Chilean lawmakers are once again tackling how to bring online gambling into play
A bill to legalize online gambling failed to advance in Chile last year. However, Congress and the Senate have started to work on revamping future gambling legislation after lawmakers failed to reach a resolution on the issue last year. The two chambers still need to evaluate the new articles to finalize Ley N°035/2022, which was first introduced in March 2022 and includes a proposal to allow online gambling.
Lawmakers have already agreed on the online gambling framework and proposed a 20% tax on gross operator income. However, the bill was stuck in the Senate Economy Committee last year while waiting for other departments to submit legal definitions, technical requirements and penalties.
Meanwhile, the Supreme Court upheld legal challenges from current monopoly operators asking that online gambling be considered an illegal activity until the new law is in effect, which would restrict access to gambling platforms. The new legislation would effectively end the monopolies of the Loteria Concepción and Polla Chilena football pools and the online pari-mutuel horse racing operator Teletrak Chile, which are seeking protection for their platforms.
Carlos Baeza, a lawyer representing the companies, believes monopoly operators were simply blocking the passage of a Federal Gambling Bill. “There is no provision in the Chilean legal system that prevents the development of online betting,” Baeza told the Senate Economic Commission.
The Supreme Court mandated that the new legislation employ a 12-month cooling-off period for providers previously operating in the grey market. Offshore operators, including Betano and Betsson, contend that Chilean law doesn’t explicitly prohibit online gaming. However, the regulator, La Superintendencia de Casinos de Juego (SCJ), believes the activity is illegal without explicit legal regulation.
