Chile's online gambling bill moves forward as transitional licences and tax gaps divide industry

Chile's online gambling bill, first introduced in 2022 and held up by repeated delays, appears to be gaining momentum. On 26 October the government of President José Antonio Kast presented a significant package of amendments to the Senate's Economic Committee. The changes would legalise private operators under a licensing and tax regime.

Under the package, operators would receive five-year licences. A 19% VAT would apply to the margin between stakes and winnings, and a separate 3% levy would be added. Advertising and promotional bonuses would be banned, and players would be given default limits on deposits and playing time. Land-based casinos could offer online betting on their premises through agreements with licensed partners.

The most contentious element is the transitional regime for platforms that already operate without a licence. They would be able to apply for transitory licences and keep operating while they go through technical certification and supervisory review. Proposed fees vary widely, from a monthly tariff of 73,000 UTM, Chile's inflation-adjusted tax unit, to a one-off or periodic payment of 3,000 UTM, roughly $219,000. The lower figure has drawn sharp criticism as a possible pardon for past illegal activity, rewarding companies that avoided compliance and tax obligations. Critics say this would undermine the aim of a level playing field and distort competition against fully licensed participants.

The Senate remains divided. Earlier this month Senators Diego Ibáñez and Gastón Saavedra proposed an alternative that would ban online gambling entirely. Senator Daniel Núñez put forward a separate amendment that would reserve the market for Chile's two existing lottery operators and penalise customers who knowingly and repeatedly bet on illegal sites within a 90-day period. Last month, telecommunications authorities ordered internet providers to block 42 gambling URLs following court rulings.

The Asociación de Casinos y Juegos, which represents the licensed casino sector, has been among the loudest critics. Its executive president, Cecilia Valdés, told Diario Financiero's DF al Cierre programme that some regulatory clarifications were positive but that "fundamental asymmetries" remain. She is concerned that online platforms could operate without consequences for earlier illegal activity. "We want competition, but it has to be real, fair and from serious companies," she said. Valdés also pointed to differing tax burdens: licensed land-based casinos pay specific taxes that help fund municipalities and local governments.