Rush Street Interactive (RSI) has announced its expansion into Peru, entering a newly regulated market with a population of over 30 million people.
RSI is already live in Colombia and Mexico, and this expansion further expands the company’s presence in Latin America.
As the business expands, RSI claims to be the first fully licensed operator under Peru’s new regulatory framework.
Rush Street Interactive CEO Richard Schwartz believes RushBet’s launch in Peru will be critical to the company’s growth in the exciting but competitive Latin American region.
“This move allows us to leverage our proven operating expertise in Latin America, specifically the brand equity and operating efficiencies we have built in the region over the past six years,” Schwartz said.
“Peru’s vibrant sports culture and growing digital economy provide RushBet with an exciting long-term opportunity to deliver a best-in-class product to a new and passionate audience.”
Prior to RSI's launch in Peru, the company already had operations in Colombia and Mexico.
In June 2018, Rush Street launched a regulated online sportsbook in Colombia, becoming the first U.S. company to launch a regulated online sportsbook in South America.
In July 2022, Rush Street Interactive launched RushBet in Mexico under a 25-year agreement. This is thanks to a partnership with Mexican media group Grupo Multimedios.
RSI has also been successful in Latin America. Announcing the company's first-quarter 2024 results, Schwartz noted that the company's Latin America operations grew revenue 84.0% year over year and that there was room for "continued growth" through further investments.
Schwartz believes the new Peruvian expansion will be a “key component” in the company’s push into Latin America, drawing on its previous experience in the region.
Schwartz added: “We are excited to bring this expertise to Peru, where we see great growth potential in both the online casino and sports betting sectors.”
Peru took a big step forward in October 2023 when the Ministry of Foreign Trade and Tourism (Mincetur) approved gambling regulations.
The approval came after Peru’s then-President Pedro Castillo signed Law 31557, which was set to take effect in 2022. However, disputes over taxes and expensive retail licenses have caused delays.
But Mincetur's approval means Peru now has a regulated market, following the approval of a revised law in May 2023.
Among the amendments is the replacement of the retail licence requirement with a single online licence, which triples its cost to 2.97 million soles (£638,628/€744,466/$807,641) or 3% of net revenue, whichever is higher, while also introducing a 12% excise tax.
After Law No. 31557 came into effect in February, Mincetur received 145 applications for operator licenses in the first 30 days.
In June, Betsson received a license to operate its Betsson and Betsafe brands in Peru. Shortly thereafter, Betsson subsidiary Inkabet secured a local license in Peru after expanding its deal, powered by the GiG platform.
