Chilean Lawmaker Diego Schalper Requests Comptroller Review of VAT Regime for Unlicensed Offshore Betting Operators
TL;DR — Diego Schalper has asked Chile’s Comptroller General to review the SII’s VAT regime for offshore betting, arguing it conflicts with the activity’s illegal status. 25 platforms registered in mid-July under the rules, which apply 19% VAT and shift liability to payment providers if needed. The SII frames it solely as tax enforcement.
SCCG Take — The review could compel alignment between finance and security ministries, reducing ambiguity for operators and investors evaluating Chile’s market entry.
A Chilean lawmaker has asked the Comptroller General’s Office to review the legality of the new VAT regime for offshore online betting operators. The challenge centers on the argument that permitting unlicensed platforms to pay taxes conflicts with the official position that such activity remains illegal.
Diego Schalper, leader of the Renovación Nacional (RN) caucus in the Chamber of Deputies, submitted the request after the Internal Revenue Service (SII) enabled offshore platforms with no Chilean domicile to register and pay value-added tax. Schalper met Comptroller General Dorothy Pérez on 31 July to seek a determination on whether these SII actions align with the legal framework, as reported by G3 Newswire.
Schalper cited the Comptroller’s prior conclusion that offshore betting platforms operate outside Chilean law. He said cases should instead be referred by the Superintendency of Casinos to the Public Prosecutor’s Office.
“The administrative act is illegal and, therefore, we hope the Comptroller will rule accordingly,” Schalper said. “It seems inappropriate that, for the Ministry of Security, betting operators are illegal, while for the authorities of the Ministry of Finance they are legal. We find that incomprehensible.”
This stance aligns with Schalper’s earlier position. In June, after the SII announced the VAT framework, he argued it is not possible for the state to declare an activity illegal while charging it taxes.
Recent SII Enforcement Actions
Between 14 and 15 July, 25 online betting platforms registered under the simplified tax regime. This followed warnings that failure to register would trigger enforcement under Exempt Resolution No. 94, issued on 15 July. The resolution uses transaction data from banks, non-bank financial institutions and payment service providers to identify platforms offering remote betting, gambling and casino services to Chilean residents.
For operators that do not register voluntarily, the SII applies a “change of taxpayer” mechanism. Liability for collecting Chile’s 19% VAT then shifts to the payment service provider, which must withhold and remit the tax.
The SII describes its Digital VAT measures as a tax administration initiative for non-resident digital service providers rather than a regulatory framework for online gambling.
The Core Tension in Policy Application
This request exposes a direct conflict between tax collection and consistent legal prohibition. In my experience advising client-partners on gaming and securities matters, such inconsistencies create uncertainty that slows investment decisions and compliance planning. The Comptroller’s forthcoming review may clarify the boundary between revenue measures and regulatory approval, an inflection point worth tracking for any party assessing exposure in the Chilean market.
Reporting: G3 Newswire
Chile's tax-vs-enforcement contradiction creates legal risk for operators, PSPs, and investors until ministries align or legislation clarifies status.
We've worked in every regulated market globally, and we see this contradiction play out often: finance wants revenue, enforcement calls it illegal. In Chile, PSPs now face withholding liability while legal status remains disputed. This Comptroller review could force clarity—or deepen risk. Operators and payment providers need to know which ministry wins.
- 25 platforms registered under SII's VAT regime in mid-July; non-compliant operators shift 19% VAT liability to PSPs
- Schalper argues SII regime conflicts with offshore betting's illegal status under Ministry of Security
- Comptroller review could compel ministry alignment or heighten compliance and investment uncertainty
SCCG angle: SCCG has regulatory, compliance, and payment networks across Latin America. If you're an operator, PSP, or investor navigating Chile's contradictory stance, we connect you to the legal, tax, and government relations specialists who know how to hedge exposure and stay compliant while this plays out.