“ The increased licence cost could have a profound impact on the industry by potentially restricting competition to the larger operators which can afford them ”
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TRAFFIC
Fig 3 : Change in search volume by key term
operators will be contractually required to use the . pe domain for their websites .
Durango believes the change will not have a large impact , rather the requirement will “ limit the availability of services to a specific jurisdiction ”.
Another change in the law is the establishment of a single 12 % tax for all income from online gaming and sports betting conducted on digital platforms with a . pe domain . Previously this tax only applied to national Peruvian operators .
According to Durango this is a change that will have a “ substantial impact ” on the tax revenue in Peru , but the effect on the industry itself is unclear .
“ It can potentially limit the competition among operators where the larger players may have more financial capacity to meet these higher tax requirements compared to smaller operators ,” she says .
In another article of the law , the cost of licences has been raised from a previous version which set it at approximately Sol
“ The increased licence cost could have a profound impact on the industry by potentially restricting competition to the larger operators which can afford them ”
STEFANIA DURANGO
990,000 (£ 208,000 /€ 239,000 /$ 261,000 ). But the law will now charge operators either 3 % of net income or Sol 2.97m .
“ This change could have a profound impact on the industry , potentially restricting competition to larger operators , including international ones , who can afford these increased licensing costs ,” says Durango .
Mincetur is also introducing a limitation on sponsorship that will only allow licensed operators to engage in sponsorship activities .
“ While notable investments in this area have been made by companies like Betsson , the overall impact on this front is expected to be minimal ,” she continues . “ However , this change may potentially encourage more sponsorships from operators who successfully obtain the necessary licence .”
Yet , as Durango says , the full impact of these changes to betting in Peru is unlikely to be seen until the law goes into effect in February 2024 .
34 • ISSUE 94 • iGB AFFILIATE LONDON 2024