New Peruvian Gambling Law Creates Single Online Gambling Processor

The Standing Committee of the Parliament of Peru approved a bill sponsored by Congressman Daniel Abugattás that will create a payment processing system for internet casinos and online bingo games in Peru.

The move infuriated a number of prominent opposition politicians since the entire online gambling payment processing network will be created, operated and subsidized with public funds at the cost of 184 million pesos (over 59 million dollars).

Congressman Abugattás successfully arguedin favor of the Peruvian gambling laws. He stated that by retaining full control over the payment processor of online bingo and online casino games in Peru, the government will benefit by knowing the exact earning of every online casino in Peru.

Due to systematic corruption it is very difficult to ensure that the right taxes on casino profits are paid.

Congressman Martin Perez, of the opposition party stated that using public funds to operate a payment processor creates a bad precedent - "When we created the ITF (Tax on Financial Transactions), were the financial companies which undertook to pay for their implementation. This law does the opposite, "he said.

He estimated the cost of implementing the system will be S/.184 million would be covered by money collected by the ministry audit the slot. "This even goes against what it calls the elected government, that is, seek more funding sources and have more revenues to finance social programs," said Perez.

On the other hand, the legislator Javier Bedoya referred the proposal contravenes the Constitution, which states that Congress may not enact measures that affect the public budget. "It is the responsibility of companies to develop this computer system control," he said.

The CEO of Casino Games and Slots, the model was treated and regarded as exemplary throughout his administration.