Peru considering legalized online sports betting and gambling

[The Buzz]

With a population of more than 32 million, Peru is considering legalizing online gambling and could pass legislation before the end of the year, if approved by both Congress and the president.

Last month, a bill was introduced to the legislature by Percy Eloy Alcala Mateo of the Fuerza Popular Party. Under the terms of the new bill, online sportsbooks and casino sites would be allowed to operate and be required to pay a tax of 12% of revenue. The language of the text also contains various rules governing the operation of these gambling enterprises, such as a prohibition on underage gambling, and penalties for violations.

From OnlinePoker.net:

The most controversial section of the bill is the mandate that operators pay an upfront sum of around $166,210 to cover payouts to players, as some industry groups feel that this figure is too high and would be more reasonable with a required payment of perhaps $50,000.

Although the full sum would likely be no problem for larger internet gambling companies, it may be too burdensome for smaller entities, especially local Peruvian organizations. Commenting upon the proposal, Luis Felipe Cornejo, the general manager of Sportlimba.com, stated that “if the bar is set too high, it will hit the formal gambling houses and the informal ones will remain illegal.” Negotiations among various stakeholders are expected before the final version of the bill is agreed.

Peru’s government basically takes a hands-off approach when it comes to online gambling, with this type of real money gaming neither specifically approved of by the law nor criminalized. This is true both for individual customers as well as businesses, meaning Peru currently has a lucrative gray market for betting services.

Read more here: http://www.onlinepoker.net/poker-new...gambling/43528