TLDR
- Chile’s Senate Economy Commission is advancing a draft law to regulate online gambling.
- Authorities have already banned 42 illegal gambling sites while 39 more are registered for taxes.
- The bill proposes mandatory ID verification and bans minors from accessing betting platforms.
- New licensing rules would require operators to be legally based in Chile.
- The plan adds a dedicated gambling tax to fund sports programs and addiction treatment.
Chile’s Senate is moving ahead with a plan to regulate online gambling. The Senate Economy Commission is reviewing a draft law with input from the Executive branch.
The goal is to create a legal betting market that is taxed and transparent. Lawmakers want clear rules that separate legal operators from illegal ones.
The Internal Revenue Service and the Undersecretariat of Telecommunications gave updates during the commission’s last session. They explained the current state of gambling regulation in Chile.
Senators pointed out a problem in the current system. Some banned gambling sites are still collecting Digital VAT, which creates confusion about which platforms are legal.
Lawmakers Question the Current Rules
Authorities have already blocked 42 online gambling websites. Another 39 sites are registered for tax purposes, according to Subtel.
Subtel expects to collect about $100 million in tax revenue by October. The agency collects these taxes every quarter.
Senators Saavedra, Walker and Celis have outlined steps they want included in the new bill. They say the rules need to be clearer so people can tell legal and illegal platforms apart.
The proposed law includes new consumer protection rules. These rules focus on the mental health of bettors and the wider public.
The bill calls for mandatory ID verification for anyone using a betting site. It would also block minors from accessing these platforms.
A National Responsible Betting Policy is part of the plan. This policy would work to prevent problem gambling among users.
The proposal would limit how people can pay for bets. It would ban cash and physical prizes used as incentives to attract players.
The bill would also stop people from betting against athletes, coaches, referees and sports officials. This rule aims to protect the integrity of sports events.
Licensing, Taxes and Enforcement Plans
Under the new rules, betting companies would need to be legally registered in Chile. They would also need offices and addresses in the country.
The bill calls for more transparency about who owns these betting companies. Advertising rules would also become stricter, including a ban on gambling ads at times when minors might be watching.
The plan includes a new tax specifically for gambling companies. This would apply on top of the existing VAT.
Money from this tax would support community sports programs. It would also fund treatment for problem gambling and support the Common Municipal Fund.
The bill would give more power to Chile’s regulators. Groups like the Superintendency of Casinos, the CMF, the SII and the Financial Analysis Unit would gain new tools to monitor the industry.
These tools would include site blocking, tracking of financial transactions and penalties under Chile’s economic crime law. The aim is to make it harder for illegal operators to work in the country.
Discussions in the Senate Economy Commission are ongoing. Lawmakers are still working out how these measures will fit into the final version of the bill.
