Peru Plans Major Gambling Law Reform

Peru is preparing new gambling legislation that would significantly expand the powers of its regulator, bringing prediction markets, raffles, prize draws and other currently unregulated gambling activities under government supervision.

Yuri Guerra Padilla, director general of casino and slot machine gaming at the Ministry of Foreign Trade and Tourism (MINCETUR), confirmed that officials are developing a bill to broaden the country’s existing gambling framework.

The proposed legislation would extend the scope of Law 31557, which currently regulates online gaming and sports betting, and introduce a system requiring gambling activities to receive explicit authorisation from MINCETUR.

“Currently, under Peruvian law, anything that is not prohibited is permitted,” Guerra explained. “We want anything not authorised by MINCETUR to be prohibited.”

The reform would represent a significant change in Peru’s approach to gambling regulation, replacing the current system with one in which operators must obtain regulatory approval before offering covered products.

Guerra, who has more than 20 years of public-sector experience and has led the regulator since 2024, said the proposed legislation was approximately 60% complete.

MINCETUR intends to introduce the bill before the end of 2026, with the regulator targeting implementation within a year.

“We aim for it to be rolled out in less than a year,” Guerra said.

Prediction Markets and Other Gambling Products Face New Licensing Requirements

One of the most significant elements of the proposed legislation is the expansion of regulatory oversight beyond traditional online casino games and sports betting.

Under the plans, prediction markets, raffles, prize draws and other gambling-related activities that currently operate outside MINCETUR’s licensing framework would become subject to authorisation.

The changes would give the regulator greater control over which gambling products can legally be offered to Peruvian consumers.

Rather than allowing activities simply because they are not expressly prohibited, the proposed system would require operators to secure approval before entering the market.

This would also give MINCETUR additional authority to intervene against businesses offering products without the necessary licences.

Although the bill remains under development, Guerra indicated that the ministry wants to establish a more comprehensive regulatory structure covering gambling activities across the country.

MINCETUR Intensifies Enforcement Against Unlicensed Gambling Websites

Alongside the proposed legislative changes, Peru’s gambling regulator is increasing its efforts to prevent offshore operators from targeting domestic players without authorisation.

Guerra confirmed that MINCETUR blocked 50 unlicensed gambling websites last month as part of its enforcement activity.

Peru currently has 45 licensed online gambling operators, with additional international companies continuing to express interest in the regulated market.

According to Guerra, many of the industry’s largest businesses have already established a presence in the country.

“In this sports betting and online gaming market, all the biggest companies are here. We have cut off the content or payment methods of those without a licence,” he said.

The regulator is also exploring closer cooperation with major technology companies to restrict the ability of unauthorised gambling operators to reach Peruvian consumers.

MINCETUR has already made initial contact with Google and intends to approach Meta as part of its enforcement strategy.

Guerra believes that broader regulatory powers would strengthen the ministry’s ability to address illegal gambling promotion across digital platforms.

“If we get the full regulatory powers, I believe we have the technical and technological capacity, and the specialist staff, to attempt effective blocking on Meta,” he said.

Peru Considers Stricter Gambling Advertising Rules

Gambling advertising is another priority for MINCETUR, with officials reviewing additional restrictions on how operators promote their services.

Guerra confirmed that the regulator is considering tighter controls but does not currently intend to introduce a complete advertising ban.

He argued that the industry has failed to demonstrate sufficient restraint in its marketing practices.

“It’s clear that advertising, across every channel, is invading everything,” he said.

The comments follow the publication of a separate draft decree in October proposing amendments to Peru’s existing gambling regulations.

The proposed changes include stricter advertising standards, clearer requirements for identifying licensed operators and stronger restrictions on marketing aimed at minors.

The draft also introduces additional responsibilities for influencers who promote gambling products.

These measures are intended to improve oversight of gambling advertising while allowing licensed operators to continue marketing their services within defined regulatory limits.

Maximum Gambling Fines Could Fall From 200 to 70 Tax Units

Despite the proposed expansion of regulatory powers, MINCETUR is also considering changes that could reduce the financial burden of enforcement penalties on smaller gambling businesses.

Under the proposals, the maximum fine imposed on licensed operators would decrease from 200 to 70 tax units (UIT).

That would reduce the maximum penalty from approximately €285,500 to €100,000.

Guerra defended the proposed reduction, arguing that financial penalties should be proportionate to an operator’s size and available resources.

The approach is intended to prevent smaller businesses from facing penalties that are disproportionate to their financial capacity.

The regulator is also planning improvements to market transparency.

These include the development of a new platform that would publish more detailed statistics on Peru’s gambling industry.

Greater access to regulatory and market information is expected to provide operators and other stakeholders with a clearer picture of the sector’s performance.

Proposed Betting Tax Increase Raises Concerns for Licensed Operators

The regulatory reforms are being developed as Peru’s Congress considers a separate proposal to increase taxation on online gambling.

Lawmakers are examining a plan to raise the selective consumption tax on online betting from 1% to 5%.

Industry representatives have warned that the proposed increase could make operating in Peru less commercially attractive and potentially encourage licensed companies to withdraw from the market.

Guerra also expressed concern about the consequences of creating financial conditions that could drive regulated operators away.

“If companies leave, what you’ll get is more unlicensed gambling,” he warned.

The director general emphasised that maintaining a predictable regulatory environment is essential if Peru wants to continue attracting international gambling investment.

His comments highlight the challenge facing policymakers as they consider expanding regulatory oversight while also introducing higher taxes on licensed businesses.

Peru Seeks Broader Regulation Without Discouraging Investment

MINCETUR’s proposed legislation would mark a substantial expansion of Peru’s gambling regulatory framework by bringing previously unregulated products under a formal authorisation system.

The ministry is also pursuing stronger enforcement against offshore websites, closer cooperation with technology companies and tighter advertising standards.

At the same time, plans to reduce maximum financial penalties suggest an effort to make enforcement more proportionate for licensed businesses.

However, the separate proposal to increase online betting taxation could complicate those objectives if operators decide that the market is becoming less commercially viable.

With the new gambling bill approximately 60% complete, MINCETUR is aiming to introduce the legislation before the end of 2026 and implement the reforms within the following year.

The outcome will determine how far Peru extends its regulatory authority and whether it can strengthen consumer protection and enforcement while retaining the international operators already active in its licensed market.