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  • Paris Gaming Clubs Face Closure Amid Legislative Stalemate

    Paris Gaming Clubs Face Closure Amid Legislative Stalemate

    Legislative gridlock threatens the future of Paris’s gaming clubs, potentially leaving 1,500 jobs in jeopardy and major poker events hanging in the balance.

    Paris’s renowned “Clubs de Jeux” are on the brink of closure, with a December 31 deadline fast approaching and no solution in sight. These clubs, which operate under an experimental framework designed to replace the city’s banned casinos, now face an uncertain future due to a prolonged legislative delay.

    The cause of this looming shutdown? The French National Assembly dissolved earlier this year, leading to the collapse of key government processes. Efforts to extend the clubs’ legal status have stalled, leaving the gaming establishments without a legal framework to operate beyond the end of the year. This has thrown the future of 1,500 jobs into doubt, while simultaneously threatening the city’s international gaming events, such as the European Championship of Poker and the PokerStars European Poker Tour Paris.

    A High-Stakes Problem: The Impact of the Shutdown

    The Paris gaming clubs have become a significant contributor to the city’s economy. In 2023 alone, they generated €119 million ($124.97 million) in gross gaming revenue, a sizable portion of which—approximately €40 million—was redirected to the state. These figures paint a clear picture: the clubs are not just a source of entertainment, but a substantial economic engine for the capital.

    “Without the clubs, it’s a social and economic catastrophe,” said Christine Bonneau, managing director of Club Barrière. “It’s mentally draining for the teams. We are completely in the dark about what will happen next.”

    This sense of uncertainty is amplified by the sheer scale of the shutdown. Not only would 1,500 employees lose their jobs, but major international poker tournaments—events that draw global crowds—are at risk of being canceled. Paris, a city already renowned for its hospitality and gaming culture, may lose its position as a top destination for high-profile poker competitions.

    The Root Cause: Political Deadlock

    The shutdown’s root cause lies in the unresolved legislative stalemate within the French government. In June, the French National Assembly dissolved, and with it, the Finance Bill that was supposed to extend the clubs’ operational phase. Without this extension, the gaming clubs have no legal standing to continue beyond the end of the year.

    In the absence of a functioning government, talks about the future of the gaming clubs remain in limbo. Despite efforts to push a special law through Parliament to address the 2025 budget, the bill does not contain provisions to save the gaming clubs, leaving operators and employees on edge.

    “If we cannot operate in 2025, it could take four to six months before the clubs are allowed to reopen,” one industry insider explained. This prolonged downtime would be devastating for the entire sector, further amplifying the financial and social implications of the shutdown.

    Failed Proposals and Growing Concern

    Efforts to secure a new legislative framework for the gaming clubs have met with frustration. The issue became further complicated when proposals to legalize online casinos—also part of the stalled Finance Bill—were abandoned. This setback has left stakeholders questioning the likelihood of any meaningful progress before the year’s end.

    Industry professionals argue that the clubs’ closure would not only put thousands out of work but could also push gambling underground. Such an outcome could result in significant tax revenue losses for the government, with the potential rise of unregulated gambling operations posing a further risk to public safety and the integrity of the sector.

    The situation has also sparked concern among professional unions and club operators. “We are at a crossroads. We need to know if we are forced to close and whether employees can access technical unemployment or partial activity,” said Sébastien Leclercq, Country Manager for Circus Casino in France, speaking on the Dans le Carré talk show. “It’s complicated because we no longer have a law to rely on, and there’s no money in the coffers.”

    The Closer Look: What Happens Next?

    Despite the dire circumstances, many remain hopeful that the French government will act swiftly to resolve the issue. However, the ongoing political paralysis makes a quick resolution unlikely. As of now, both industry leaders and employees are left in a state of limbo, unsure of whether they will return to work in January or face a prolonged shutdown.

    There is still a glimmer of hope that a new law could emerge to save the clubs, but with each passing day, that hope seems to diminish. The gaming industry is calling for decisive action from lawmakers, but whether or not that will materialize in time to prevent the shutdown is uncertain.

    The outcome of this battle will have long-lasting implications not only for the clubs but also for the wider French gaming sector. If the clubs are forced to shut down, the government may face the task of rebuilding a legal framework from the ground up—a process that could take years. In the meantime, Paris’s gaming culture, and the thousands of people who rely on it, are left waiting for the political climate to shift.

