Chile's online gambling bill faces ban and lottery-only counterproposals in Senate

Chile's debate over how to regulate online gambling has sharpened, with the government backing a licensed private market while senators table rival proposals that would shut private operators out.

Earlier this week, the government of President José Antonio Kast filed a 114-page set of amendments to the bill. The legislation was first introduced in 2022 and is now in its second constitutional review in the Senate, after the chamber approved it in August 2025 by 27 votes to three, with five abstentions.

Under the government's framework, private operators could obtain five-year licenses and would pay an annual fee of 1,000 monthly tax units, roughly $77,000 at current rates. The tax regime would apply 19% VAT to the difference between stakes and winnings, plus an additional 3% gambling tax. Advertising and promotional bonuses would be prohibited, and default limits on player deposits and playing time would be introduced. Companies that operated without a license in Chile during the previous year would generally be unable to apply, unless they reached a transitional agreement with the authorities.

Two counterproposals challenge this approach. Senator Paulina Núñez proposes restricting online gambling to the existing lottery operators, Polla Chilena de Beneficencia and Lotería de Concepción, which would not be allowed to add new gambling products. Her plan would also create criminal penalties for unlicensed operators and permanent website blocking against illegal platforms.

A more radical proposal from Senators Diego Ibáñez and Gastón Saavedra would impose a full ban on private online gambling operators. Companies already registered with the tax authority would have up to 24 months to cease operations. Under the text, a platform would be considered to operate in Chile if it accepts bets from users in the country, regardless of where its servers or other infrastructure are located. Violations could bring prison terms of six months to three years, along with financial penalties.

The source article links the discussion to a broader trend in Latin America, pointing to Brazil, where President Lula's Provisional Measure 1,394 is described as a ban on gambling, and to Buenos Aires in Argentina, which is reportedly considering a similar step.