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NEXT.io has partnered up with ENV Media to publish an all-encompassing content series focused on emerging markets in Latam.

After taking a closer look at Brazil in February, the March edition focuses on Peru.

Peru faces a pivotal moment in its legal gambling history as applications for licensed operations keep coming in before the 13 March deadline.

This is a strategic opportunity for domestic and global gaming companies vying for a market estimated at around $2.5bn.

The latest ENV Media study paints the picture of a market headed for maturity.

A legacy of legal gambling

Peru’s experience with legal gambling spans over four decades, with gradual improvements in regulation, market understanding and trust between stakeholders.

This has cultivated a gambling culture that appreciates the value of regulated play, setting the stage for the seamless integration of online platforms.

When Congress approved the new legal framework back in 2022, practically all gambling verticals were included. A year later, operational guidelines were written out.

The transition to digital gambling has largely been met with enthusiasm by Peruvians.

Now, it is supported by a regulatory framework that adapts to the evolving nature of the industry and maintains the integrity of gambling practices.

Navigating a $2.5bn market

The Peruvian gambling market’s total turnover is estimated at around $2.5bn, reflecting the sector’s significant economic impact and potential for further growth.

This figure includes both traditional and online gambling platforms, with the former still having a slight edge in domestic market share.

For iGaming companies, this is a substantial opportunity to tap into a well-established market with proven demand for innovation.

The challenge lies in navigating the fresh regulatory requirements and learning the local market dynamics to capture a share of the player pool.

Market penetration and expected ARPU

Updated 2024 estimates of annual ARPU (average revenue per user) cite $502.20 for Peruvian online gamblers, stressing the market’s current and prospective profitability.

This figure brings out the engagement and spending power of the gamers.

Furthermore, with around 5 million players out of approximately 24 million adults in Peru, the market penetration stands slightly above 20%.

This penetration rate indicates a substantial and enthusiastic audience, offering particular room for growth via online channels.

The key month for iGaming companies

As revealed earlier, this month is crucial for iGaming companies applying for licences in Peru. The 13 March deadline is the first announced cut-off for firms to align with Peru’s regulatory standards and secure their place in the market.

The process is not just about gaining legal entry but also about demonstrating a commitment to responsible gambling, consumer protection, financial and technical standards.

A successful application would show a deep understanding of the Peruvian gambling scene, a strategic plan for a market entry, and a readiness to meet the needs of a discerning consumer base.

Seizing the opportunity

Without a doubt, the potential of the real-money gaming market in Peru is immense, given the history, stable demand and authorities’ willingness to open up to global competition.

Dozens of iGaming companies are expected to navigate this transition successfully, aligning with regulatory requirements and gradually learning the ropes.

Time will tell just how well Peru will manage to channel its consumers to licensed gaming outlets, but the latest attempts to legitimise the industry speak well of its intentions, to say the least.

ENV Media, founded in 2018, excels in digital marketing and data-driven research for the iGaming industry. It focuses on market visibility for key partnerships in Latin America and other emerging markets.

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