  • DRGT Prepares to Unveil Exciting New Solutions at ICE Barcelona 2025

    DRGT Prepares to Unveil Exciting New Solutions at ICE Barcelona 2025

    With the countdown to ICE Barcelona 2025 ticking down, DRGT executives are excited about the new opportunities on the horizon. The gaming industry’s largest exhibition is just around the corner, and DRGT is gearing up to showcase its latest products and solutions to a global audience. This year’s event is set to be particularly significant, marking a new venue, a new city, and a new era of possibilities for both DRGT and the broader gaming world.

    DRGT’s Growing Global Presence

    For Marco Herrera, DRGT’s CEO, 2024 has been a year full of milestones. Despite the challenges the year has brought, Herrera is particularly optimistic about the company’s future. He credits DRGT’s success in both Europe and Mexico for laying a strong foundation as the company prepares for its biggest showcase yet. “These are exciting times. I am thankful I was able to join the team when I did,” Herrera says, reflecting on his recent addition to the company in September 2024. His leadership comes at a time when DRGT is positioning itself for impressive growth in the international market.

    Barcelona’s new venue for ICE 2025 is set to be a fresh experience for many of the exhibitors and attendees, but for Herrera, it’s a return to a familiar city. Having spent five years working in Barcelona in the past, Herrera feels particularly connected to the city, even as it’s poised to host one of the most exciting gaming showcases to date. “Barcelona is not new to me. It’s a warmer city, especially in the winter, but it’s a fantastic place for a new chapter in ICE’s history,” he adds.

    New Deals and Licensing Agreements in Europe

    As DRGT prepares to take its presence at ICE Barcelona to the next level, the company has also made strategic moves in Europe. Andreas Duller, Managing Director for DRGT Austria, shared recent successes, including securing a supplier license in Bulgaria. This license is a game changer for DRGT’s growing portfolio in Eastern Europe. “We’re set to roll out our management system solution to Efbet’s 58 gambling halls, sports bars, and casinos, which encompass around 2,500 machines,” Duller says. Additionally, DRGT is working on a wide-area progressive jackpot for Efbet, which will further solidify its standing in the European market.

    Expanding beyond Bulgaria, Laurence Herbots, Managing Director of DRGT Online, highlights the company’s recent license acquisition in France. With DRGT’s roots firmly planted in Europe, the company has already established significant market share across the continent. “We are the market leader in Belgium and Switzerland, and we have a strong presence in several other countries such as Albania, Austria, and Germany,” Herbots notes. This expansion into France, along with the addition of new partners and licenses, demonstrates DRGT’s strong commitment to solidifying its position in Europe.

    Herbots also reveals that DRGT’s sister company, Infiniti, has received the license to operate Grasse Casino in Alpes-Maritimes, set to open in January 2025. This development has positioned DRGT perfectly to pursue further market share in France. With a combination of strategic partnerships, new licenses, and an ever-expanding footprint, DRGT is clearly ready to make waves at ICE Barcelona 2025.

    A Bright Future for DRGT in Africa and Mexico

    As DRGT focuses on its European expansion, there is also plenty of excitement brewing in other regions. Duncan Pollock, the Managing Director for DRGT Africa, has been eyeing new opportunities in Johannesburg. While specific details remain under wraps, Pollock expresses confidence that the upcoming year will bring several exciting prospects for the company’s operations in Africa. “We’re looking forward to seeing some great opportunities materialize in the next 12 months,” he says, hinting at the ambitious growth plans DRGT has for the African market.

    Meanwhile, in Mexico, DRGT has been making strides with its expanding presence in the region. As part of its global strategy, the company is exploring new avenues to offer cutting-edge solutions and technology, which have already begun to make an impact in the country. Herrera emphasizes the importance of international expansion, noting how DRGT’s broadening presence will ensure the company remains a leader in the gaming industry, not just in Europe but globally.

    What to Expect at ICE Barcelona 2025

    As ICE Barcelona 2025 draws nearer, the anticipation surrounding DRGT’s exhibition is palpable. The company’s latest innovations, including new software solutions and cutting-edge gaming products, are expected to be a highlight of the tradeshow. DRGT’s comprehensive portfolio is designed to cater to the growing demand for advanced management systems, seamless gaming experiences, and progressive jackpot solutions. Visitors to DRGT’s booth can expect to see firsthand how the company’s forward-thinking approach is transforming the gaming landscape.

