The Senate Finance Commission in Chile has unanimously approved a bill to regulate the country’s online gambling industry. Once it passes all necessary scrutiny, lawmakers can propose amendments before the bill returns to the Finance Commission for the next round of review.
Chile Online Gambling Bill Passes Unanimously in the Senate: Key Points
- The legislation is in the second stage of constitutional approvals. It will be presented to the full Senate before being sent to the Economy and Finance committees for further scrutiny and amendments.
- The bill will establish a regulatory framework for online betting operations. It aims to enforce fair betting conditions, a minimum age for gambling, a uniform tax regime, and government oversight.
- Lawmakers consulted industry stakeholders, including domestic and international betting companies, child protection groups, horse racing organisations, etc., and gathered their feedback before shaping the policies.
Chilean Online Gambling Bill to Introduce Regulatory Reforms and Consumer Protection Policies
Chile has taken a significant step in regulating its online gambling industry. In a recent development, its Senate Finance Commission unanimously approved the general framework to regulate the iGaming sector. Bill No. 14838-0 is now awaiting a vote from the full Senate.
If approved, it will be forwarded to the Economy and Finance Commissions for further scrutiny. The bill’s primary objective is to safeguard consumers from unregulated online operators with questionable fairness. It aims to increase transparency and foster a sense of accountability in the domestic gambling market.
By implementing a formal framework, lawmakers are trying to ensure fair play, nurture licensed operations, prevent online casino fraud, and minimise gambling harm. Under the proposed legislation, both domestic and foreign iGaming operators must follow measures to prevent underage gambling and enforce platform restrictions.
The foreseen measures include biometric identification, age verification, and payment-blocking systems to prevent the proliferation of illicit gambling operators targeting Chilean consumers. By enforcing strict government oversight, the bill is poised to regulate the country’s dynamic iGaming sector.
Tax Reforms Also on the Cards
The new legislation also proposes a standard 19% Value Added Tax on all iGaming operators, both local and international, in line with the country’s existing tax structure, which applies to digital services as well. Offshore platforms must also comply with the norms, and there is no respite in sight.
During a presentation to the Senate Finance Commission, chaired by Senator Ximena Rincón, Heidi Berner, Chile’s Undersecretary of Finance, explained that the new tax regime will keep the tax obligation for iGaming operators under the 28% benchmark. Berner noted:
“The way this tax burden is calculated includes generally applicable taxes like VAT, which operates with necessary credit and debit rules to generate income. Furthermore, we believe we cannot incorporate exceptions to this tax since we apply VAT to all digital services, regardless of whether they come from local or foreign providers.”
Berner further stated that the bill will allow the Chilean government to enforce strict measures against unlicensed gambling operators once the licensing framework is formally implemented.
If passed, the gambling regulation bill will be Chile’s first formal regulatory framework for online gambling. It will bring online gambling at par with land-based operations and horse race betting. The bill is currently awaiting the next round of scrutiny, following which further amendments and adjustments will be underway.
Broader Implications of Online Gambling Growth in Chile
Online gambling has been on the rise in Chile. The government is eager to regulate the sector to ensure public welfare and leverage its economic incentives. The timing is critical here as land-based casinos continue to struggle with revenues dipping 3.7% in Q1 2025.
The government is concerned since unchecked revenue loss can stifle the country’s economic growth, reduce formal employment rates, and disrupt regional development. For long, casino revenue has been crucial to the development and welfare of Chile’s local communities.
The industry employs locals directly and indirectly through jobs in the casino tourism and hospitality sectors. Therefore, community development in cities and municipalities depend on the local casinos. With online gambling on the rise, the government is looking to leverage the financial incentives of the sector for community development.