Peru is one of the most attractive and promising markets for sports betting and gaming in Latin America. With a population of over 30 million, a stable economy and a growing middle class, Peru offers huge potential for operators who want to tap into the region's passion for sports and entertainment. However, entering the Peruvian market is not without its challenges.
Regulatory situation
Although the licensing process has been complex, sports betting in Peru is overseen by the Ministry of Foreign Trade and Tourism (Mincetur). Law 31,557 imposes a 12% tax on net income from remote gaming and sports betting, administered by the National Superintendence of Customs and Tax Administration (Sunat). Companies must request authorisation from Mincetur, establish a physical branch if foreign, and use the domain "bet.pe" for online platforms. Physical branches must be approved by Mincetur and be at least 150 metres away from schools. Licences are valid for six years and renewable.
Peruvian football also differs from European football in many aspects that affect betting markets and outcomes. In comparison to last season in the top 5 European leagues, Peruvian Primera División to date, has seen... - Double the rate of red cards - Over 60% more slide tackles
Market size
According to a recent report by Ernst & Young, the online gambling market in Peru was worth $286m in 2019 and is expected to grow at 14% CAGR (compound annual growth rate) to $439m in 2023. The main growth drivers are increasing internet penetration, smartphone adoption and disposable income of the Peruvian population, as well as the popularity of sports betting, especially football. Football accounts for about 70% of the online sports betting turnover in Peru, followed by tennis, basketball and volleyball.
How operators can stand out
Given the size and potential of the Peruvian market, it is not surprising that many operators are looking to enter or expand their presence in Peru. However, to succeed in this market, operators need to offer a differentiated and tailored product that meets the preferences and expectations of Peruvian players. One way is to focus on the local sport and football, in particular.
Football in Peru
Peruvian football is on the rise thanks to increased investment in Peru's top division Liga 1. This has led to improved facilities and coaches, and ultimately better players. As a result...
- Many more Peruvian players have gone on to play in European leagues.
- The Peruvian national team has qualified for the past two FIFA World Cups.
- Peru’s domestic clubs have also had better representation in the continent-wide Copa Libertadores and Copa Sudamericana.
As with a lot of LatAm leagues, the Peru Primera Liga takes place in summer, which is great for balancing revenues over the year
Liga 1
The league runs from February to December, with 19 teams competing in two tournaments: Apertura and Clausura. Four teams compete in the playoffs to decide the national champion – the winners of each stage and the top two teams of the aggregate table at the end of the season. The bottom two teams are relegated to the second division.
The league is far less predictable than in European football, with no team winning more than two consecutive titles since 2000.
Peruvian football also differs from European football in many aspects that affect betting markets and outcomes. In comparison to last season in the top 5 European leagues, Peruvian Primera División to date, has seen...
- Double the rate of red cards.
- Over 60% more slide tackles.
- 25% more shots from outside the box and (perhaps, consequently) nearly an extra shot required per goal.
Differentiation
When observing these types of differences, operators need to have extensive historical data and experience to know if large adjustments to their expectancies are truly justified. Overcoming this challenge can lead to a great source of differentiation for those who take the risk to offer more variety and options for players who want to bet on specific events or outcomes.
The main growth drivers are increasing internet penetration, smartphone adoption and disposable income of the Peruvian population, as well as the popularity of sports betting, especially football
Player prop betting markets allow bettors to wager on individual performance or statistics of players within a match. These markets are very popular among those who want to have more control and engagement with their bets, as well as more fun and entertainment. However, offering these markets is not easy, as it requires access to reliable and accurate data, as well as a deep understanding of the players and teams involved.
Betting insights
As with a lot of LatAm leagues, the Peru Primera Liga takes place in summer, which is great for balancing revenues over the year. Some observations on betting behaviour as we approach the three-quarter mark of the season...
- Peruvians have a strong propensity for betting on their national league but it’s important to offer a great product for neighbouring countries. Argentina has been the next most popular competition this summer.
- As you’d expect, Copa Libertadores is also popular, but less expected is that the MLS has outperformed both Brasileiro A and Liga MX.
- There has been continued growth in turnover week by week.
- Average stake size is about half that in Europe but since Peruvians take longer odds, the average liability per bet slip is nearer to parity.
Conclusion
Peru offers huge potential and opportunities for sports betting and gaming operators who want to enter or grow in Latin America. However, it is also a market that requires adaptation and innovation to meet Peruvian players’ needs. Operators who offer a differentiated and tailored product that focuses on the Peruvian football league, especially on player prop betting markets, can stand out and succeed in this competitive and dynamic environment.
Sporting Risk is a sports analytics company that specialises in building predictive models to generate pricing, betting content and Betbuilder products.
Phillips is a sports data and tech expert with 15 years’ experience working at the intersection of sports data, technology, betting and media. He has held senior commercial roles at Genius Sports and Nasdaq Inc and worked as a consultant for operators, startups and investors in the space.
