The Chilean Internal Revenue Service (SII) anticipates collecting more than $100 million per year from the use of Value Added Tax (VAT) on foreign online betting websites operating in the country.
The figure was announced by Jorge Trujillo, SII Director, after the publication of a resolution that introduced a registration scheme for operators without domicile or residence in Chile. With this scheme foreign betting and online casino and digital gaming sites will be able to register and make their VAT payments related to Chilean customers transactions.
As noted by Trujillo this money will surpass $100 million which underscores the large size of the online betting market in Chile and the growing interest of the government towards this segment of the economy. This mechanism will be provided by Resolution No. 69 of 2026 according to which operators from other countries will need to declare and pay VAT for services provided to clients residing in Chile.
However officials noted that this project only concerns tax aspects and does not imply any kind of legal recognition or authorization of online betting in the country. The SII stressed that its mission consists only of collecting taxes on economic activity already existing in the country.
Political Debate Over Taxation and Legality
As explained by Trujillo the task is just to make these operators pay their taxes for the transactions providing them with income even in the case when the discussion about the legalization of online betting continues. Despite all this the new regulation has caused some discontent among political leaders and representatives of Chile land based gambling industry.
One of the biggest opponents of this measure has become Congressman Diego Schalper, National Renewal Party (RN). He pointed out that there was some inconsistency between the classification of certain activities as illegal and the requirement of payment of taxes by the operators.
Diego Schalper argued firmly against the implementation of the resolution during a legislative session:
“You cannot classify an activity as illegal and, at the same time, believe that it has the ability to pay taxes. We believe there is an inconsistency, and we have asked the government to reconsider this situation. What is illegal cannot be taxed.”
He argued that such a requirement for the operators would create a misperception among citizens about the legitimacy of these companies which did not have any kind of legal authorization to operate in the country. The Superintendence of Gaming Casinos (SCJ) and the Supreme Court of Chile have stated several times that the online betting platforms did not receive any kind of authorization to operate. This statement forms the foundation of debates concerning the future of this sector.
However at the same time the SII is defending its position and insists that the questions of legality and licensing and oversight of the sector are the competence of other institutions. For tax authorities the issue seems simple if there is economic activity and revenues in Chile then taxes from it should be collected. Whether or not this sector should be legalized or regulated or banned is another matter for debate.
This step has also increased the intensity of the debate about the connection between taxation and legality. As the debate over the creation of a regulatory framework for online betting in Chile continues this question is likely to remain at its center.
