The Chilean government appears to be making headway with its long-anticipated online gambling bill. The bill, which seeks to legalize private operators under a new licensing and tax structure, has advanced to the Senate following amendments proposed by President José Antonio Kast's administration.
Originally introduced in 2022, the legislation faced multiple delays. However, on October 26, the Executive submitted a substantial number of amendments to the Senate’s Economic Committee, indicating a renewed push for its passage.
The amended bill includes provisions for five-year licenses, a 19% VAT on the difference between stakes and winnings, and an additional 3% levy. It also proposes a ban on advertising and promotional bonuses, along with imposing default limits on player deposits and gaming time.
Despite this progress, several critical issues remain unresolved. Disagreements persist concerning the treatment of operators currently functioning outside the legal framework, restrictions on advertising, and tax burdens that disproportionately affect online platforms compared to established brick-and-mortar casinos.
Industry stakeholders have expressed concerns that the proposed measures may unintentionally favor unregulated operators, jeopardizing the sustainability of Chile’s traditional casino sector.
Among the most controversial aspects of the bill is the transitional licensing regime for existing online platforms operating without official licenses. This draft provision allows these operators to apply for temporary licenses, enabling them to continue operations while undergoing necessary certifications and oversight.
The contention arises from the financial prerequisites linked to this transitional status, with suggestions for fees varying significantly. Proposals range from a substantial monthly tariff of 73,000 UTM (Chile’s inflation-adjusted tax unit) to a one-time or periodic payment of 3,000 UTM (approximately $219,000). The lower fee option has faced backlash from the industry, seen as a potential “pardon” for past illegal operations, rewarding those who neglected compliance and tax obligations.
Critics claim this undermines the bill’s goal of a fair marketplace and risks skewing competition in favor of non-compliant entities at the expense of fully licensed operators. Additionally, the bill allows land-based casinos to offer online betting through partnerships with licensed online platforms.
The Senate is divided over the extent of regulation needed. Earlier this month, Senators Diego Ibáñez and Gastón Saavedra proposed an alternative that would ban online gambling outright. In contrast, Senator Daniel Núñez introduced a separate amendment that would limit the market to Chile’s existing lottery operators and impose penalties on customers who repeatedly bet on illegal sites within a 90-day timeframe.
Last month, Chile's authorities took action against unlicensed operators, as telecommunications regulators ordered internet service providers to block 42 gambling URLs following court rulings.
The Associação de Casinos y Juegos (ACCJ), representing the nation's licensed casino industry, has been vocally critical of both the transitional measures and the overall fiscal framework. In an interview with Diario Financiero’s DF al Cierre program, ACCJ executive president Cecilia Valdés acknowledged some regulatory improvements but emphasized that significant disparities remain.
Valdés expressed concern that the proposed transitional framework would allow online betting platforms to operate without repercussions for past illegal activity prior to the legislation’s enactment. "We want competition, but it has to be real, fair, and from serious companies," she stated, highlighting the importance of equitable regulation.
Additionally, Valdés pointed out the uneven tax responsibilities between licensed land-based casino operators and online platforms, indicating that the former contribute specific taxes that finance local governments and municipalities.
