Chile has taken a significant step toward establishing its first formal regulatory framework for online betting platforms. The Senate Finance Commission has unanimously approved the general outline of a comprehensive bill designed to regulate the sector.
The legislation, which is now in its second constitutional stage of review, will proceed to the full Senate for a general vote. If it passes, it will then return to the Economy and Finance committees for a detailed, article-by-article analysis, bringing the country closer than ever to a licensed online gambling market.
The proposed law aims to formalize the burgeoning online betting industry, create fair market conditions, and enhance public oversight and consumer protection.
A key fiscal component confirmed by Heidi Berner, the Undersecretary of Finance, is that all digital betting services will be subject to the country’s standard 19% Value Added Tax (VAT).
This rule will apply to all operators, including those based abroad, with no exemptions. Berner estimates that the total tax burden for licensed operators under the proposed model will remain below 28%.
The bill also includes crucial measures to prevent underage gambling and enforce platform restrictions on vulnerable individuals.
The development of the legislation has been a collaborative process, with the commissions holding extensive hearings with a wide range of stakeholders.
Input was gathered from national lottery bodies, casino associations, digital platform representatives including Betsson, Betano, and Coolbet, as well as the horseracing industry and child protection advocates.
According to Undersecretary Berner, the regulation will provide the necessary legal foundation to prosecute unlicensed operators once the official licensing system is established.
While amendments are expected during the next stage of review, this unanimous approval marks a critical milestone in aligning Chile’s online gambling sector with its existing licensed land-based gaming industries.
