Chile’s long-awaited online gambling legislation is moving forward as the government of President José Antonio Kast has introduced a series of amendments aimed at legalizing private operators through a licensing and tax structure. First brought to the forefront in 2022, the bill had faced numerous delays until recent developments suggested a renewed momentum.
On October 26, a significant number of amendments were presented to the Senate’s Economic Committee. These amendments propose granting five-year licenses to operators, imposing a 19% VAT on the difference between stakes and winnings, and introducing an additional 3% levy. Furthermore, the proposals would prohibit advertising and promotional bonuses, while establishing default limits on player deposits and gaming duration.
Despite this advancement, several critical issues remain unresolved. Notably, there are ongoing debates about how to deal with operators who have been functioning outside of the legal framework, the restrictions on advertising, and the discrepancies in tax obligations between online platforms and regulated brick-and-mortar casinos.
Industry representatives have expressed concerns that the current proposals could disproportionately benefit unregulated operators, thereby jeopardizing the established regulated casino sector in Chile.
The proposed transitional licenses amount to one of the more controversial aspects of the bill, allowing online venues that have been operating without official licenses to apply for these short-term permits. This would enable them to continue their activities while they go through the necessary technical certification and supervisory review.
However, the financial conditions linked to these transitional licenses have sparked disagreement. Suggested fee structures vary significantly, ranging from a high monthly tariff of 73,000 UTM—Chile’s inflation-adjusted tax unit—to a one-off or periodic fee of 3,000 UTM (approximately $219,000). The lower fee option, in particular, has come under fire, with critics arguing that it effectively rewards past illegal activities rather than holding companies accountable for non-compliance.
This breach of competitive fairness is seen as contrary to the bill’s goal of creating a level playing field for all operators involved.
Additionally, the legislation would permit land-based casinos to expand into online betting within their establishments by partnering with licensed operators.
Amid these discussions, a divide has emerged within the Senate. Recently, Senators Diego Ibáñez and Gastón Saavedra introduced a proposal that would ban online gambling altogether. In contrast, Senator Daniel Núñez has suggested an amendment that would limit the market to the two current lottery operators in Chile, introducing penalties for customers who repeatedly place bets on illegal sites within 90 days.
In September, Chilean telecommunications authorities initiated actions against unlicensed operators, leading to a directive for internet providers to block access to 42 gambling websites following court ruling.
The Asociación de Casinos y Juegos (ACCJ), which advocates for Chile’s licensed casino sector, has voiced significant reservations about both the transitional provisions and the broader fiscal frameworks. In an interview, the ACCJ’s executive president, Cecilia Valdés, acknowledged positive regulatory adjustments but maintained that “fundamental asymmetries” still exist. She expressed concern that the transitional licensing could allow illegal online platforms to continue operations without facing repercussions, which undermines fair competition.
Valdés emphasized the need for genuine competition among serious companies, stating, “We want competition, but it has to be real, fair and from serious companies. That’s the most important thing of all.” She further pointed out that licensed land-based casinos confront tax requirements that contribute vital funding to municipalities and local governments, highlighting a disparity in obligations compared to online businesses.
