this activity and gain taxation benefits (given a 10% gross profit tax is being discussed) and, unlike Colombia, Peru would contemplate users who are not residing in Peru. In this regard, Ramos points out that an online game provider attracting bets from residents of other countries in the region but taxed in Peru would translate as foreign tourists coming to Peru and consuming various tourist services, therefore it is key that the tax rate is adequate enough to obtain new tax resources from an activity that currently works but does not generate any benefit for the Peruvian State.

As a professional athlete Ramos is, she seeks to promote sports through this project. Although congressmen cannot create taxes for predetermined purposes, the aim is to apply the same structure from existing slot machine and casino games regulations to this bill, whose 30% of the proceeds go towards the institutional development of the sport.

Among other new features included in the project is the creation of the offense of illegal operation or promotion of online betting games with a four-year penalty and disqualification from exercising as owner, shareholder, manager or worker of the activity or of any betting game. It is also prohibited to offer Internet gambling games from Peru or from abroad to people resident in Peru if they do not have the gambling license of the competent authority. It is also prohibited to participate in a website that does not have a Gaming License or to advertise in Peru or through any mass media broadcast in Peru, including by cable television, with respect to those websites that offer games of bet on internet whose operator lacks a game license granted by the gaming authority.

The figure of the "Betting Houses" is also created, as the establishments other than the current gambling rooms of casinos and slot machines, exclusively intended for people to participate in online betting games. Additionally, it also allows that in the current gaming rooms these games can be operated or directly on the internet through any remote access device. The authority will be the General Directorate of Casino Games and Slot Machines and will have an access code to review the game information developed by the operator, not being mandatory that the server of the virtual platform is located in the Peruvian territory. It is proposed that the licenses will be granted for five renewable years and all operators must present a guarantee to ensure payment of the prizes and obligations with the State equivalent to 200 Tax Units (approximately USD 250,000).

Finally, it is provided that the Law will become effective the day after the publication of its Regulations in the Official Gazette El Peruano and it is granted 90 days for the approval of the Regulation by the Executive Power, but it is required to the Directorate General of Games of Casino and Slot Machines, under responsibility, that in a period no longer than 60 days present its proposal of Regulation.

Finally, it is provided that the Law will become effective the day after the publication of its Regulations in the Official Gazette El Peruano and it is granted 90 days for the approval of the Regulation by the Executive Power, but it is required to the Directorate General of Games of Casino and Slot Machines, under responsibility, that in a period no longer than 60 days present its proposal of Regulation.

Next year, Peru will organize the Pan-American games and one of the government's main concerns is financing. In her project, Congresswoman Chihuan proposes as a good option to finance the organization of this event and develop a true sport promotion policy, the regulation of this activity.

This week legislators Percy Eloy Alcalá Mateo, Mario Fidel Mantilla Medina, Francisco Javier Villavicencio Cárdenas, Juan Carlo Yuyes Meza, Wilmer Aguilar Montenegro, Israel Titolazo Julca and Víctor Augusto Albrecht Rodríguez, also from the Fuerza Popular party, presented another project with the same objective.

Access here to Bill 3415/2018-CR.