October 14, 2024
WA.Technology receives accreditation to enter Peru’s gaming market
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July 15, 2024
In a new article of this series, we will explore the necessary steps to open an online casino in Peru.
In 2023, iGaming market revenues in Peru were estimated at approximately US$277 million. The market is projected to have a compound annual growth rate (CAGR) of 8.68% through 2027, reaching a market volume of $386.4 million.
Source: Yogonet
With a population of approximately 33.5 million, Peru is a multiethnic and multicultural country. In addition to Spanish, the primary language in Peru, it is estimated that more than 40 native languages are spoken in the country, with Quechua and Aymara being the most widely spoken. This linguistic diversity is reflected in the various customs, traditions, and cultural expressions found in each region of the country. That being said, the role of entertainment in the country is an integral part of this mix.
Most of the population is concentrated in urban areas, with Lima, the capital, housing almost one-third of the country's inhabitants. The adult age structure is relatively young, with an average age of 31. This young adult demographic presents a significant opportunity for dynamic and expanding markets, such as online gaming and sports betting.
Peru has experienced remarkable economic growth in the last decades, although it faces challenges such as inequality and labour informality. In a recent interview for Digital Gaming News, the General Director of Casino Games and Slot Machines of Peru, Eng. Yuri Guerra, highlighted "the positive impact of the gaming industry in the Peruvian economy. With more than 200,000 jobs generated in the face-to-face and virtual sectors, Guerra underlined that the gaming sector is one of the most formal in the country. He explained that there are more than 120,000 direct and indirect jobs in the online sector and between 60,000 and 70,000 in the face-to-face sector."
Source: Digital Gaming News
The verticals most chosen by Peruvians are sports betting, slots, live casino games, and lottery. According to Latam Entertainment, Lima, Trujillo, Ica, Arequipa, and Moquegua are the cities with the highest gaming rates in Peru.
Peruvians show a growing interest in sports betting, especially in popular sports such as soccer. Liga 1, Peru's professional soccer league, and European leagues generate a significant volume of bets. In addition, international sporting events such as the Copa America and the World Cup also capture the attention of Peruvian bettors.
According to the TGM Sports Betting Survey, in 2022, 58.78% of the population participated in sports betting through the Internet or mobile applications, with 71.79% of interaction through this medium.
Source: Exitosa Noticias
Slots are the favourite gaming option. Their popularity is due to the simplicity of the game and the wide variety of themes and styles available. Players tend to choose slots that have high RTP (return to player) percentages and different levels of volatility.
Live casinos are rapidly gaining popularity, allowing players to enjoy an authentic casino experience from anywhere. The most popular games are live roulette, live blackjack, and live baccarat, broadcast from professional studios and offering users a unique and immersive experience.
Source: Online-Casinos
According to TGM’s Sports Betting Survey, 31% of Peruvians bet on lotteries and games such as bingo and keno, an important figure for developing this vertical in the country.
Source: Exitosa Noticias
Peru's regulation oversees the General Directorate of Casino Games and Slot Machines (DGJCMT), created in 2006 under the Vice Ministry of Tourism of MINCETUR. This organism's most significant challenge at a national level is to authorise, control, and supervise 100% of the online gaming and sports betting activity.
Law N° 31557, in force since 02/13/2024, regulates the activity of remote gaming and remote sports betting. Among its regulations, it was ruled that all companies, whether national or foreign, must adapt to the new regulation and comply with the payment of the special gaming tax, which is 12% of the net profit. It should be clarified that, before this law, there was no regulation in force or sectorial authority to authorise the exploitation of operations. In addition, those who wish to operate in the country must obtain a licence granted by MINCETUR.
The General Directorate of Casino Games and Slot Machines' functions include operational control of gaming activity, fighting against illegality, searching for safe and responsible gaming, and creating initiatives to develop the industry. To this end, it is based on a series of articulated actions to stabilise the sector.
