Chile is taking a step toward creating a regulated online betting market. The government has expedited consideration of the corresponding bill, speeding up its passage through the local Senate.
For operators, this shift means that the time is approaching when offering niche services in the country will be possible only within the official licensing system. Under the supervision of a specialised regulator, new rules and measures are planned for implementation.
Acceleration of the Initiative Review Process
The Chilean government has designated Bill 14 838−03 as suma urgencia, the highest level of legislative priority. This mechanism obliged the Senate to consider the document within 15 days, until May 29th, and speed up the reform. Such a rush is due to the project having been under discussion since 2022, which has caused dissatisfaction and criticism.
The revised initiative aims to establish a legal framework to regulate internet-based sportsbooks in the country. While local laws currently cover brick-and-mortar venues, Chile’s digital wagering remains uncontrolled.
The Superintendency of Casinos, Betting and Games of Chance is planned to keep an eye on the industry, replacing the current SCJ body. The new institution will be empowered to certify companies, monitor their activities, and ensure adherence to rules.
Expected Requirements for Internet Bookmakers
The bill introduces a mandatory licensing system for the web vertical in Chile. To obtain a permit, an entrepreneur must register a closed corporation in the country, with its reach limited to online wagering services only.
The document also establishes the following financial obligations:
- 20% tax on operator GGR;
- payment of VAT at the current rate;
- 1% of profits to responsible gaming programs;
- 2% of revenues to support national athletic federations;
- 15% charge on audience winnings at the time of withdrawal.
Additionally, firms will be required to disclose their ownership structure, ultimate beneficiaries, and funding sources, as well as to adhere to AML standards. The regulator will remotely monitor websites in real time to track transactions and ensure compliance.
A separate section of the initiative is dedicated to user protection. Specifically, it proposes creating Chile’s National Self‑Exclusion Register that will allow citizens to voluntarily restrict their access to betting projects for 6 months or permanently.
Tightening Measures Against the Illicit Segment
A significant portion of the bill is devoted to combating unlicensed brands. The regulator will block illegal IP addresses, while Internet service providers will be required to stop processing web requests from those. Fines and other sanctions for working without authorisation are also planned.
Companies that have been operating in the Chilean market without a permit for 12 months before the law’s entry into force will not be eligible for the standard licensing system. They will be required to undergo a year of cooling-off and pay a 1-time substitute tax equal to 31% of the GGR received over the previous 36 months. Bans, fines, and even prison terms are also considered.
The authors of the urgently revised initiative note that its effectiveness will largely depend on restricting the financial transactions of illicit platforms. An additional requirement is deepened cooperation with Latin American payment organisations to prevent unauthorised schemes.
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