    While the excitement for ICE Barcelona continues to build, DRGT executives are optimistic about the future. With licenses secured in key regions like Bulgaria and France, strategic partnerships on the rise, and an ever-growing international footprint, the company is positioned for another successful year. For DRGT, ICE Barcelona will not just be a showcase of its latest products, but also a celebration of the company’s global reach and the future of gaming.

  • China Cracks Down on Black-Market Banks, Arrests 846 Individuals in Massive Operation

    China Cracks Down on Black-Market Banks, Arrests 846 Individuals in Massive Operation

  • Regulating the Game 2025 Announces Sportsbet CEO Barni Evans as Featured Speaker

    Regulating the Game 2025 Announces Sportsbet CEO Barni Evans as Featured Speaker

    Barni Evans, CEO of Australia’s largest online wagering operator, Sportsbet, has been confirmed as a featured speaker at the highly anticipated 2025 edition of the Regulating the Game conference. Set to take place from March 10–13, 2025, at the Sofitel Sydney Darling Harbour, the event promises to bring together the brightest minds in the gambling industry to discuss regulation and its future in Australia.

    A Powerful Voice in Wagering Regulation

    Barni Evans’ experience is unmatched in the Australian online wagering sector. Leading Sportsbet, Evans oversees 2.2 million customers and 1,300 staff across multiple locations, including Melbourne, Sydney, and Darwin. His career spans over two decades with the global Flutter Group, which owns Sportsbet. Evans’ journey within the group saw him take on crucial roles in marketing and commercial operations before becoming the CEO in 2018.

    As the leader of such a prominent company, Evans brings a unique perspective on the evolution of wagering regulation in Australia. In a recent statement, Evans noted, “Wagering regulation in Australia has evolved significantly and continues to be an area of intense focus for those within our industry and society in general.” He emphasized the current critical juncture the industry faces and highlighted the importance of forums like Regulating the Game in shaping sustainable regulations.

    Evans will speak on the role of industry leaders in driving innovation and creating regulations that balance business growth with public responsibility. “It is important that events like Regulating the Game and resulting dialogue can help shape appropriate regulation for a sustainable future,” he added.

    Conference to Tackle Key Challenges in the Gambling Sector

    Paul Newson, Principal at Vanguard Overwatch, spoke highly of Evans’ involvement in the event. “Barni’s forward-looking perspective on the sector, combined with his deep understanding of both its challenges and opportunities, is invaluable to the conference,” Newson said. He further stressed the importance of Evans’ expertise in guiding the gambling industry through crucial regulatory challenges.

    “Barni’s role as CEO of the largest online wagering operator in Australia, combined with his position within the global Flutter Group, means he plays a key part in shaping how the sector evolves,” Newson continued. “His experience is pivotal in promoting safer gambling practices, driving innovation, and ensuring the implementation of efficient regulations.”

    During his session, Evans will explore some of the most critical issues facing the industry today. These include the need for effective regulation, fostering trust within the community, and the future of digital wagering. Attendees will also have the opportunity to engage directly with Evans and delve into these topics, gaining insights from one of the most influential figures in Australian sports betting.

    Regulating the Game: A Critical Gathering for Industry Professionals

    Now entering its fifth year, Regulating the Game is a key event for anyone involved in gambling regulation and policy. The conference brings together experts, regulators, and industry professionals to discuss challenges facing the industry and how regulation can evolve to meet these challenges.

    The focus of the 2025 conference will be to foster meaningful dialogue on the direction of the industry, the public policy debates surrounding gambling, and the role of regulation in maintaining a fair, responsible gambling environment. By discussing these topics in-depth, the event hopes to drive the future of a sustainable gambling industry.

    For industry professionals, the conference offers a chance to learn from leading experts, share ideas, and work together to tackle the most pressing issues in gambling regulation today. Whether you’re a regulator, operator, or involved in policy-making, Regulating the Game is the must-attend event for anyone looking to make a difference in the sector.

