Chilean UDI Deputies Propose Ban on Tax Collection from Unauthorised Online Betting
UDI deputies Sulantay and Cretton seek to amend the 2027 Budget Law to block SII tax collection on unlicensed online betting, citing conflict with the Supreme Court’s illegality ruling. Industry leaders call for full licensing instead of interim tax or blocking measures. The market generates US$650m GGR annually, potentially reaching US$1.2bn by 2028.
SCCG Take — Taxation before licensing sends contradictory signals that prolong uncertainty and deter compliant operators. Chilean lawmakers must prioritise completing the Senate bill to establish a unified regulatory and fiscal framework.
Deputies from Chile’s Unión Demócrata Independiente (UDI) party plan to introduce an amendment to the 2027 Budget Law preventing the Servicio de Impuestos Internos (SII) from collecting taxes from online betting platforms that lack authorisation to operate.
Marco Antonio Sulantay and Eduardo Cretton highlight the inconsistency between the Supreme Court’s ruling deeming these operations illegal and the tax authority’s pursuit of revenue. The measure would bar the SII from implementing, administering or maintaining special tax mechanisms for such platforms, according to G3 Newswire.
The deputies maintain that their proposal does not oppose regulation. They argue taxation should come after, not before, a defined legal framework.
Core Contradiction in Current Approach
This development intensifies Chile’s online gambling debate. Following the Supreme Court’s September 2025 decision, the Santiago Court of Appeals has seen continued enforcement, with 42 websites blocked. The SII has sought to apply VAT, while broader legislation sits in the Senate’s second constitutional stage.
Sandra Kemp of iGaming Responsable has questioned the current tactics. Neither website blocking nor tax collection amounts to effective regulation. Kemp described revenue collection as a transitional step pending comprehensive rules on licensing, oversight, transaction traceability and minor protections.
Chile’s online betting market produces roughly US$650m in annual gross gaming revenue. Projections from H2 Gambling Capital see that rising toward US$1.2bn by 2028.
Where the Legislative Process Stands
The amendment’s fate depends on gathering opposition support during budget talks. Its advancement could delay or complicate formal regulation. For operators and investors, the mixed messages — illegal yet taxable — create operational risk until lawmakers deliver a coherent licensing regime. Progress on the Senate bill will ultimately dictate when stable rules and taxation can coexist.
Reporting: G3 Newswire
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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