Chile moves closer to regulating online betting with senate approval

Chile’s Senate has given initial approval to a bill that would regulate online betting platforms, establishing a licensing framework and introducing new enforcement and tax measures. The proposal passed in general by 27 votes to 3, with five abstentions, and will now undergo a detailed review by the Senate’s joint Economic and Finance Committees before the end of September.

The bill seeks to bring the rapidly expanding online gambling sector in line with existing regulated activities such as lotteries and horse racing. It creates a National Responsible Betting Policy, imposes restrictions on advertising, and prohibits wagering by individuals with influence over the outcome of events.

Licensed operators would be required to register as Chilean companies under the supervision of the Superintendence of Casinos, Betting and Gaming. Enforcement mechanisms would include blocking access to unlicensed websites and mobile apps, targeting payment processors to prevent transactions with illegal operators, and applying criminal penalties for promoting or running unauthorized gambling platforms.

Finance Minister Mario Marcel said the measure addresses a market that is “operating outside the law, avoiding taxes and oversight,” noting official figures that more than five million Chileans engaged with these platforms in 2024, generating over $3.1 billion in untaxed revenue.

Tax provisions under the bill include a 20% specific tax on licensed operators in addition to VAT, plus a 1% levy dedicated to responsible gaming initiatives. A further 2% charge on gross sports betting revenue would go to the National Sports Institute to support sports development.

The legislation also contains transitional measures for platforms that have been operating without authorization. Those wishing to obtain a license would face a 12-month cooling-off period and be required to pay a one-off tax based on past revenue and user accounts.

Subsecretary Heidi Berner stressed the bill’s importance in combating money laundering and improving market oversight, pointing to the current lack of effective legal tools to tackle illicit digital gambling.