Chile delays online betting bill amid technical talks
Chile’s Senate Economy Committee has agreed to create a technical working group with the Finance Ministry to address pending amendments to the long-debated online betting regulation bill. The move further delays the legislative timeline for a sector that has operated without a clear legal framework for years.
Finance Minister Jorge Quiroz, through committee president Gastón Saavedra, confirmed the government’s plan to coordinate changes before setting a new deadline. Saavedra explained: “The Minister of Finance proposed setting up a technical working group to resolve the changes we are proposing and those they will make. The idea is to bring together our advisors and those from the ministry, and after that set a new deadline to submit amendments.”
Legislative background
Originally introduced under former President Sebastián Piñera, the bill passed its first reading with broad support. Now in its second reading, it has accumulated 377 pages of amendments as of the May deadline, underscoring the complexity of the debate.
Key provisions
Chile’s online betting market sits at a critical economic crossroads. The unregulated sector is valued at more than $3.1 billion, far outpacing the licenced casino industry. Regulation, however, could generate $180–200 million annually in tax revenue and help stabilise a shrinking land-based market, according to several media reports.
The proposal would establish a licencing system for online operators, impose a 20 per cent tax on gross gaming revenue, require VAT and corporate income tax payments similar to those for land-based casinos, and allocate 2 per cent of gross revenue to sports bodies, including Chile’s Olympic and Paralympic committees. Senator Matías Walker noted that the financial report projects annual collections of up to $200 million.
A study also found that 26 per cent of young people placed online bets in the past year, highlighting social and public health risks, according to iGaming Business.
Tax fairness and SII resolution
Tensions escalated after Chile’s Internal Revenue Service (SII) issued a June 2 resolution requiring foreign online betting platforms without local presence to register and pay VAT, aligning them with other international digital service providers. The measure was framed as a tax fairness issue rather than a step toward legalisation.
But senators quickly contradicted the move. They argue that it contradicts the existing law and a 2025 Supreme Court ruling that ordered telecoms providers to ban 23 unlicenced bettting sites. Furthermore, critics cautioned that taxing banning operators weakens credibility and enforcement.
Contradictions and legal gaps
Saavedra underscored the contradiction: collecting taxes from platforms prohibited from operating raises questions about the origin of their capital, since such operators are not required to report to Chile’s Financial Intelligence Unit. Eduardo Cáceres, Acting Superintendent of Gaming Casinos, reinforced the gap: “The law allows operators to run games in a physical location, which is a casino. It does not cover online games; they are not authorised.”
Regional and global context
Chile’s regulatory debate mirrors broader global trends. Latin America is rapidly opening online betting markets, with Brazil, Colombia, and Peru leading the way, while Europe continues to tighten enforcement under national regulators.
The delays also shed light on the tension between adopting regional models and Europe’s stricter consumer-protection system. Moreover, extensive inaction could risk pushing players toward offshore sites. This undermines tax collection and weakens regulatory credibility.
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