  • Uzbekistan to Enforce New Licensing Rules for Online Gambling and Lotteries from 2025

    Uzbekistan to Enforce New Licensing Rules for Online Gambling and Lotteries from 2025

  • Kansas Sports Betting Hits Record $291 Million in November, Boosted by NFL Wagers

    Kansas Sports Betting Hits Record $291 Million in November, Boosted by NFL Wagers

    Kansas set a new sports betting milestone in November, with bettors wagering a record-breaking $291 million. The figure marks the state’s highest monthly handle since legalised betting launched, driven largely by NFL enthusiasm and Kansas City Chiefs fans eager to back their team’s Super Bowl aspirations.

    NFL Fuels Record-Breaking Numbers

    The $291 million handle represents a 5.5% increase over October’s $275.9 million and an 11.5% jump from November 2023’s $260.9 million, according to state reports. The spike aligns perfectly with the heart of the NFL season, as sports betting interest tends to surge during football’s prime months.

    The Kansas City Chiefs played a significant role in driving wagers. With 12 wins out of 13 games, the team remains a top contender for Super Bowl LIX. Even their mid-November loss to the Buffalo Bills likely padded sportsbook revenues, as bettors banking on the Chiefs came up short.

    Online Betting Dominates the Market

    The overwhelming majority of Kansas’ betting handle came from online platforms.

    • Online sportsbooks accounted for $279 million, or 96% of the monthly total.
    • This online activity generated $24.6 million in revenue for operators, highlighting the dominance of mobile betting.

    Leading the online pack was DraftKings, which handled a staggering $128 million in bets and took home $11.7 million in revenue.
    FanDuel followed with $86.5 million in handle and $8.9 million in revenue.

    Other notable performers included:

    • BetMGM: $26.2 million handle | $1.7 million revenue
    • ESPN BET: $12.3 million handle | $786,023 revenue

    Kansas bettors clearly favour the convenience of mobile wagering, a trend consistent across the United States.

    Retail Sportsbooks See Steady Gains

    While online sportsbooks dominated, Kansas’ four retail sportsbooks posted solid numbers as well. Combined, they reported:

    • $12 million in handle
    • $873,172 in revenue

    The standout performer in the retail sector was ESPN BET at Hollywood Casino, leading with:

    • $9.1 million in handle
    • $568,087 in revenue

    Though smaller in scale compared to online giants, retail sportsbooks maintain their place as gathering hubs for more traditional bettors.

    Betting Trends and NFL’s Continued Impact

    November marks the third month of the 2024-25 NFL season, traditionally one of the most lucrative windows for sportsbooks. Since legalising sports betting, Kansas has seen a consistent spike in activity each September as football returns, a trend that accelerates deeper into the season.

    The American Gaming Association projects that U.S. bettors will wager around $35 billion on NFL games this season alone. Kansas, bolstered by its Chiefs fanbase and growing sports betting culture, appears poised to capture its share of this booming market.

    Looking Ahead: Postseason Potential

    The November record could be a preview of even bigger numbers to come. As the NFL postseason approaches, sportsbooks typically see betting intensify, particularly when local favourites like the Chiefs are in the mix. Kansas operators will undoubtedly capitalise on the playoff excitement, with Super Bowl wagers providing an additional windfall.

    For now, the November surge cements Kansas’ status as a growing player in the U.S. sports betting landscape. With a robust NFL season underway and continued interest in mobile wagering, the state’s sportsbooks have their eyes firmly set on maintaining this momentum into the new year.

    • November Handle: $291 million (Record high)
    • Online Betting: 96% of total handle
    • Top Performers: DraftKings ($128M), FanDuel ($86.5M)
    • Retail Leader: ESPN BET at Hollywood Casino ($9.1M handle)

    As Kansas City Chiefs fans keep dreaming of Super Bowl glory, one thing’s for sure: sports betting in Kansas is thriving.

  • PrizePicks Opens Expanded Headquarters in Atlanta, Promises 1,000 Jobs Over Seven Years

    PrizePicks Opens Expanded Headquarters in Atlanta, Promises 1,000 Jobs Over Seven Years

    Daily fantasy sports company PrizePicks officially celebrated the opening of its new, expanded headquarters in Atlanta with a ribbon-cutting ceremony on Thursday. Georgia Governor Brian Kemp, who attended as the guest of honour, praised the company’s relocation as a significant milestone for economic development and job creation in the state.

