A new more regulated Peru could eventually trigger a domino-effect from other countries in the region to regularize themselves
While much of the global iGaming industry has set its sights on Colombia, another South American jurisdiction has quietly emerged as an equally enticing prospect as the region begins to open to iGaming.
It is a well-known fact that the iGaming market in Peru offers predominantly a land-based gaming experience. From a retail perspective Peru has built a strong reputation, with experts across the region widely viewing the current regulatory framework as a big success.
In the future, operators will be looking at an ever-evolving scenario where the iGaming industry in all Latin America will be regulated, possibly with Colombia’s and Peru’s regulatory environment being set as the major example for the region to follow.
Operators already conducting business in the region will thus be provided with the perfect opportunity to expand their activities in other neighboring countries, and with BtoBet already meeting all the necessary stringent requirements for Peru’s gambling regulatory body, it will be in an ideal situation to partner and assist technically all operators interested in such an expansion.
But, what does this mean for the other LatAm countries?
Acting in other LatAm countries in the context of local rules
With a possible scenario where the majority, if not all, of the LatAm region being regulated in a year or two, this transition is also characterizing the agenda at industry level. A regulatory framework across all region will bring about a transitioning to a regulated environment, a scenario that will put companies in the ideal position to target audiences within the market. A strongly regulated LatAm region will also ensure amongst other things the fundamental aspect of integrity through a highly scrutinized certification process, with the creation of various regulatory agencies that will attract long-term investment and create trust within the consumers. With new regulations in Peru and other LatAm countries, BtoBet ensures that it assists operators with the practice of conducting business according to both local and global considerations.
Peru: An opportunity and an example for the other countries in LatAm region
“The accomplishments achieved in terms of regulation and control of the land-based industry have consolidated Peru’s position as a new model for Latin American jurisdictions this year, not only for its economic, legal and tax stability, but also for the constant push towards development and technological evolution,” says Manuel San Román Benavente.
The president of DGJCMT is now looking to build on the strong foundations of the land-based sector and regulate other forms of gambling. “It is necessary to establish clear rules that allow fair competition and offer a safe space for users,” he says.
Although online gaming and sports betting in Peru are not prohibited, there is no legal framework for these activities at present.
According to the regulator, “one of the biggest challenges for the DGJCMT in 2018 will be the approval of a modern, efficient and transparent proposal to regulate online gaming and sports betting”.
He added that the proposed legislation for this is currently at the final stage of validation, prior to its introduction before Congress.
Figures from DGJCMT show that sports betting turnover in 2017 amounted to US$346m. “This number will grow further once regulation is in place and more operators enter the market. We’ve held conversations with companies that have shown interest in expanding into Peru when the market is properly regulated,” says San Román Benavente.
To sum up, Latin America has been attracting substantial interest from operators keen to diversify their activities away from the costly European scenario. Colombia has been a successful story and a reference for the region. However other countries, spearheaded by Peru, are also making a name for themselves in the region. And the prospect of a stable legal framework that acts as a safeguard for the substantial investments made by operators, whilst also ensuring the players’ interest, is a milestone not to be disregarded. With local authorities seeking to regularize the online market, operators are setting their eyes on the benefits they could reap through such a strongly supervised environment. However, as is most often the case in the iGaming industry, their success usually depends on making the right decisions as regards their choice of the technical partner.