Forced Consolidation in Peru’s Online Gaming Market

Published on: https://www.linkedin.com/posts/carlos-fonseca-sarmiento-815a4944_after-the-initial-surge-triggered-by-the-activity-7396962659914502146-FlI2?utm_source=share&utm_medium=member_desktop&rcm=ACoAADITQqkB2Qd6mxW6dpSplPX8S-gVU93z3y4

After the initial surge triggered by the new regulation of online gaming and sports betting in Peru, the market has entered a natural adjustment phase. Of the 118 licenses originally granted, only 98 remain active today, of which 13 are temporarily suspended, leaving 85 effectively operating. This evolution reflects the competitive stabilization typical of a sector undergoing consolidation, where some operators exit due to lack of scale, while others seek efficiency through mergers or acquisitions.

Added to this dynamic is a distorting factor: the 1% Selective Consumption Tax (ISC) applied to bets placed with domiciled operators, created through a resolution issued by the Superintendency, in violation of the constitutional principle of legal reserve established in Article 74.

As a grossly unconstitutional tax, it generates a competitive asymmetry that not all operators can withstand, forcing financially weaker companies out of the market and artificially reducing competition. This effect is further compounded by the high cost of mandatory guarantees, which reinforce the trend toward a smaller and more concentrated market.

Overall, the sector is moving toward consolidation driven both by natural efficiency mechanisms and by tax distortions that undermine free competition and legal certainty.