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Chile to begin online betting and gambling regulation

The Chile government is making notable progress in implementing a new law to regulate online betting and gaming platforms. Chile Betting Regulation

The Chamber of Deputies approved and sent a bill to the Senate on Tuesday, the 12th, to create a competitive market and ensure player safety and well-being.

Additionally, the government aims to bring transparency to the market and keep tax revenue within the country. The new legislation will require online gaming operators to obtain licenses, with a focus on the prevention of crimes, money laundering, and the protection of users, especially minors. This is positive news for operators who were previously forced to cease operations in Chile.

The bill proposes a regulatory framework that rewards compliance and imposes strict penalties on illegal operators. The Casino Games Superintendence will be granted additional powers to oversee the growing sector, while the Financial Market Commission, the IRS, and the Financial Analysis Unit will also play expanded roles.

Furthermore, the government intends to develop a responsible national online betting policy in collaboration with the Casino Games Superintendence and the Ministries of Finance and Health. This policy aims to ensure responsible gambling practices, prevent gambling-related issues, and establish guidelines for advertising and promoting operators.

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The regulations aim to protect minors by prohibiting them from opening or maintaining accounts without proper identification. In addition, betting operators are prohibited from promoting participation through targeted advertising or promotions, and the use of payment instruments in their names is completely banned. Individuals will have the option to self-exclude and set gambling patterns that will trigger alerts for violations. The superintendency may also issue alerts for common risk patterns as part of its regulatory duties.

The legislation also prohibits betting on individuals who have an impact on the results, such as players, athletes, and organizational leaders. It addresses the manipulation of betting objects to influence uncertainty, such as placing bets on yellow or red cards in football or similar actions.

Chile’s Chamber of Deputies has categorized online gambling as a “digital entertainment service” and has determined that online operators must pay VAT at a rate of 20%, similar to their physical counterparts. However, there are additional tax requirements. The bill introduces a 2% annual tax on gross betting revenue for authorized platforms, with the proceeds benefiting the National Sports Institute. The funds will also be distributed to sports federations, the Olympic Committee, and the Paralympic Committee. Additionally, a 1% tax rate increase has been added to cover the costs of creating and maintaining Chile’s responsible gaming initiatives.

The legislation was swiftly approved by the Chamber of Deputies, highlighting the urgency with which Chile wants to progress with the project. However, the bill may face delays as it moves through the Senate, particularly during the holiday period.

Source: iGaming Brazil Chile Betting Regulation

Jeremiah Maangi

A trusted igaming leader & author for articles bringing positive change in the African gambling industry. African gambling domains broker. Intelligent knowledge of customer acquisition and retention strategies. Available for new & existing gambling operations consulting and marketing services in Africa. Crypto enthusiast.

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