    Situated in Atlanta’s Star Metals high-rise in West Midtown—one of the city’s premier office spaces—the 33,000-square-foot corporate hub will fuse Atlanta’s cultural vibe with the energy of a Las Vegas sportsbook. Expect plenty of TV screens, sports-themed decor, and a workspace designed to reflect the company’s digital-first, entertainment-driven ethos.

    Mike Ybarra, CEO of PrizePicks, described the aesthetic to The Atlanta Journal-Constitution:
    “Imagine you’re in Las Vegas and you see all those screens with games on them. We’re going to mirror that here.”

    The relocation highlights Atlanta’s increasing appeal as a technology and sports innovation hub while spotlighting PrizePicks’ plans to add 1,000 jobs over the next seven years.

    Atlanta as a Tech and Sports Powerhouse

    For Governor Kemp, the PrizePicks expansion reinforces two of Georgia’s fastest-growing industries—technology and sports. Speaking at the event, Kemp highlighted the economic opportunities created through expansions like this, noting that such moves brought 9,800 new jobs to Georgia in the most recent fiscal year.

    “This HQ opening is a testament to these companies and these innovators’ work,” Kemp said. He also added that developments like PrizePicks’ success contribute to Atlanta’s reputation as a magnet for talent and investment.

    While the Star Metals location is a symbolic nod to Atlanta’s high-profile office real estate, the physical space itself reflects the company’s growth ambitions. Designed to balance functionality and flair, the headquarters brings together corporate teams under one roof while reinforcing the DFS platform’s sports-driven identity.

    For PrizePicks, the move solidifies its place as a major player in the daily fantasy sports market—an industry that continues to grow despite ongoing debates over sports betting laws in Georgia.

    DFS Thrives Amid Georgia’s Sports Betting Uncertainty

    Georgia’s strict stance on sports gambling remains a controversial point in local politics. While sports betting remains illegal in the state, PrizePicks—and other DFS platforms—argue they operate within legal boundaries by offering “games of skill.” This distinction allows users to place wagers based on individual player performances rather than traditional team outcomes.

    Ybarra likened the platform’s users to financial managers: “Daily fantasy sports is very much similar in terms of the lineups, the characteristics, the stats, the knowledge, and the expertise you have to have in order to be successful.”

    Ybarra, who took over as CEO in August, is steering PrizePicks through a period of rapid growth. Founder Adam Wexler, now serving as executive chairman, remains a key figure in shaping the company’s direction.

    Still, the legal ambiguity surrounding DFS and sports betting in Georgia cannot be ignored. Proponents of legalising sports gambling argue that the state could generate significant tax revenue, which could be channelled into college scholarships and other public programmes. Yet, efforts to legalise sports betting have faced repeated opposition, particularly from religious conservatives.

    Kemp has remained measured in his stance. While he attended the PrizePicks ribbon-cutting and applauded the company’s success, he reiterated his cautious position on broader gambling legislation. “My whole thing is that if we’re going to do something like that, that it does not cannibalise the lottery and the HOPE scholarship,” Kemp said.

    PrizePicks Continues Growth as Sports Interest Surges

    PrizePicks’ rise mirrors a larger trend in sports fandom and digital engagement. The platform has become one of the most downloaded sports apps in the U.S., attracting fans looking for interactive and financially engaging experiences around sports. Users can wager on players’ individual stats—rushing yards, three-pointers made, strikeouts thrown—creating a personalised element that traditional betting models often lack.

    The company’s move to Atlanta places it within a city already known for major sports franchises, a passionate fan base, and increasing investment in tech-driven businesses. West Midtown’s Star Metals, one of Atlanta’s priciest and most modern office developments, positions the company to attract top-tier talent and reflect its image as a market leader.

    The PrizePicks relocation isn’t just about square footage. It’s about visibility, identity, and growth. For a company that thrives on blending sports with tech, the new headquarters—complete with its Las Vegas-style ambiance—embodies that vision perfectly.

    One thing’s clear: while Georgia lawmakers remain divided over sports betting, PrizePicks is betting on Atlanta.

