TLDR
- Chile’s CMF proposed rules requiring payment operators to serve only licensed gambling businesses
- The plan comes from a public consultation on activities allowed for payment card operators
- CMF President Catherine Tornel confirmed the rule would apply to deposits and payouts
- Unlicensed online casinos, even those based overseas, would be affected if illegal under Chilean law
- The move follows other government steps including Supreme Court rulings and new tax registration rules
Chile’s Financial Market Commission, known as the CMF, has proposed new rules for payment operators working with online casinos. The regulator wants payment providers to only offer services to gambling businesses that are legally authorized in Chile.
The proposal comes from a public consultation launched by the CMF. The consultation is reviewing which activities payment card operators are allowed to support.
CMF President Catherine Tornel raised the issue during a recent meeting. She said the plan follows Chile’s broader effort to define the legal status of online gambling sites that operate without a license.
CMF Proposal Targets Unlicensed Casinos
Under the plan, payment operators would only be allowed to serve companies that hold proper gambling licenses in Chile. This includes online casinos based outside the country.
If those overseas platforms would be considered illegal under Chilean law, payment operators could not process their transactions either. The rule treats foreign and domestic unlicensed casinos the same way.
Tornel was asked directly whether the rule would stop payment operators from working with unlicensed casinos. She confirmed that it would.
She explained that only companies with the necessary license can legally run a casino business in Chile. Any company without that license would not be considered legitimate under the proposed rule.
According to Chilean outlet La Tercera, Tornel said payment operators could not provide services to companies that lack legal recognition in Chile. She said this applies directly to online casinos operating without authorization.
Payouts Could Also Be Blocked
The proposal does not stop at deposits. Tornel confirmed that payouts, including withdrawals from gambling sites, would also fall under the new rule.
She said that if the regulation is approved as written, payment operators could not process payouts for activities considered illegal in Chile. She noted that unlicensed online gambling currently falls into that category.
This means players using unlicensed platforms could face problems both funding their accounts and withdrawing winnings. Payment operators would be required to cut off both sides of the transaction.
The CMF’s move is part of a larger pattern of regulatory action in Chile. The country’s Supreme Court has already ruled on the legality of unlicensed betting sites.
Chile’s Internal Revenue Service, known as SII, has also introduced a system allowing foreign betting companies to register for Digital VAT. That system helps companies meet their tax obligations.
However, registering for tax purposes does not mean a company is authorized to operate a gambling business in Chile. Tax compliance and gambling licensing remain separate processes under Chilean law.
If the CMF’s proposal is approved, payment operators would face new limits on which gambling companies they can work with. This would apply to both collecting funds from customers and sending payouts to winners.
The plan would add to a growing list of tools Chile is using to manage online betting. These include licensing requirements, tax rules, and enforcement actions from the courts.
The CMF has not announced a date for when the proposal could be finalized. The public consultation process remains open as regulators review responses.
