Chile’s CMF Proposes Barring Payment Services to Unauthorised Online Gambling Platforms
Chile’s CMF proposed barring payment operators from servicing or paying out to unauthorised online gambling platforms, updating permitted activities to lawful entities only. This follows Supreme Court rulings deeming such betting illegal and Subtel’s order to block 42 sites. It adds financial enforcement while licensing legislation is debated.
SCCG Take — The payments barrier tightens the noose on offshore operators pending licensing, favoring compliant entrants once the framework passes. Regulators gain a practical interim tool without new statute.
Chile’s Financial Market Commission (CMF) has proposed rules that would prevent payment operators from providing services to unauthorised online gambling platforms. The measure would also block processing of payouts from such platforms, creating an additional enforcement layer while Congress debates a licensing framework for the sector.
The proposal was published for consultation in August. It updates the list of complementary activities that payment card operators may conduct, restricting authorisations to entities operating lawfully in Chile with all required permits, licences or concessions. Services to foreign activities that would be illegal if conducted in Chile are excluded.
CMF Position on Application to Online Casinos
CMF President Catherine Tornel said the provision would apply to online casinos because unauthorised online gambling is currently considered illegal in Chile. Tornel added that payment operators would be unable to provide services to platforms without a business recognised as legally operating in the country.
Asked whether payouts would also be covered, Tornel confirmed that if the rule is approved in its current form, payment operators would not be able to process payouts for activities considered illegal in Chile.
Pending Licensing Debate and Recent Enforcement
The proposal arrives as Chile continues to debate legislation establishing a regulated online betting market. The Supreme Court has previously ruled that unauthorised online betting is illegal, while the government has enabled foreign online platforms to register for VAT on transactions with Chilean customers.
According to G3 Newswire, the CMF rules would strengthen enforcement through the payments system while the broader licensing framework remains unresolved. Earlier this month, Chile’s Telecommunications Subsecretariat ordered six internet service providers to block 42 online betting and gambling URLs within 48 hours.
Reporting: G3 Newswire
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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