Chile's long-awaited online gambling legislation is finally making headway as the administration of President José Antonio Kast has submitted proposed amendments aimed at legalizing private operators through a licensing and tax framework to the Senate.
First introduced in 2022, the bill has experienced multiple delays, but significant progress was noted when the Executive presented a comprehensive set of amendments to the Senate’s Economic Committee on October 26.
These proposals include a five-year licensing structure, a 19% VAT on the margin between stakes and winnings, and an additional 3% levy on the operators. The amendments would also prohibit advertising and promotional bonuses while establishing default limits for player deposits and playtime.
Despite this advancement, key issues remain unresolved, particularly concerning operators that have been active outside legal regulations, limitations on advertising, and the disproportionate tax burden that online platforms face compared to licensed brick-and-mortar casinos. Industry representatives have expressed concerns that the current proposals may favor unregulated operators, endangering the stability of Chile's traditional regulated casino industry.
One of the most contentious aspects of the bill is the proposed transitional licensing regime for online platforms already operating without official licenses. This allows these operators to apply for temporary licenses to continue operating while undergoing technical certification and oversight. Disputes arise regarding the financial requirements of this transitional status, with suggestions varying from a steep monthly fee of 73,000 UTM (Chile’s tax unit, adjusted for inflation) to a one-off or recurring payment of 3,000 UTM (around $219,000). Industry critics argue that the lower fee structure serves as a “pardon” for previous illegal conduct, rewarding those who evaded compliance and tax responsibilities.
This raises concerns about the bill's intended aim of creating a fair competitive environment and risk distorting the market in favor of operators who circumvented existing regulations. Additionally, the legislation would allow land-based casinos to offer online betting options at their premises by forming partnerships with licensed online operators.
The Senate is divided on the extent of the bill's proposals. Earlier this month, Senators Diego Ibáñez and Gastón Saavedra proposed an alternative measure to ban online gambling altogether, whereas Senator Daniel Núñez introduced his own amendment that would restrict the market to Chile’s two established lottery operators and impose penalties on consumers who repeatedly engage with illegal sites within a 90-day timeframe.
Last month, Chile took action against unlicensed operators, with telecommunications authorities instructing internet providers to block access to 42 gambling URLs following court rulings.
The Asociación de Casinos y Juegos (ACCJ), which represents Chile’s licensed casino industry, has raised significant concerns regarding the transitional measures and overall fiscal arrangements. In an interview with Diario Financiero’s DF al Cierre program, ACCJ Executive President Cecilia Valdés acknowledged some positive regulatory adjustments but expressed that “fundamental asymmetries” continue to persist. Valdés specifically fears the transitional regime will allow online betting platforms to operate without repercussions for their illegal activities before the law is instated.
She asserted the necessity of real, fair competition among serious companies, stating, “That’s the most important thing of all.” Valdés also pointed out the discrepancies in tax obligations for licensed land-based casino operators compared to online enterprises, as the former contribute specific taxes that directly fund local municipalities and governments.
