Chile's Supreme Court Confirms Online Gambling Illegal in the Country
Chile's Supreme Court has reaffirmed that online gambling is illegal in the country and has ordered Internet service providers to block access to iGaming platforms.
LISTEN TO THIS ARTICLE:The decision reinforces the government's strict regulatory stance toward the gambling sector and establishes a binding obligation for telecommunications companies to comply with enforcement measures.
Related: Online Gambling Bill in chile Progresses via Senate Committee ApprovalThe ruling was issued in response to a petition by Loteria de Concepcion SA, one of the two licensed lottery operators in Chile. The lottery company filed an injunction against several telecommunications providers, which the court upheld. The legal action was prompted by the companies' refusal or lack of response when asked to block access to unauthorized online gambling platforms.
In its decision, the Supreme Court made clear that preventing Chilean consumers from accessing unlicensed gambling platforms is not discretionary but a legal duty. According to the court, failing to restrict access to these services undermines the country's regulatory framework, which permits only authorized operators to conduct gambling activities under specific licenses.
Gambling in Chile is tightly controlled. By law, only Loteria de Concepcion and its rival, Polla Chilena de Beneficencia, are allowed to issue lottery tickets. Casinos and racetracks are also permitted to function, but only when operating under state-granted licenses. This structure has left online platforms without a legal basis to offer gambling services in the country.
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The ruling follows a precedent set in 2023, when the Supreme Court determined that international betting operators such as Betsson, Coolbet, and Latamwin were carrying out unauthorized activity in Chile. That earlier decision clarified that foreign-based digital gambling platforms could not legally offer services to Chilean customers, even if the companies were licensed in other jurisdictions.
The impact of online gambling has been significant in Chilean sports, particularly football. Until recently, more than 90% of clubs in the country's two professional divisions were sponsored by international betting platforms. In 2023, the government moved to restrict these sponsorship deals, further limiting the visibility of online gambling companies in the national sports arena.
Loteria de Concepcion welcomed the decision, stating that it established a precedent requiring service providers to take direct action in preventing access to illegal sites. The company emphasized that compliance with the ruling strengthens the integrity of the country's gambling sector and aligns operations with Chilean law.
Recent research has highlighted the size of Chile's online gambling market despite its illegal status. A study published in 2024 by analytics provider Yield Sec estimated that more than 3,800 operators were targeting Chilean players. Among them, around 25 companies dominated 87% of the market, which was valued at approximately $3.1 billion. The leading platforms identified were Betano, Coolbet, and Jugabet.
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