TLDR
- Chile’s government sent the Senate a plan on October 26 to license and tax online gambling operators.
- The plan includes five-year licences, 19% VAT on the gap between stakes and winnings, and a separate 3% tax.
- Senators Diego Ibáñez and Gastón Saavedra want a full ban with prison terms of six months to three years.
- Senator Daniel Núñez wants the market given only to Chile’s two existing lottery operators.
- Brazil banned online gambling on October 6, and its Supreme Court will hear the case on November 3.
Chile’s government has asked the Senate to create a licensed and taxed online gambling market. Some senators want to go the other way and ban online gambling outright.
President José Antonio Kast’s government sent a package of amendments to the Senate on Monday, October 26. The plan would set up a licensing system for private operators, with new taxes, advertising limits and player protections.
Two rival proposals from senators would change the bill in a major way. One would ban online gambling completely, while the other would give the market only to Chile’s existing lottery operators.
What the Government’s Plan Includes
Under the government’s proposal, operators could apply for licences that last five years. They would pay 19% VAT on the difference between stakes and winnings, plus a separate 3% tax.
Advertising would not be allowed under the plan. Operators would also be barred from offering promotional bonuses.
The proposals include default limits on deposits and playing time. These limits are meant to protect players.
Senators Push for a Ban or a Lottery-Only Market
Senators Diego Ibáñez and Gastón Saavedra have proposed replacing the legislation with a full ban. Their amendment would prohibit anyone from developing, operating, managing, offering, brokering or advertising online gambling platforms in Chile.
Their plan would also bring prison sentences of six months to three years for commercial violations. The penalties would target operators, not just players.
A separate amendment from Senator Daniel Núñez would reserve online gambling for Chile’s two existing lottery operators. It would also penalize customers who knowingly gamble on illegal platforms at least three times within 90 days.
Chile has already taken action against unlicensed sites. In September, telecommunications authorities ordered internet providers to block 42 gambling URLs following court rulings.
The Chilean debate follows moves elsewhere in South America. Brazil shut down its licensed online gambling market on October 6 under an executive measure signed by President Lula.
In Argentina’s Buenos Aires Province, Senator Federico Fagioli has introduced a bill dubbed the “Lula Law.” It would repeal the province’s online gambling licensing rules, banning sports betting and online casino games while keeping traditional lotteries.
That bill faces competition from a separate proposal. The rival bill would add new safeguards to the current rules, with a focus on preventing underage gambling.
Brazil’s ban is also facing legal challenges. On October 26, Supreme Court Justice Luiz Fux allowed the ban to stay in force while he scheduled a hearing.
In Chile, the Senate’s Economics Committee must now consider the three competing proposals. In Brazil, the Supreme Court will hear arguments from the government, gambling operators and football clubs on November 3.
