Proposed Consumption Tax Sparks Concern Among Peru Industry
A reintroduced 1 percent consumption tax on betting in Peru has been met with backlash by the country’s gambling industry amid fears it could prompt rises in black market activity.
An amended Law No 31557 regulated online gambling in Peru earlier this year, with the consumption tax that was previously included left out.
However, the previously discussed consumption tax on 1 percent of every bet was reintroduced by the government on Sep. 13 by Legislative Decree 1644.
While no date for the levy’s enactment has yet been announced, Apuesta Total CEO Gonzalo Perez warned the 1 percent rate was “crazy” and risked bettors looking to the illegal market instead.
Meanwhile, lawyer Nicolás Samohod Rivarola told iGB: “It would take the tax impact on [licensed operators] to high and burdensome levels, bordering on unconstitutional. And it would make many [stakeholders] think about evaluating their [presence] in the Peruvian market.”
Anatel Blocking Total Reaches 5,200 as Brazil Cracks Down on Illegal Operators
Brazil’s Ministry of Finance has instructed the government telecoms agency Anatel to block an additional 1,812 illegal gambling websites, pushing the total number of blocked domains past 5,200.
It’s the third list of domains sent by the Ministry of Finance’s Secretariat of Prizes and Bets (SPA) to Anatel, which is responsible for ensuring the sites are taken down.
The SPA has approved only 100 operators and 223 brands to remain active ahead of the legal market’s launch, with all other domains now deemed illegal and subject to blocking.
The site blocking is part of the government’s efforts to crack down on illegal and unlicensed gambling operators amid significant backlash from officials and the private sector.
Q3 Results Display Operators’ Excitement for Brazil Launch
The majority of the gambling sector have now published their results for Q3, and with the Brazil legal market launch on Jan. 1, 2025 now just weeks away, operators have been setting out their intentions.
Flutter reported year-on-year revenue growth of 4 percent in Brazil for the first nine months of 2024, and having agreed to acquire an initial 56 percent stake in NSX Group in September, CFO Rob Coldrake said Flutter was “very confident” in its approach to Brazil.
Entain, meanwhile, posted year-on-year growth of 48 percent in Brazil for Q3, the second straight quarter it achieved that figure, though CFO Rob Wood warned that with additional regulations coming from the legal market launch date onwards, that growth would likely slow in 2025.
But while Entain and Flutter are gearing up for the launch, Rush Street Interactive CEO Richard Schwartz said his company would take a “wait-and-see approach” in Brazil despite the business revealing monthly active users in its other LatAm markets of Mexico, Colombia and Peru were up 122 percent in Q3 when compared to the same period of 2023.
Betano Becomes 16th Online Operator to Receive Colombia License
The Betano brand, operated by Kaizen Gaming, has been authorized to enter the Colombian market as the 16th licensed online operator.
With its new license, Betano now stands alongside other international operators such as Betsson and Rush Street Interactive’s RushBet in Colombia’s online betting market.
Marco Emilio Hincapié, president of Coljuegos, highlighted that Betano’s licensing would support efforts to enhance funding for the nation’s health system.
“We continue to strengthen online gaming industry,” Hincapié explained. “We hope that, with the entry of this new operator, we can continue to increase funding for the health of Colombians.”
Ministry of Sport Requests Help Against Misleading YouTube Ads
Brazil’s Ministry of Sports has sought assistance from the Ministry of Justice and Public Security (MJSP) to crack down on deceptive gambling ads on YouTube.
On Nov. 18, the Ministry of Sports, through the National Secretariat for Sports Betting and Economic Development of Sports (SNAEDE), sent a letter to the MJSP urging action against influencer gambling ads, citing over 53 YouTube accounts promoting false promises of easy profits in Brazil.
The Ministry of Sports has asked the MJSP to increase its efforts in investigating influencer marketing and involve the federal police to counter the continuing issues.
The Brazilian government has taken steps to restrict influencer advertising through its gambling marketing regulations, released on 31 July, with Normative Ordinance No 1,207 limiting operators from presenting gambling as a “socially attractive” activity via influencer or celebrity marketing.
