Senate Receives Amendments as Chile's Online Gambling Bill Advances with Unresolved Tax and Licensing Conflicts

Chile’s online gambling bill is advancing after President José Antonio Kast’s government submitted amendments to the Senate’s Economic Committee on 26 October. The measures would legalise private operators via five-year licences, a 19% VAT on the margin between stakes and winnings, and a separate 3% levy. The bill, first introduced in 2022, has faced repeated delays.

Additional provisions would ban advertising and promotional bonuses while imposing default limits on deposits and playing time. Key disputes remain on the treatment of previously unlicensed operators, advertising rules, and unequal tax burdens relative to brick-and-mortar casinos. According to iGaming Business, industry voices warn that the proposals could favour unregulated platforms and threaten the viability of Chile’s traditional regulated casino sector.

Contentious Transitional Licences for Prior Unlicensed Operators

The transitional regime would permit operators already active outside the formal framework to apply for temporary licences during technical certification and review. Fee structures under discussion range from a 73,000 UTM monthly tariff to a one-off or periodic payment of 3,000 UTM, roughly $219,000. Critics describe the lower threshold in particular as a potential pardon for past illegal activity that distorts competition against fully compliant participants.

The plan would also allow land-based casinos to offer online betting on premises through licensed partners. Senators Diego Ibáñez and Gastón Saavedra have proposed banning online gambling outright. Senator Daniel Núñez suggested reserving the market for the two existing lottery operators and penalising customers who bet repeatedly on illegal sites within any 90-day period. Chile recently ordered blocks on 42 unlicensed gambling URLs.

Where the Competitive Risk Lies

The Asociación de Casinos y Juegos has raised the sharpest objections. Executive president Cecilia Valdés acknowledged certain regulatory clarifications but stressed that fundamental asymmetries persist in tax obligations. Licensed land-based casinos pay specific taxes that finance municipalities and local governments, unlike the proposed online structure. Valdés said: “We want competition, but it has to be real, fair and from serious companies. That’s the most important thing of all.”

The Senate must still reconcile these positions. Without adjustments to transitional fees and tax parity, the final regime risks undermining licensed operators that have met longstanding fiscal duties. The outcome will shape whether Chile establishes a balanced market or entrenches distortions that favour prior non-compliance.