Chile proposes a 22% tax on online betting and allows advertising contracted before the law to be maintained for up to one year
The official bulletin of the Senate confirms the measures advanced by INFOPLAY and specifies that certain advertising contracts may be maintained for up to one year, with time restrictions on television and radio.
The Chilean Senate has published the complete bulletin of indications to the bill that regulates online betting platforms. The document, dated October 26 and composed of 287 pages, incorporates the 172 new indications of the Executive of José Antonio Kast, which did not appear in the previous bulletin of October 16.
The publication allows us to contrast with the official legislative text the measures that INFOPLAY advanced on October 28 based on the 114-page document presented by the Government. The specific tax regime of 22%, the licenses with an annual tax of 1,000 monthly tax units, the enabling right of 3,000 units for operators who apply for a transitory license and the possibility for land-based casinos to incorporate bets through authorized platforms are confirmed.
The main clarification concerns the general prohibition of advertising, applicable to platforms with or without a license. Although Article 41 establishes this veto, the new Twelfth Transitory Article introduces an exception for operators who have obtained a transitional license and maintain advertising contracts signed before the publication of the law.
These contracts may continue until their expiry, with a maximum limit of one year from the entry into force of the prohibition. On television and radio, advertisements may only be broadcast between 10:00 p.m. and 6:00 a.m. They must also include warnings about the risks of addiction and may not be directed at minors. Contracts will be terminated without the right to compensation when the foreseen assumptions are met.
The text also clarifies that the prohibition would begin to apply 30 days after the publication of the Superintendence's resolution confirming the resolution of all requests for temporary leave.
In tax matters, the indications confirm the application of the 19% value added tax to the positive difference between the amounts bet and the prizes paid, in addition to an additional tax of 3% on the same basis. Operating licenses will be subject to an annual levy of 1,000 monthly tax units.
For operators who have already carried out activity in Chile, the fourth transitory article requires declaring and regularizing the tax corresponding to the 36 months prior to the declaration. Compliance must be accredited through payment or a current agreement with the Treasury to request a license. The text allows the deduction of taxes that have already been declared and paid.
It is also confirmed that land-based casinos will be able to offer online platform bets within their facilities, always through agreements with authorized and certified operators. The gross income from these bets will correspond to the digital platform. On the other hand, the prohibition of bonuses and promotional offers aimed at attracting or retaining players is maintained, even when they are not publicly announced.
The bulletin also includes other alternatives for the transitional regime, including a proposal of 73,000 monthly tax units presented in parliamentary indications. This amount is not part of the new proposals of the Kast Executive, which establishes an enabling right of 3,000 units to access the transitional license.
The 172 indications of the Government are now incorporated into the particular discussion of the project in the Senate Economy Committee. None of these measures is yet approved legislation, so its final wording will depend on the parliamentary process.
