Chile’s long-awaited online gambling bill has moved to the Senate. President José Antonio Kast’s government sent amendments that would legalise private operators under five-year licences, a 19% VAT on the margin between stakes and winnings, and a separate 3% levy.
Chile online gambling bill amendments reached the Senate Economic Committee on 26 October. They propose five-year licences, a 19% VAT on the margin between stakes and winnings, a 3% levy, bans on advertising and promotional bonuses, and default deposit and playing-time limits. Disputes over transitional licences, advertising rules and unequal tax burdens remain unresolved.
- The Tax Structure Under Debate
- Transitional Licences For Illegal Operators
- Senators Split Over Banning The Market
- The ACCJ’s Asymmetry Complaint
Chile’s bill was first introduced in 2022 and has been stuck ever since. The Executive finally put a package in front of the Senate’s Economic Committee on 26 October, signalling that the wheels are turning on a legal framework that has been missing for years.
The amendments would give private operators a five-year licence, charge 19% VAT on the margin between stakes and winnings, and add a separate 3% levy. They also ban advertising and promotional bonuses, and set default limits on deposits and playing time. Following this, the industry’s concerns centre on three areas: how operators who have been active without a licence are treated, advertising limits, and the uneven tax burden between online platforms and brick-and-mortar casinos.
Chile Online Gambling: The Tax Structure Under Debate
The margin VAT is the most substantive change. Charging 19% on the margin between stakes and winnings is a departure from gross-betting taxation, which has historically squeezed online operators. The separate 3% levy on top complicates the calculation, and operators have asked for clarity on how the two figures combine.
Default deposit and playing-time limits would be set automatically rather than left to each operator. Banned outright are advertising and promotional bonuses, a move that touches marketing teams directly and is expected to draw resistance from operators who rely on acquisition spend.
AGBrief has been tracking how other Latin American markets are structuring their online gambling taxation.
Controversial Transitional Licences For Illegal Operators
The most contentious part of the package is the transitional regime. It would let online platforms already operating without a licence apply for transitory licences, permitting continued operation while they undergo technical certification and supervisory review.
AGBrief has covered how Chile’s telecom authorities ordered providers to block unlicensed gambling URLs.
The fees attached to this status are where the argument breaks. Proposals range from a monthly tariff of 73,000 UTM to a one-off or periodic payment of 3,000 UTM, roughly $219,000. Industry critics call the lower figure a pardon for prior illegal activity, rewarding companies that dodged compliance and fiscal obligations. They argue it undermines the level playing field and distorts competition against fully licensed players.
Senators Split Over Banning The Market
Senators Diego Ibáñez and Gastón Saavedra submitted an alternative earlier this month that would ban online gambling altogether. Their proposal is the opposite end of the spectrum from the Executive’s amendments.
A separate amendment from Chile Senator Daniel Núñez would reserve the market for Chile’s two existing lottery operators and penalise customers who knowingly bet on illegal sites repeatedly within a 90-day window. That is a market-limiting approach rather than a licensing one. The country has already acted against unlicensed operators: telecom authorities ordered internet providers to block 42 gambling URLs last month following court rulings.
The ACCJ’s Asymmetry Complaint
The Asociación de Casinos y Juegos (ACCJ) has been the loudest critic. Cecilia Valdés, its executive president, spoke on the DF al Cierre programme for Diario Financiero. She acknowledged some positive regulatory clarifications but warned that fundamental asymmetries persist.
AGBrief has been following Chile’s gambling trade body as it lobbies over the transitional regime.
Valdés’s complaint is about unequal tax treatment. Licensed land-based casino operators pay specific taxes that finance municipalities and local governments, while online businesses do not carry the same burden. Her words to the programme were direct: “We want competition, but it has to be real, fair and from serious companies. That’s the most important thing of all.”
She also flagged that the transitional regime would let online betting platforms operate without consequences for having been active illegally before the legislation took effect. That is the asymmetry the trade body is asking the Senate to resolve.
Frequently Asked Questions
What is the Chile online gambling bill?
The bill would legalise private online gambling operators through a licensing and tax regime. Introduced in 2022, it reached the Senate Economic Committee on 26 October, with amendments proposing five-year licences, a 19% VAT on the margin between stakes and winnings and a 3% levy.
When were the amendments submitted?
The Executive sent amendments to the Senate’s Economic Committee on 26 October. The bill had been introduced in 2022 and had suffered a series of delays before this package moved forward.
What tax terms are in the bill?
Licensed operators would face a 19% VAT on the margin between stakes and winnings, plus a separate 3% levy. Advertising and promotional bonuses would be banned, and default limits would apply to deposits and playing time.
What happens to unlicensed operators?
The draft would allow unlicensed online platforms to apply for transitory licences while they undergo technical certification and supervisory review. Fee proposals range from a 73,000 UTM monthly tariff to a 3,000 UTM one-off or periodic payment.
Who is opposing the transitional licences?
The ACCJ, Chile’s casino trade body, criticises the low transitional fee as a pardon for prior illegal activity. Cecilia Valdés, the association’s executive president, says competition must be real, fair and from serious companies.
What alternative proposals exist?
Senators Ibáñez and Saavedra proposed banning online gambling altogether. Senator Núñez’s amendment would reserve the market for Chile’s two existing lottery operators and penalise customers who repeatedly bet on illegal sites within 90 days.
This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.
