Chile’s online gambling bill advances amid tax and licensing disputes
Chile’s long-awaited online gambling bill appears to be progressing after President José Antonio Kast’s government sent amendments that would legalise private operators under a licensing and tax regime to the Senate.
The bill was first introduced back in 2022, but has suffered a series of delays.
The wheels now seem to be in motion though, with a significant number of amendments presented by the Executive to the Senate’s Economic Committee on 26 October.
The package would grant five-year licences, impose a 19% VAT on the margin between stakes and winnings and add a separate 3% levy.
It would also ban advertising and promotional bonuses while setting default limits on deposits and playing time for players.
However, key disputes remain unresolved, particularly regarding the treatment of operators who have been active outside the formal legal framework, advertising limits and the unequal tax burdens faced by online platforms versus licensed brick-and-mortar casinos.
Industry voices have warned that current proposals risk favouring unregulated operators, potentially threatening the viability of Chile’s traditional regulated casino sector.
Controversial transitional licences
One of the bill’s most contentious elements concerns the transitional regime for online platforms already operating without official licences. The draft allows these operators to apply for so-called transitory licences, permitting continued operation while they undergo technical certification and supervisory review.
However, disagreement centres on the financial conditions attached to this transitional status. Various proposals suggest a wide range of fee structures, from a hefty 73,000 UTM monthly tariff (Chile’s tax unit subject to inflation adjustments) to a one-off or periodic payment of 3,000 UTM (roughly $219,000).
This lower fee level, in particular, has drawn sharp industry criticism as a possible “pardon” for prior illegal activity, effectively rewarding companies that avoided compliance and fiscal obligations.
Critics argue that this undermines the intent of the bill to create a level playing field and risks distorting competition to the detriment of fully licensed market participants.
The plan would allow land-based casinos to offer online betting on their premises through agreements with licensed partners.
Senate split over how far to go
Earlier this month, Senators Diego Ibáñez and Gastón Saavedra put forward an alternative that would ban online gambling altogether.
Meanwhile, a separate amendment from Senator Daniel Núñez would reserve the market for Chile’s two existing lottery operators and penalise customers who knowingly bet on illegal sites repeatedly within a 90-day period.
Chile had already moved against unlicensed operators last month, when telecommunications authorities ordered internet providers to block 42 gambling URLs after court rulings.
Casino trade body raises concerns
The Asociación de Casinos y Juegos (ACCJ), representing Chile’s licensed casino industry, has emerged as one of the most vocal critics of the transitional measures and broader fiscal arrangements.
In an interview with Diario Financiero’s DF al Cierre programme, the ACCJ’s executive president, Cecilia Valdés, acknowledged some positive regulatory clarifications but cautioned that “fundamental asymmetries” persist.
Particularly, Valdés is concerned that the proposed transitional regime will allow online betting platforms to operate without facing consequences for having been active illegally prior to the legislation coming into effect.
“We want competition, but it has to be real, fair and from serious companies,” she said. “That’s the most important thing of all.”
Additionally, Valdés highlighted the differing tax obligations that licensed land-based casino operators and online businesses will face, with the former paying specific taxes that directly contribute to the financing of municipalities and local governments.