  • Gambling.com Group to Acquire OddsJam Parent Company for $160 Million

    Gambling.com Group to Acquire OddsJam Parent Company for $160 Million

  • Brazil’s Betting Sites Surge 24.45% in Q3 2024, Driven by Mobile Dominance

    Brazil’s Betting Sites Surge 24.45% in Q3 2024, Driven by Mobile Dominance

    The online gambling industry in Brazil is showing no signs of slowing down, with platform visits soaring by 24.45% in Q3 2024 compared to the same period last year. Data from Similarweb, published by BNLData, highlights the sector’s incredible momentum, as gambling websites registered 3.983 billion visits between July and September, up from 3.201 billion in Q3 2023.

    And the growth doesn’t stop there. Betting platforms also attracted 102.5 million unique users per month, a solid 12.23% increase year-over-year. However, the most jaw-dropping statistic comes from the comparison to Q2 2024. Visits in the last three months surged by an astonishing 196.69%, marking a new era for Brazil’s digital gambling market.

    The Leaders of Brazil’s Betting Market

    When it comes to the industry’s heavyweights, the competition is fierce. Betano leads the pack with 101.6 million monthly visits and 46.3 million unique visitors, holding 7.66% of the market share. What’s driving this success? Mobile usage. A massive 85.9% of Betano’s traffic comes through mobile devices.

    However, it wasn’t all smooth sailing for Bet7k.com, the previous leader in Q1 and Q2. Despite slipping to second place, Bet7k.com still recorded 88.81 million monthly visits, growing by a healthy 22.18%. Remarkably, 97.9% of its traffic comes from mobile platforms, showing the brand’s strong hold on smartphone users.

    The third spot belongs to BetNacional, which reported 81.04 million visits and 17.76 million unique visitors, while EstrelaBet stole the spotlight with explosive growth. EstrelaBet’s visits surged by 820.32%, reaching 49.49 million, making it one of the fastest-growing platforms in Q3.

    Adding even more intrigue is Superbet, the latest entry to the top 10 rankings. Previously absent, Superbet now sits in seventh place with extraordinary growth of over 5,000%. The platform achieved 13.92 million unique visitors and boasts a 3.62% market share, with 94.4% of traffic coming from mobile.

    The complete Q3 ranking of Brazil’s betting platforms looks like this:

    Rank Platform Monthly Visits (Millions) Unique Visitors (Millions) Mobile Traffic (%)
    1 Betano 101.6 46.3 85.9
    2 Bet7k.com 88.81 N/A 97.9
    3 BetNacional 81.04 17.76 N/A
    4 EstrelaBet 49.49 N/A N/A
    7 Superbet N/A 13.92 94.4

    Mobile Continues to Dominate Brazil’s Betting Scene

    It’s no surprise that mobile devices dominate the online gambling industry in Brazil. Across the board, platforms are reporting mobile traffic percentages of over 85%.

    Why such dominance? Convenience is king. Brazilians are increasingly using their smartphones for quick access to betting platforms, and the data proves it. Superbet’s traffic, for instance, saw 94.4% coming from mobile, while Bet7k.com clocked in at an astounding 97.9%.

    Search Trends: What Are Brazilians Looking For?

    The study also took a closer look at what Brazilians are searching for to land on betting platforms. Leading the list of search terms were:

    • Round results: 43,100 searches
    • Tigrinho: 28,400 searches
    • Loteria Popular: 27,500 searches

    Interestingly, “Tigrinho”—a popular online game—popped up three times in the top 11 searches. This shows just how much certain games and results are influencing traffic and user interest.

    The Bigger Picture

    The research comes from an analysis conducted by Similarweb, which evaluated the online performance of Brazil’s top 100 websites. Betting platforms, with their meteoric growth, are quickly becoming a force to reckon with in Brazil’s digital economy.

    The numbers paint a clear picture: the audience for online betting is not just growing—it’s exploding. With mobile use leading the way and platforms like Betano, Bet7k, and Superbet driving competition, Brazil’s betting sector is positioned for even greater expansion. The future? It’s looking pretty bright for the industry.

  • Peru: CEO of Apuesta Total Criticises New Selective Consumption Tax on Online Gambling

    Peru: CEO of Apuesta Total Criticises New Selective Consumption Tax on Online Gambling

    The CEO of Apuesta Total, Gonzalo Pérez, has voiced strong concerns over Peru’s upcoming Selective Consumption Tax (ISC) on online gambling, calling it a “very complicated situation” for operators. Scheduled to take effect on January 1, 2025, the ISC and other regulations are causing alarm within the gaming industry, particularly regarding the feasibility of implementation and financial sustainability.

