Chile’s proposed online gambling framework has moved forward, with President José Antonio Kast’s government submitting amendments to the Senate that would introduce licences and a tax regime for private operators. Disagreements over transitional licences, advertising and tax treatment remain unresolved.
The bill was introduced in 2022 and has faced repeated delays. The latest amendments were presented to the Senate Economic Committee on 26 October. They propose five-year licences, a 19% VAT on the margin between stakes and winnings, and a separate 3% levy. The package would also prohibit advertising and promotional bonuses and set default limits on deposits and playing time.
Transitional licences at centre of dispute
The proposal would let online platforms already operating without official licences apply for temporary licences while they complete technical certification and undergo supervisory review. The financial terms are contested: proposals range from a monthly charge of 73,000 UTM, Chile’s inflation-adjusted tax unit, to a one-off or periodic payment of 3,000 UTM, equivalent to about $219,000.
Critics say the lower fee could amount to a pardon for past illegal activity, allowing operators to benefit after avoiding compliance and tax obligations. They argue that this could undermine the bill’s goal of fair competition and disadvantage companies that have operated under licences.
The draft would also allow land-based casinos to provide online betting on their premises through agreements with licensed partners. But the tax burden on online platforms compared with licensed physical casinos remains a point of contention. Casino operators pay specific taxes that contribute directly to municipalities and local governments.
The Asociación de Casinos y Juegos (ACCJ), which represents Chile’s licensed casino industry, has raised concerns about both the transition rules and the wider tax framework. Its executive president, Cecilia Valdés, said that while some regulatory clarifications were welcome, “fundamental asymmetries” remained. “We want competition, but it has to be real, fair and from serious companies,” she said.
Senate proposals offer competing approaches
The amendments come amid debate over whether to regulate online gambling or impose tighter restrictions. Earlier in October, Senators Diego Ibáñez and Gastón Saavedra proposed banning online gambling altogether. Senator Daniel Núñez separately proposed reserving the market for Chile’s two existing lottery operators and penalising customers who knowingly bet repeatedly on illegal sites within a 90-day period.
Authorities have also taken action against unlicensed operators. Last month, telecommunications authorities ordered internet providers to block 42 gambling URLs following court rulings.
