Key Takeaways

  • Chile’s government has proposed five-year licences with an annual fee of 1,000 UTM.
  • The proposed tax combines 19% VAT with an additional 3% levy on betting margins.
  • Advertising and promotional bonuses would be prohibited, subject to limited transitional arrangements.
  • Competing Senate proposals could prevent private operators from entering the regulated market.

Chile’s government has submitted a new set of amendments to its long-delayed online gambling bill, proposing a licensing system, a combined 22% tax on betting margins and a broad ban on advertising. The changes were presented to the Senate’s Economic Committee on October 26, with lawmakers beginning their examination the following day. The legislation was first introduced in 2022 and has faced several delays as lawmakers debated how private betting platforms should operate in the country. The latest proposal includes new requirements for operators, restrictions on promotional offers and additional player protection measures.

Chile’s Proposed Gambling Rules Face Disputes Over Taxes And Licences

The government’s amendments would allow private online gambling companies to apply for operating licences lasting five years. Each licence would carry an annual fee of 1,000 UTM. Operators would also pay 19% VAT on the monthly difference between bets placed and prizes paid, alongside an additional 3% tax on the same amount. This would bring the proposed combined rate to 22%. The details were included in a 114-page package submitted by the government. Diario Financiero’s report on the amendments outlines the proposed tax structure, licensing conditions and changes to the existing bill. 

Companies that have operated in Chile without a licence could apply through a transitional route. Under the government’s proposal, eligible operators would need to pay a 3,000 UTM enabling fee and bring their digital VAT obligations up to date for the previous 36 months. Operators that do not qualify for this arrangement could face restrictions on applying for a permanent licence if they offered services without authorisation during the preceding 12 months.

Critics argue that allowing some existing platforms to enter the regulated market could give them an advantage over companies that have followed the rules of the land-based casino sector. The Asociación de Casinos y Juegos has also raised concerns about differences in tax obligations between online platforms and physical casinos. The government is not the only group proposing changes. Senators Diego Ibáñez and Gastón Saavedra have put forward an alternative that would prohibit private online gambling platforms. Another proposal would reserve online betting for Chile’s existing lottery operators, Polla Chilena de Beneficencia and Lotería de Concepción.

Advertising Restrictions And Player Protection Measures Feature In New Proposal

Advertising is one of the most disputed parts of the government’s amendments. The proposal would prohibit advertising for online betting platforms, whether they hold an operating licence or not. It would also prevent operators from offering bonuses and promotional benefits intended to attract or retain customers, even when those offers are not publicly advertised.

The proposal includes a limited transition for certain existing advertising contracts. Diario Financiero reported on aPAL’s objections, with the industry association arguing that a complete advertising ban could make it harder for licensed platforms to compete with unauthorised operators. aPAL has welcomed some parts of the proposal, particularly the focus on responsible gambling and the planned fund for addiction prevention and treatment. However, it argues that customers need to be able to identify regulated platforms. Without advertising or promotional offers, the association believes licensed operators could struggle to distinguish themselves from unlicensed competitors.

The amendments also include several player protection measures. New accounts would have default deposit limits and restrictions on playing time. Platforms could be required to introduce stronger identity checks, potentially including biometric verification. The proposal would also exclude people who have voluntarily self-excluded, individuals in prison and people listed in Chile’s national register of child-support debtors.

Other proposed restrictions would prevent athletes, members of coaching teams and certain sports organisation officials from betting on the disciplines with which they are associated. The government has also proposed creating a fund for gambling addiction prevention and treatment. These measures follow earlier discussions among lawmakers about consumer protection, taxation and enforcement. In September Chilean Senate outlined calls for greater transparency and stricter online betting controls. The Senate Economic Committee is now examining the competing proposals. None of the government’s amendments has become law, and the final framework will depend on the legislative process. Whether Chile establishes a regulated private online gambling market or adopts a more restrictive approach remains unresolved.

Also read: Chile Moves to Block Payments to Unlicensed Online Casinos