    The tax system includes a 12% tax on net gaming revenue (GGR) and an additional 1% ISC on every bet placed. While Pérez noted that the 12% GGR tax is manageable, the ISC introduces significant hurdles that could disrupt operations.

    Technical and Operational Challenges Ahead

    One of the core issues, according to Pérez, lies in how the ISC will be applied in real time. To meet the requirements, platforms will need to calculate and deduct 1% of each bet at the moment the transaction occurs. This seemingly simple adjustment, however, demands deep technical changes to the platforms—an undertaking Pérez said could take at least eight months.

    “The platform needs to deduct ISC alongside the actual bet value. If someone bets PEN 100, the wallet must reflect PEN 101 before accepting the bet. That split—between the bet and the tax—requires substantial modifications,” Pérez explained.

    He stressed that these modifications must pass certification from international laboratories and obtain approval from Peru’s Ministry of Foreign Trade and Tourism (Mincetur). Without these approvals, operating the platform would be non-compliant, putting operators at risk of hefty fines or losing their licenses altogether.

    “It’s an impossible timeline. If we rush to make these changes and operate uncertified platforms, we’ll face severe sanctions. If we don’t, we’ll fail to comply with tax rules. Either way, the State is putting us in a lose-lose scenario,” Pérez added.

    Financial Risks and Potential Confiscatory Effects

    Pérez also highlighted the financial implications of the new taxes. A 1% ISC per bet may seem modest at first glance, but the reality paints a different picture when combined with the 12% tax on net gaming revenue.

    He illustrated the risk with simple figures:

    • If operators take a PEN 100 bet, the 1% ISC immediately deducts PEN 1.
    • That PEN 1 tax equates to 20% of the operator’s Gross Gaming Revenue (GGR), which is typically 5% of the total bet.
    • Adding the existing 12% GGR tax to this equation brings the effective tax burden to 32%.

    For operators, such figures are unsustainable. Pérez cited a Constitutional Court ruling (Sentence 009-2001) that deemed a 20% rate confiscatory, warning that the ISC risks crossing this threshold.

    “This setup could destroy the sector. Taxing at this level is not only unsustainable for legal operators but also counterproductive. It opens the door for illegal gambling to thrive, where there are no taxes and no regulations.”

    A Tipping Point for Legal Operators?

    Pérez’s remarks underline growing frustration among legal online gambling operators in Peru. As the legal industry grapples with compliance challenges, Pérez fears that the ISC will drive players and operators towards unregulated platforms, undermining the State’s objectives of increased tax revenue.

    The ISC’s structure places Peru’s legal gambling sector in a precarious position:

    • Operators must either absorb the tax, slashing already thin margins, or transfer it to players, risking customer dissatisfaction.
    • Illegal gambling, with no taxes or operational restrictions, becomes increasingly attractive to both players and rogue operators.

    “It’s regrettable,” Pérez said, “because instead of strengthening the legal industry, these measures threaten its existence. We’ll lose players to illegal platforms, and the State will end up collecting less than they expected.”

    The State Versus the State

    What frustrates Pérez—and likely other industry leaders—is the lack of coordination between regulators and tax authorities. On one hand, operators must meet strict regulatory requirements, which include certified platforms and transparent compliance. On the other, the tax collection framework demands immediate changes that cannot be realistically implemented within the given timeline.

    “The State is putting us against itself,” Pérez lamented. “There’s no way to comply with both sides of the law by January 1.”

    This regulatory and technical conflict is raising alarms across Peru’s online gambling landscape. Pérez’s concerns serve as a stark warning: if the ISC is enforced as planned, the country risks driving away legitimate operators and losing ground to illegal gambling networks.

    A Risky Path Forward

    As January 2025 approaches, the industry’s options remain limited. Without intervention or an extension, Peru’s online gambling operators face significant financial and operational risks. Pérez’s statements reflect a broader sentiment within the industry—one of frustration, uncertainty, and scepticism over the practicality of these taxes.

    For now, the ball is in the government’s court. Whether they choose to revise the ISC’s implementation or proceed as planned could determine the future of Peru’s legal online gambling sector.