Thousands of jobs in Peru’s sports betting industry could be lost due to the new law passed by the Congress of the Republic, according to the Peruvian Sports Betting Association (APADELA).
The new law governing sports betting and remote gaming also has a loophole that could allow operators to avoid some tax if they don’t have a branch in Peru, said the Association.
The law establishes a 12 percent income tax on betting companies based in Peru or which have branches in the country. That effectively exempts about 100 foreign firms that operate in Peru through digital platforms.
The Association contends that the law was enacted without thought to “unfair competition” and “negatively impacting the economic livelihood of more than 275,000 people in the country who work or find their economic sustenance in this activity.”
The Association is calling on lawmakers to reconsider the law to “discuss this issue adequately, guaranteeing equal conditions for all participants in this industry: domiciled and foreign companies, whether or not they have branches in the country.”
It concluded, “From APADELA we want the necessary regulations to be established that allow the industry to modernize in accordance with international standards to continue operating in the country in a formal way, for which it is necessary to correct this serious error in the new law that would only violate free competition and will affect the formal local industry.”
Despite this opposition, the Ministry of Foreign Trade and Tourism (MINCETUR) projects the new law will generate 160 million Soles ($40 million) in new taxes.
