Online Gambling Bill in Chile Progresses via Senate Committee Approval
Chile's efforts to formally regulate its online gambling sector advanced this week as the Senate Finance Commission gave unanimous approval to the general framework of a bill targeting digital betting platforms. The legislation, which marks the country's first attempt to establish a legal structure for online gambling, now enters the second constitutional stage of the legislative process. It will proceed to a full vote in the Senate before undergoing a more detailed examination by the Economy and Finance committees.
LISTEN TO THIS ARTICLE:The proposed bill aims to provide a comprehensive legal foundation for the online betting market, establishing clear rules to ensure competitive fairness, improve regulatory oversight, and introduce consumer protection measures. If enacted, the bill would align the online gambling sector with Chile's existing gaming regulations that already govern land-based casinos and horse racing operations.
Related: Supreme Court Rules Online Gambling as Illegal in ChileUnder the proposed law, all online gambling operators, both domestic and foreign, will be subject to Chile's standard value-added tax rate of 19%. No exemptions will be made for operators based outside the country.
According to Finance Undersecretary Heidi Berner, this taxation model is designed to create a level playing field across the industry while ensuring that foreign companies contribute equally to the national tax base. The total tax burden, which includes VAT and other applicable levies, is expected to remain below 28% for licensed operators.
The legislation also introduces regulatory tools aimed at minimizing the risks associated with online gambling. Measures to prevent underage gambling and enforce access restrictions on digital platforms are embedded within the draft. The regulatory system would also support legal actions against unlicensed operators once the licensing structure is operational, providing enforcement mechanisms to uphold compliance.
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Chile Relies on Industry Input to Shape Regulations
Stakeholder engagement has been integral to the bill's development. Over several months, Chilean legislators conducted hearings involving representatives from national lottery organizations, casino operators, digital platform companies, the horseracing industry, and child protection agencies.
Online betting firms such as Betsson, Betano, Coolbet, and EstelarBet participated in consultations to provide input on the proposed regulatory framework and voice industry perspectives.
The consensus reached in the Senate Finance Commission reflects a shared legislative commitment to formalize a sector that has seen significant growth in recent years. Lawmakers emphasized that further amendments and technical adjustments are expected during the upcoming reviews by the Economy and Finance committees.
Once the bill is passed into law, Chile would join a growing list of Latin American nations pursuing structured regulation of online gambling. The legislation is expected to create a more predictable environment for operators and provide clearer protections for users, while also enhancing the government's ability to monitor and collect revenue from the expanding digital betting market.
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