Chile Advances Online Gambling Bill with Five-Year Licenses, 22% Tax and Advertising Ban
Chile's government proposed five-year online licenses at 1,000 UTM annually, a 22% tax (19% VAT plus 3% levy), and advertising bans with player protections. Transitional rules exist for past unlicensed operators, but Senate alternatives could bar private firms entirely in favor of lotteries. The 2022 bill's path remains uncertain after October 26 amendments.
SCCG Take — Private operators face material entry risk if competing proposals prevail; tax disparities with land-based casinos could further tilt the competitive balance against regulated online entrants.
Chile's government has submitted amendments to its long-delayed online gambling bill, proposing five-year licenses, a combined 22% tax on betting margins and a near-total advertising prohibition. The changes were presented to the Senate Economic Committee on October 26, with review beginning the following day. First introduced in 2022, the legislation has repeatedly stalled over the role of private operators versus state-controlled entities.
The latest package, spanning 114 pages, would permit private companies to apply for operating licenses lasting five years at an annual fee of 1,000 UTM. Taxation combines 19% VAT on the monthly difference between bets placed and prizes paid with an additional 3% levy on the same base, reaching the 22% total. Unlicensed operators could use a transitional route by paying a 3,000 UTM enabling fee and updating digital VAT obligations for the prior 36 months. Those who continued unauthorized operations in the preceding 12 months could face permanent licensing bars.
Licensing and Tax Disputes Risk Limiting Private Market Entry
Competing proposals from Senators Diego Ibáñez and Gastón Saavedra would prohibit private online platforms outright, reserving the activity for the Polla Chilena de Beneficencia and Lotería de Concepción. The Asociación de Casinos y Juegos has objected to differing tax obligations between online operators and land-based casinos, arguing the structure disadvantages compliant physical venues. As reported by the Times of Casino, these disputes could prevent many private operators from entering the regulated market at all.
Advertising would be banned for both licensed and unlicensed platforms, along with bonuses or promotional offers aimed at customer acquisition or retention. Limited transitional relief exists for certain existing contracts. Industry association aPAL warned, per Diario Financiero coverage, that the restrictions could make it difficult for licensed operators to distinguish themselves from unauthorized competitors. The amendments add player protections including default deposit limits, time restrictions, enhanced identity verification that may require biometrics, and exclusions for self-excluded individuals, prisoners and those in the national child-support debtor register. Athletes, coaches and certain sports officials would be barred from betting on their associated disciplines. A fund for addiction prevention and treatment is also proposed.
The Senate Economic Committee continues examining the competing texts. The final shape of Chile's online framework remains unresolved, turning on whether lawmakers prioritize private licensing or maintain tighter state control.
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