Chile’s relationship with gambling is a tale of two worlds. For decades, land-based casinos have thrived, generating significant revenues. However, the online space has remained largely unregulated, with offshore operators catering to a growing demand for sports betting and iGaming experiences. This dichotomy is about to change, with a potential legislative shift poised to reshape the igaming and sports betting market in Chile.
Chile has a well-established casino industry. The state-owned Polla Chilena de Beneficencia has a monopoly on lotteries, while private companies operate casinos in concession locations. These casinos cater to a significant domestic audience and have experienced steady growth.
Despite the lack of regulation for online gambling, Chile has seen a surge in participation. It is estimated that the offshore market generates a staggering $130-170 million annually. This figure underscores the significant demand for online betting options, including both sports and casino games. However, the lack of regulation poses challenges. Players have limited consumer protection, and the government is missing out on potential tax revenue.
Most of the sports betting population in Chile is between the ages of 25 and 34. The average bettor visits a Chilean bookmaker 1-3 times per week. The average spend per visit in 2022 was around $90. This was a significant improvement compared to previous years, especially after the COVID-19 crisis. The most popular sport at Chile betting sites is soccer. No other sport comes close, although tennis and Formula 1 betting are also very popular.
Recognizing the economic potential and the need for oversight, Chilean lawmakers have taken steps to regulate the online gambling market. In December 2023, the Chamber of Deputies passed a bill that would pave the way for a legal and competitive online gaming industry. The bill proposes a licensing framework that would permit qualified operators to establish themselves in the Chilean market. The move is expected to generate considerable tax revenue for the government and provide much-needed consumer protection for players.
While the potential benefits of regulation are undeniable, challenges remain. Determining the tax structure and licensing fees will be critical to attracting reputable operators and fostering a healthy market. In addition, ensuring responsible gaming practices and preventing underage participation will require a robust regulatory framework and ongoing enforcement efforts.
The Chilean Senate is currently reviewing the online gambling bill. If approved, it will mark a significant turning point for the igaming and sports betting market in the country. A well-crafted regulatory framework has the potential to unlock substantial economic benefits, create a safer environment for players, and position Chile as a leader in regulated online gambling within Latin America.
The future of igaming and sports betting in Chile is full of possibilities. With a potential shift towards regulation, the industry is poised for significant growth. The success of this endeavor will depend on the government’s ability to strike a balance between generating revenue, protecting players, and fostering a competitive and responsible online gambling market. As Chile navigates this exciting new chapter, its experience will be closely watched by other countries in the region considering similar regulatory reforms.
