Chile's online gambling legislation is making strides as President José Antonio Kast's administration has proposed amendments aimed at legalizing private operators through a structured licensing and tax system, which is now before the Senate.
Initially introduced in 2022, the bill faced multiple delays, but recent developments signal renewed momentum, particularly after the Executive presented a series of amendments to the Senate’s Economic Committee on October 26.
The proposed framework would provide five-year licenses, impose a 19% value-added tax on the profits companies make from betting, and introduce an additional 3% levy. Notably, it would also prohibit advertising and promotional bonuses while establishing limits on players' deposits and playtime.
However, significant disagreements persist, especially regarding the status of operators who previously operated outside legal confines, restrictions on advertising, and the perceived unequal tax burdens between online and traditional brick-and-mortar casinos. Industry leaders caution that the current framework could unintentionally favor unregulated operators, jeopardizing the stability of Chile's established casino industry.
A particularly contentious aspect of the bill involves provisional licenses for existing online operators without official authorizations. The draft legislation aims to allow these entities to apply for temporary licenses, enabling them to continue operations during the certification and regulatory review process.
Debate remains fierce over the financial criteria for these transitional licenses; proposed fee structures range widely, from an imposing monthly fee of 73,000 UTM to a one-time or periodic fee of 3,000 UTM, approximately equivalent to $219,000. Critics claim that a lower fee might effectively reward operators who had previously neglected compliance with legal and fiscal responsibilities, thereby undermining the bill's goal of establishing fair competition.
Additionally, land-based casinos would be permitted to offer online betting through collaborations with licensed partners under this plan.
Disagreement within the Senate is evident, with Senators Diego Ibáñez and Gastón Saavedra proposing an amendment that would ban online gambling outright. In contrast, Senator Daniel Núñez has suggested amendments that would limit online market access to the country's two current lottery operators and enforce penalties on customers who repeatedly wager on illegal sites within a 90-day window.
In a previous crackdown, Chilean telecommunications authorities ordered ISPs to block 42 gambling-related websites after judiciary rulings last month.
The Asociación de Casinos y Juegos (ACCJ), which represents Chile's licensed casino sector, is among the most vocal voices raising concerns about the proposed fiscal measures and transitional license framework. ACCJ executive president Cecilia Valdés expressed cautious optimism about some regulatory clarifications but pointed out ongoing "fundamental asymmetries."
Valdés specifically highlighted worries that the transitional measures could permit online operators to escape accountability for their earlier illegal activities. "We want competition, but it has to be real, fair, and from serious companies," she emphasized, stressing the need for equitable tax responsibilities for both licensed brick-and-mortar and online casinos, with the former contributing directly to local government financing.
