Peru To Emerge As One of the Major iGaming Players in LatAm?
The Latin American industry has been generating a substantial amount of interest during the past few years, with the industry’s rapid growth in the region leading to multi-billion dollar revenues. This is a part of the world where passion for sport runs deep, but lottery and casino sites are also experiencing high interest. Part of this rapid growth across LatAm has been fuelled by leaps in technology, with mobile gaming becoming an ever increasing reality and ever more accessible.
Colombia has been considered as the beacon for the the Latam gaming industry, with its recent overhaul of the regulatory framework setting an example – as indicated in BtoBet’s recent Industry report – for the whole region. But whilst Colombia has been basking in the attention for quite some time due to its stable local scenario, another South American jurisdiction has been quickly following in its footsteps and emerging as a genuine prospect as the region starts to embrace and open to online gaming.
With the online gaming and sports betting legislation possibly becoming a reality for the Peruvian market later in the year, Peru has all the elements needed to emerge as a major player in the Latin American scenario.
Peru to follow in Colombia’s footsteps
With a population of 32 million people, land-based gambling having a strong presence, and a strong interest for the whole gambling context, everything points to Peru following in the footsteps of Colombia which is widely perceived as the principal example for all the Latin American region to follow. But before delving further from a jurisdictional point of view one should understand the country’s infrastructure from a mobile and internet perspective.
Peru’s mobile penetration is on a par with the regional average. While many Peruvians, especially urban dwellers, have multiple mobile subscriptions the use of mobile telephony is universal. The regulator reported in late 2017 that more than 90% of rural dwellers also have a mobile subscription.
Peru’s mobile market still has considerable potential to expand, especially given the country’s low fixed broadband penetration which has encouraged the take-up of mobile data services.
Changing perception of the iGaming industry in Peru
The negative image that the gaming “industry” in Peru has carried over the years is changing rapidly too. In only Peru’s recent past it was true that as little as four percent of gaming was legitimate.
However, this scenario has been rectified through the great efforts from the regulator’s behalf, with illegal land-based gambling all but eradicated. The task now is to do the same for the online sector. Currently online gambling, including sports betting, is informally permitted in Peru, but unregulated.
According to Manuel San Roman Benavente, the head of Peru’s gaming authority – La Dirección General de Juegos de Casino y Maquinas Tragamonedas (DGJCMT) – “A bill to regulate the online sector has already been drafted, and is soon to be presented before Congress.”
What do operators need to do to harness the potential of the region?
As is mostly the case in the iGaming industry, and Peru is no exception, it is of the utmost importance for operators targeting to enter, or seeking to diversify their operations in the region, to be able to rely on the right technical partner who will bring with him a wealth of knowledge and experience needed for a seamless launch of the business. A technical partner that will facilitate the tackling the various challenges and problematics that the region may keep in hold. In the meantime, its support department assisting and working closely with the client’s operations team to identify their needs and fulfill the everyday aspects of the job. Success or failure for operators primarily lies with the importance of not underestimating aspects such as the importance of having local insight, experience and understanding of the situation.