Dividing the Peruvian Pie: Who Will Take Over the Market After the Regulatory Law?

Gonzalo Perez, the CEO of Peruvian powerhouse Apuesta Total, believes that the new regulated online market in Peru will likely see dominance from just three or four major operators, while other brands will compete for the smaller share of the market.

The Peruvian Gambling Market Act No. 31557 came into force in Peru on February 9, 2024, and the government has taken on the regulation of online gaming and sports betting in the country. Read all about regulation in Peru in our analytical material about the regulated market in Peru and its prospects.

Operators who were active in Peru prior to the announcement of the new law had until March 10 to submit their licence applications. The gambling regulatory body, Mincetur, cautioned that non-compliance could result in penalties of up to €245,394/£212,401/$257,838 or even criminal charges. 

Mincetur is required to review and process these licence applications within 30 working days of their submission. According to Perez, operators must provide final certifications for their platforms and content by November 15, 2024; failing to do so may lead to licence revocation. 

In the initial application window in March, a total of 145 licence requests were received. Additionally, the government has opted to extend the deadline for new entrants into the Peruvian market, although Perez mentioned that specific figures have yet to be disclosed. 

Rush Street Interactive and Betsson, which secured a licence for its pre-regulation brand Betsafe, are among the international companies entering the Peruvian market. Furthermore, Betsson acquired a second licence via its 2021 purchase of local firm Inkabet, while crypto gaming specialist Stake.com has also submitted an application.

Perez anticipates that Peru will become a highly competitive landscape for gambling operators, as both international and local brands compete for valuable market share. He remarked, “I don’t think there’s room for everyone. There won’t be even 50 big operators. It’s going to be similar to other markets: three or four major players, with the rest vying for dominance.” 

He foresees a “battle” for market share in Peru, suggesting that increased competition will enhance the popularity of online gambling. As it stands, Apuesta currently holds a market share of 25-30%.

Competition will expand the market

Tom Ustunel, CEO of Sportingtech, forecasts that Peru will emerge as the third-largest market in Latin America, following a period of double-digit growth in the sector over the past five years. "The swift expansion is undoubtedly beneficial for the market, as operators are likely to invest significantly in marketing," Perez noted. “Historically, when there is considerable advertising and marketing expenditure, the market tends to thrive. Consumers gravitate towards brands that are top-of-mind, and we gain from the investments made by competing brands.”

Trusting relationships with players

Perez attributes Apuesta's success to its comprehensive omnichannel strategy. In July, Cirsa acquired 70% of the company's shares, a move expected to bolster Apuesta's growth in Peru. In addition to its digital betting platform, Apuesta Total is targeting a gross gaming revenue (GGR) exceeding €100 million in 2023, fuelled by its network of physical betting shops. Perez notes that Apuesta's over 500 retail locations across Peru have been instrumental in fostering trust among local customers. “Our retail branches play a significant role in building confidence with clients in Peru, as many have been sceptical of online services for years,” Perez emphasises.

Sponsorship increases brand awareness

The rise in popularity of Apuesta Total can be attributed to its effective sponsorship strategy, which focuses on collaborating with clubs to enhance the football ecosystem in the country. In 2021, Apuesta Total entered into five-year agreements with two of Peru’s premier football teams, Universitario y Alianza Lima. This long-term approach shields the company from the soaring sponsorship costs prevalent in Peru and neighbouring Brazil. Perez emphasises the importance of supporting clubs' initiatives to foster strong connections with teams and bettors. “We are observing and anticipating a rise in sponsorship prices. However, we are committed to maintaining our strong relationships, and I believe the clubs view us as genuine partners,” he stated.

Stay in the lead

Apuesta is now faced with the challenge of putting forth significant effort to uphold its leading position in the highly competitive Peruvian market, especially with the entry of international giants possessing considerable financial and marketing resources in 2024. “We have to stay at the top. This is essential for us, but it’s a challenging endeavour today,” stated Perez.