Online gambling legislation progresses in Chilean Senate

Chile Passes Landmark Online Betting Regulation Bill

Chile has taken a significant step towards regulating its online betting sector with the passage of a comprehensive bill that aims to formalize and control the rapidly growing industry. The bill, which passed the Chilean Senate with 27 votes in favour, 3 against, and 5 abstentions, is now set for a detailed review by the Senate Economic and Finance Committees by late September 2025 [2][3][4].

The bill, a pragmatic response to the ubiquity of unregulated online betting in Chile, targets a sector that currently operates outside the law, avoiding taxes and oversight. It seeks to protect users, especially minors, ensure transparency in platform management, safeguard public trust, control excesses, combat illegal gambling, and create a competitive market aligned with other legal gambling forms like lotteries and horse racing. It also supports public funding through taxation and contributes to sports development [1][2][4][5].

A formal licensing system will be established for all online betting operators, both local and foreign. Licensed platforms must verify player identities using biometric ID checks, block minors, and implement responsible gambling tools. The bill enforces prohibitions on bets from individuals who can influence sports results and includes restrictions on advertising and anti-money laundering measures. Criminal sanctions will apply to unauthorized operations. Enforcement tools include blocking access to unlicensed websites and apps and restricting payment transactions to illegal operators [1][2][3][5].

Licensed operators will be subject to a value-added tax (VAT) of 19% plus additional taxes, summing up to a total tax burden of under 28% or specifically a 20% tax plus a 1% levy dedicated to responsible gambling initiatives. Additionally, there will be an annual 2% levy on gross sports betting revenue directed to the National Sports Institute to support sports development [1][2][4][5].

If passed, the bill would mark a significant shift in the country's gambling paradigm, bringing digital wagering into a regulated framework. The legislation aligns with national efforts against organized crime and aims to reduce the $3.1 billion untaxed revenue generated by illicit platforms in 2024. It also restricts participation by individuals with direct or indirect influence over betting outcomes [2][3][4][5].

The bill introduces advertising limits and a National Policy on Responsible Betting. It also offers amnesty to current platforms that seek licenses after having operated illegally, in an effort to incentivize compliance from the outset. The proposal reflects a pragmatic response to the ubiquity of unregulated online betting in Chile, and it aims to help prevent financial crimes [1][2][3][4][5].

Over five million Chileans engaged with these platforms in 2024, generating more than $3.1bn in untaxed revenue. The bill targets payment processors to prevent transactions with illegal gambling operators. The online gaming industry in Latin America continues to expand, and Chile's move to regulate online betting is expected to set a precedent for other countries in the region [1][3].

Finance Minister Mario Marcel stated that the legislation addresses a rapidly growing sector currently operating outside the law. The bill emphasizes the role of the legislation in combating risks such as money laundering. Subsecretary Heidi Berner reiterated these sentiments, highlighting the bill's importance in creating a safe and fair online betting environment [1][2].

In summary, the bill seeks to formalize and regulate the online betting sector in Chile, protecting users, especially minors, ensuring transparency, safeguarding public trust, controlling excesses, combating illegal gambling, creating a competitive market, and contributing to sports development through taxation. The bill also aims to reduce the $3.1 billion untaxed revenue generated by illicit platforms and aligns with national efforts against organized crime. The bill is now set for a detailed review by the Senate Economic and Finance Committees.

References:

El Mercurio
La Tercera
El Mostrador
El Mercurio
La Tercera
This landmark regulation bill, passed in Chile, aims to formalize the iGaming, sportsbook, and lottery industries, controlling their rapid growth.
The bill enforces compliance with identity verification, responsible gambling tools, and prohibitions on betting by individuals who can influence sports results.
The online casino business in Chile will face a 20% tax plus a 1% levy for responsible gambling initiatives, with an additional 2% levy on gross sports betting revenue for sports development.
The bill seeks to protect users, especially minors, safeguard public trust, and combat illegal gambling in the casino-and-gambling, casino-games, and gambling-trends sectors.
The bill introduces casino-culture regulations, including advertising limits and a National Policy on Responsible Betting, offering amnesty to platforms seeking licenses after operating illegally.
The legislation aligns with national efforts against organized crime and aims to reduce the $3.1 billion untaxed revenue generated by illicit platforms in 2024.
The bill restricts casino-personalities with direct or indirect influence over betting outcomes from participating in the online betting sector.
The online gaming industry in Latin America is expected to follow Chile's lead in regulating online betting, setting a precedent for other countries in the region.
As the bill moves through the Senate Economic and Finance Committees, it aims to ensure transparency in platform management, control excesses, and create a competitive market aligned with other legal gambling forms like casino, casino-games, and sports-betting.
Finance Minister Mario Marcel and Subsecretary Heidi Berner emphasize the bill's importance in combating risks such as money laundering and creating a safe and fair online betting environment.