The Chilean online gambling bill is making headway as President José Antonio Kast’s administration has submitted amendments aimed at legalizing private operators through a licensing and tax structure to the Senate. Originally proposed in 2022, the bill encountered numerous delays but is now moving forward.
On October 26, the Executive presented a substantial number of amendments to the Senate's Economic Committee. The new proposal includes granting five-year licenses and imposing a 19% VAT on the difference between stakes and winnings, in addition to a separate 3% levy. Advertising and promotional bonuses would be prohibited, and there would be imposed default limits on player deposits and gaming time.
Yet, significant disputes remain, especially regarding the handling of operators who have been active outside legal parameters, advertising restrictions, and the disparity in tax burdens between online platforms and licensed brick-and-mortar casinos. Industry experts are cautioning that the current proposals might favor unregulated operators, which could jeopardize the existing regulated casino sector in Chile.
A particularly contentious aspect of the bill involves the proposal for transitional licenses that would allow online platforms operating without official licenses to continue their operations while undergoing technical certification and supervision. Disagreement has arisen about the financial conditions of these transitional licenses, with suggestions ranging from a hefty monthly fee of 73,000 UTM to a one-time payment of approximately 3,000 UTM (around $219,000). Critics of the lower fee argue it essentially rewards companies that had previously avoided compliance and financial responsibilities, compromising the bill's aim of establishing fair competition.
The legislation would also enable land-based casinos to offer online betting through agreements with licensed partners, further complicating the regulatory landscape.
In the Senate, a divide has emerged regarding the extent of the bill’s reforms. Senators Diego Ibáñez and Gastón Saavedra have proposed an alternative measure that would completely ban online gambling. In contrast, Senator Daniel Núñez has suggested amendments to limit the market exclusively to Chile’s existing lottery operators while imposing penalties on customers who knowingly engage with illegal sites multiple times within 90 days.
Just last month, Chile took action against unlicensed operators, prompting telecommunications authorities to instruct internet providers to block 42 gambling websites following court rulings.
The Asociación de Casinos y Juegos (ACCJ), which represents licensed casinos in Chile, has become a vocal opponent of the transitional measures and the broader fiscal framework. Cecilia Valdés, ACCJ's executive president, expressed some approval for regulatory clarifications but noted persistent "fundamental asymmetries." Valdés is particularly worried that the transitional regime allows online platforms to operate without repercussions for their past illegal activities prior to the legislation's passage. "We want competition, but it has to be real, fair and from serious companies," she emphasized, underlining the differences in tax obligations that licensed land-based casinos and online businesses encounter, as the former face specific taxes that directly support municipal finance.
