Law no 31557 came into effect in Peru on 9 February of this year as the government sought to regulate online gaming and sports betting in the country.
Operators active in Peru before the announcement had until 10 March to submit a licence application. Gambling regulator Mincetur warned those who did not comply could face a fine of up to Sol990,000 (€245,394/£212,401/$257,838) or criminal prosecution.
According to the law, Mincetur will process licence applications within 30 business days of submission. Perez said operators have a 15 November deadline to submit final certifications for their platform and content. Failing to meet that deadline could result in authorisation being revoked.
During that initial window in March, 145 licence requests were submitted. Meanwhile new entrants to Peru were given a longer period to apply, although Perez believes the deadline for this has not been clarified.
Rush Street Interactive is one international operator to have entered the market, while Betsson has also been granted a licence for its Betsafe brand which was present in the market prior to regulation. it secured a second licence through its acquisition of the locally-based Inkabet in 2021. Crypto gaming specialist Stake.com has also submitted an application.
Perez expects Peru to become a highly competitive market with international and local brands fighting for single-digit market share.
“I don’t think there’s going to be room for everyone,” Perez tells iGB. “We’re not going to have 50 big operators.
“The market and it’s going to be like any other country with three or four bigger operators and the rest are going to be struggling to get to the top.”
Perez expects a “battle” over market share in Peru, noting the competition will increase online gambling’s popularity. He says Apuesta currently has a 25-30% market share.
Competition will strengthen the market
Sportingtech CEO Tom Ustunel previously told iGB he anticipates Peru will become the third biggest market in LatAm. The sector has experienced a double-digit growth rate over last five years.
“It’s going to be good for the market because they will of course spend a lot of money on marketing,” Perez continues. “I think we saw in the past that when someone does that, the market grows.
“People use what they have on their mind, the brand that they have on their mind, and so we take advantage of that investment that the other brands are doing.”
Omnichannel key for establishing trust with players
Perez is confident in Apuesta’s omnichannel offering powering its success. In July, 70% of the company was acquired by Cirsa in a deal that will strongly support Apuesta’s growth targets in Peru.
Alongside its digital betting, Apuesta Total was powered to a gross gaming revenue (GGR) exceeding €100m in 2023 by its physical betting locations,
Perez feels Apuesta’s over 500 retail betting locations across Peru has helped establish trust with locals.
“Having this retail branch helps us a lot to give confidence to the customers in Peru because I think that for many years they didn’t trust online services,” Perez explains.
Sponsorships driving brand awareness
Apuesta Total’s popularity has also benefitted from its sponsorship strategy, which involves working alongside clubs to boost the country’s football ecosystem.
In 2021, Apuesta Total signed five-year deals with Universitario and Alianza Lima, two of the biggest football clubs in Peru.
The long-term nature of the deal protects the operator from inflated sponsorship prices observed in Peru and its neighbour Brazil.
For Perez, it’s imperative the operator supports clubs initiatives to build connections with teams and bettors.
“We have seen and we expect some inflation [of sponsorships], but of course, we have also been very good at maintaining our relationships. I think they feel that they have a partner with us.”
Remaining at the top the challenge for Apuesta Total
Apuesta’s efforts to maintain its position among growing competition in Peru will be challenging n the face of growing competition from international giants with sufficient financial and marketing firepower.
“We need to keep being the number one. For us we have it very clear, but it’s a very big challenge,” he concludes.
Original article: https://igamingbusiness.com/legal-compliance/regulation/apuesta-total-peru-betting/
