TLDR
- Chile’s Subtel ordered internet providers to block 42 offshore online gambling websites.
- Telecom companies have 48 hours to block the sites using DNS blocking methods.
- The order follows rulings from the Supreme Court and the Santiago Court of Appeals.
- The case began with a legal complaint filed by Lotería de Concepción.
- Chile’s tax agency has separately registered 25 foreign gambling platforms, though registration does not mean they are authorized to operate.
Chile’s telecommunications regulator has ordered the blocking of 42 online gambling websites operating without authorization in the country. The Undersecretariat of Telecommunications, known as Subtel, announced the decision this week.
The websites are run by foreign companies and are not part of Chile’s current regulatory system for gambling. Subtel says the sites must be blocked because they operate outside the law.
Major internet providers are affected by the order. These include Entel, Movistar, Claro, GTD, WOM and VTR.
How the Blocking Will Work
Subtel will use Domain Name System blocking, also called DNS blocking, to restrict access to the sites. This method targets the specific web addresses without affecting other internet services.
The Superintendency of Casinos gave Subtel the list of sites to block. This agency reviews and confirms which gambling platforms are running without proper authorization in Chile.
Subtel Undersecretary Romina Garrido said the agency is following court orders. She said the goal is to protect people’s digital security by requiring telecom companies to act quickly.
Telecom companies have 48 hours to block the listed websites. They must then report back to the Santiago Court of Appeals with proof, including the exact date and time each site was blocked.
Legal Background of the Case
The blocking order traces back to a legal complaint filed by Lotería de Concepción. The company argued that telecom providers should not allow access to platforms operating outside Chilean regulation.
The Supreme Court ruled to ban the transmission and promotion of illegal gambling in Chile. The Santiago Court of Appeals then decided that DNS blocking was an appropriate way to enforce that ruling.
Subtel says the same blocking process can apply to other domains, subdomains or mirror sites tied to the same operators. This means new websites linked to already-blocked platforms could face blocking too.
Chile is still working on broader rules for online gambling. A bill that would create a licensing system for online gambling sites is currently being reviewed by the Senate.
If that bill passes, the rules for foreign operators could change. For now, unauthorized platforms remain subject to blocking under the current court rulings.
Chile’s tax agency, the SII, has added another layer to the situation. It created a tax registration system for foreign gambling operators serving Chilean customers.
So far, 25 platforms have registered with the SII for tax purposes. However, the agency has said that registering for taxes does not mean a platform is authorized to operate.
Some industry groups have said the tax registration system could create confusion. They argue it might make people think a platform is legal when it has not been approved to operate in Chile.
The SII has responded by saying legality and operating authorization are handled by separate authorities. Tax registration and operating approval are treated as two different processes under Chilean law.
The blocking order is part of Chile’s ongoing effort to control illegal online gambling. It comes as the country continues to debate a full regulatory framework for the industry.
