Chile’s Executive has given “suma urgencia” status to the bill regulating online betting platforms. This reduces the time in Congress and creates pressure over the discussion that started back in March 2022.
Currently, the bill is at the second constitutional phase in the Senate. It has gone through years of discussions and committees. The latest development seems like an effort to close a case that had been pending since offshore companies continued offering their services locally.
Chile could move from an unauthorized online betting market to a licensed model if the bill clears Congress. Companies seeking legal access to the market would have to comply with local requirements.
Licensing Plan Adds Real-Time Oversight
The draft introduces a licensing regime for betting platforms. Operators would be required to set up a company in Chile and work only in this sector.
The existing casino regulator is to take on an expanded mandate. It would be rebranded as the Superintendence of Casinos, Betting and Games of Chance under the bill. Its duties would include licensing, inspections, and sanctions.
Real-time monitoring represents another tough provision. Licensed operators would have to provide remote access to their systems, transactions, and cash flows to the regulator. The draft also calls for greater transparency on ownership structure, funding, and beneficial ownership.
Anti-money laundering controls are part of the policy framework, too. Betting operators would be required to report suspicious activities and fit into a wider public-control system.
Tax Rules Put Pressure on Margins
The proposal includes a 20% specific tax on gross revenue, plus VAT. It also adds a contribution of 1% to responsible gambling initiatives. Sports betting would be charged with a separate 2% contribution to national sports bodies. Players would pay a 15% tax on winnings when withdrawing funds.
It also appears that Chile is trying to bar current offshore operators from easy access to the licensed market. This draft text contains a waiting period of 12 months for operators that acted illegally in Chile before applying, as well as a substitute tax of 31% on gross revenue from the previous 36 months.
Player Rules and Blocking Powers
The proposal restricts entry for minors, self-excluded players, inmates, and those without a valid Chilean identification. Additionally, it creates a national self-exclusion registry. Self-exclusion would have a minimum term of six months.
There would be restrictions on advertising as well. Campaigns targeting minors would be prohibited. Unlicensed websites and IP addresses could be blocked. Payment processors could also be ordered to prohibit transfers to illegal operators.
Bottom Line
The bill still has to clear the legislative process, and its final shape may change in the Senate. Even so, the direction is clear: Chile wants a regulated market, but not a light-touch one. Soft transition rules could reward early illegal scale. Harsh rules could leave too much activity offshore.