Source: Latin American Game Fair
According to a research study on the behaviour of Peruvian players conducted by the consulting firm Apuesta Legal (2023), taking a sample of 300 players, ‘7 out of 10 bettors revealed that they prefer brands with security systems to make payments. Likewise, among the main factors that players evaluate when choosing a brand are payment methods (56%), security protocols (41%) and information transparency (40%).’
Source: El Comercio
Within the payment options, the most used and favoured by Peruvians are:
It is estimated that around 52% of online transactions in Peru are made with cards (PPRO).
Bank transfers account for approximately 17% of online transactions (PPRO). This includes both direct transfers and payments through digital banking platforms.
Electronic wallets such as Yape and Plin have grown significantly, reaching around 11% of online transactions (PPRO). These allow users to make online payments without a card, facilitating easy transactions. Concerning Yape, by 2024, it already has more than 14 million users with an incidence of use that is growing steadily, so it is essential to consider this means of payment within the payment methods.
Source: Latam Fintech
A considerable proportion of the population still chooses to pay in cash. Platforms such as PagoEfectivo allow the generation of payment codes that players can use to pay in cash at various physical points, providing confidence and accessibility in the Peruvian market.
Sources: PagSeguro, PPRO, Instituto Peruano de Economía.
It is advisable to have a provider that is registered as such and regulated by MINCETUR. In addition, it is necessary to have the peace of mind that the site is safe and scalable to have a close brand with proven experience. Remember that the site you develop must be first-class since it is the most important face of the brand. It is difficult to provide a good experience to customers if the platform presents errors, is delayed or is complicated to use because it does not connect with day-to-day and Peruvian idiosyncrasy, so the cultural factor plays an important role in this field of creation.
In addition to aesthetics, speed, and security, which Peruvians value, investing in a varied range of casino gaming options is crucial. This will increase consumer acceptance of the platform.
The selection of a qualified team in a niche as specific as iGaming will make the company stand out from the competition. We suggest hiring people who have worked in the sector, have experience in the field, and know the Peruvian reality. This will make a winning combination.
Initially, the marketing team must create two plans: marketing and communications.
From that starting point, the marketing initiatives or actions the team will develop must be related to a deep understanding of the customer and the market. Results will be achieved based on the 360° strategies produced to connect, thrill, and make the audiences fall in love, materialising creative and innovative ideas that will increase the value of each service and the brand.
Social media strategy is part of a company's communication plan. It is considered a key tool for expanding the business, making it known, generating community, and attracting potential customers.
In Peru, according to data from the National Institute of Statistics and Informatics (INEI), as of March 2024, 72.5% of the population has internet access, representing 22.2 million people. The most active and popular Social Networks are Facebook, Instagram, TikTok, and YouTube, followed in a lesser fashion by X (Twitter) and LinkedIn. According to Latam Entertainment's operations studies, the average time users spend on different platforms is 6.5 hours.
Source: National Institute of Statistics and Informatics
Responsible gaming is a set of measures and practices to prevent problem gambling and promote a safe and positive gaming experience for all users. It involves encouraging gambling as an entertainment activity, not to win money, and providing tools for players to control their behaviour, which can enhance a casino's reputation.
Here are some strategies to promote responsible gaming in operations:
Deposit and wagering limits can help control player spending and avoid financial problems.
Self-exclusion allows players to take a break from gambling if they feel they are losing control. This tool is essential to maintain a healthy gambling environment.
Education and awareness providing clear information about the risks of gambling and offering educational resources can help gamblers make conscious decisions.
It is essential to have a customer service team trained to handle problem gambling situations and to be able to refer players to professional counselling services.
Disclaimer:
Latam Entertainment has provided this article for informational purposes, but it does not necessarily reflect WA.Technology's views.
Investments in any market, including Latam, should be made after thoroughly analysing and understanding local regulatory and market conditions.
W.A Technology Group Limited
Registered address:
19-21 Circular Road, Douglas IM1 1AF, ISLE OF MAN.
Email address: hello@watechnology.com
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