Peru's Gambling Market: Operator Paradise, Profit Battleground

In Latin America, we are currently observing two opposing trends in online gambling. While countries like Brazil struggle with hasty amendments to their young regulations, Peru faces a completely different problem. There is extreme market oversaturation. Conditions are so favorable for operators that the main battle is not against authorities, but against massive competition.

Eddie Morales, Business Development Manager at Zenith, spoke with Lucia Gando and SBC Noticias about this paradox. He emphasizes that Peru is characterized by a remarkably agile market entry. The process is more streamlined than in some established gambling regions.

Numbers and facts

Morales highlights that Peruvian regulation is very flexible. It allows for smooth processing of bureaucratic procedures. He even compares the market to Colombia, which has been regulated for much longer, noting that Peru acts faster. Another major advantage for operators is the comparatively low taxes. The system is twofold: there's a special gambling tax of 12% on Gross Gaming Revenue (GGR) and an additional 1% tax on the value of each bet, known as the Selective Consumption Tax.

“The tax burden is relatively low. 12% plus 1% represents a fairly low tax level. Even worldwide, it is one of the lowest. I would say it’s an ideal scenario for any operator,” said Morales. These attractive conditions have made Peru a sought-after destination. However, its attractiveness has an unintended consequence: the market is simply becoming too crowded. Peru only launched its regulated iGaming market in February 2024. Morales expects that by the end of the year, there will soon be 100 licensed operators active there. Local brands and international giants are vying for market share. This drives up player acquisition costs.

Background

The flip side of the coin is the low purchasing power of the local population. This does not reach the level of more mature markets. Morales classifies Peru in this regard as a “third-level market” for player value. Despite high investments in player acquisition, the return-on-investment is uncertain. Dmitry Starostenkov, CEO of EvenBet Gaming, sees Latin America as a promising market for online gaming. He noted that traffic in poker rooms stabilized in 2021. New gamification and promotion formats help maintain player retention. Henk Wolff, an iGaming consultant, warns against the consequences of excessively high taxes. He states:

„If you put the tax above the 30% threshold, you see a lot of black-market activity in that country because these operators can no longer compete.“ - Henk Wolff, iGaming consultant

He draws a parallel to the Netherlands, where a tax increase from 30.5% to 34.2% in 2025 and further to 37.8% this year resulted in a decrease in GGR for legal sports betting providers, while the black market share increased. LiveScore Bet even withdrew from the Dutch market in 2024, as profitability would only have been foreseeable after ten years. High taxes and strict regulations can squeeze legal operators and drive players to the black market. This example shows the importance of balanced regulation that considers both player protection and the competitiveness of legal providers.

Why it matters for German players

For German players, the developments in Peru are only indirectly relevant. In Germany, the gambling market has been strictly regulated since the State Treaty on Gambling 2021 (GlüStV 2021). The Gemeinsame Glücksspielbehörde der Länder (GGL) issues licenses to reputable providers. Players in Germany should exclusively choose casinos listed on the GGL whitelist. These casinos adhere to strict player protection requirements. These include a monthly deposit limit of 1,000 Euros, a stake limit of 1 Euro per spin for slot machines, and integration with the central self-exclusion system LUGAS. These measures are intended to prevent gambling addiction and ensure a safe playing environment. The problem of market oversaturation, as in Peru, does not exist here. The GGL monitors the number of licenses and ensures fair competition under clearly defined rules. German players benefit from a high level of protection and a transparent market, even if this may come at the expense of bonus offers or game variety.

What it means for GGL-licensed casinos

For GGL-licensed casinos in Germany, the experiences from Peru underscore two key points: First, they confirm the need for a regulated market that avoids both overregulation and oversaturation. GGL regulation may seem strict at first glance, but it creates a stable framework. It protects providers from ruinous competition, as seen in Peru, and from players migrating to the black market due to excessive tax burdens, as in the case of the Netherlands. Second, it highlights the importance of an appropriate tax regime. German gambling taxes are higher than in Peru, but they aim to create a fair framework. GGL casinos must focus on complying with German regulations. This includes providing a safe and responsible gaming experience. This builds trust and loyalty among players, which is more important in the long run than short-term profits in an unregulated or oversaturated market.