Chile opens the door to regularizing operators who already work without a license in exchange for a toll of almost 200,000 euros

The Government of Chile has presented its indications to the bill that regulates online betting platforms (bulletin 14.838-03), in the Senate since 2022. The 114-page document was delivered on Monday, October 26, the last day of the deadline, and outlines the market that the Executive wants. There will be no advertising and the tax burden will be 22%. Operators who currently work without a license will be able to regularize themselves by paying, and physical casinos will be able to offer online betting in their rooms.

Physical casinos will be able to offer online platform bets on their premises, but only through an agreement with an operator that has a license and current certification. The text establishes that platform betting "may only be offered by the operating company". It thus opens a way of collaboration between face-to-face and online gambling in a debate in which casinos have warned about the "feeling of legality" of online gambling.

The most far-reaching measure is the prohibition of all advertising on platforms, "with or without an operating license". The veto reaches those who order, design, disseminate or mediate the advertisements. Contracts in force with operators under the transitional regime could be maintained for a maximum of one year, and only outside the hours of protection of minors. The text also prohibits bonuses, promotional offers or any benefit other than prizes aimed at attracting or retaining players.

On the tax front, operators would pay 19% VAT on the monthly difference between the bet and the prizes paid, plus an additional tax of 3%, which adds up to a burden of 22%. The licenses would last five years, with an annual tax of 1,000 monthly tax units (about 65,380 euros). According to what transpired from the session, several senators of the Economy Commission considered that 22% low compared to taxes on alcohol and tobacco.

The text includes an access filter with double reading. As a general rule, applications from companies that have operated without a license in Chile in the previous twelve months would be rejected. Among the indications are using a .cl domain, sponsoring in the country or having contracts with Chilean means of payment. However, a transitional regime would allow these same operators to regularize by paying an "enabling fee" of 3,000 monthly tax units (about 196,140 euros) and being up to date with digital VAT. Those who already declared that tax would have to declare the previous 36 months , and with that payment their responsibilities for tax breaches would be extinguished.

In terms of player protection, each account would default to deposit and connection time limits per session and per day, which the Government defines as "a safe gambling configuration by default". Reinforced authentication, including biometrics, would be required. The register of excluded persons would include the self-excluded, persons deprived of liberty and those registered in the register of alimony debtors. Athletes, technicians, managers and shareholders would not be able to bet on their own discipline. The Ministry of Finance would issue a regulation on responsible gambling, which could be reviewed every four years, and a Fund for the Prevention and Treatment of Gambling Addiction would be created, managed by the Ministries of Health and Social Development.

The document is signed by President José Antonio Kast and Ministers Jorge Quiroz (Finance), Daniel Mas, May Chomalí, Fernando Rabat and Claudio Alvarado. It was defended in the Senate by the Undersecretary of Finance, Sebastián Vallebona. It withdraws all previous indications from the Executive and renames the law as the law for the regulation of online betting, protection of children and prevention of gambling addiction. The Economy Commission will study it in a future session, still without a date.