Online Betting Debate in Chile Is Hardening

The debate over online betting in Chile is hardening. The government is advocating licenses for private operators, while some senators propose banning private companies entirely or allowing only state lottery operators.

President José Antonio Kast's government submitted a 114-page package of amendments to the Senate. The bill was proposed in 2022, approved by 27 votes in August 2025, and is now in its second constitutional review. Under the package, private operators would receive five-year licenses and pay about 77,000 dollars each year, equal to 1,000 monthly tax units. A 19 percent VAT and a separate 3 percent gaming tax would apply to betting earnings.

The regulation bans advertising and promotional bonuses. Default limits on deposit amounts and playing time would be set for players. Companies that operated without a license last year may not apply unless they sign a transition agreement.

Senator Paulina Núñez's proposal limits online betting to Polla Chilena de Beneficencia and Lotería de Concepción only. These operators would be barred from adding new betting products, while the proposal calls for penalties for unlicensed operators and permanent access blocks for illegal sites. Senators Diego Ibáñez and Gastón Saavedra want private companies shut down entirely. Companies registered with the tax office would be given up to 24 months, and violations would carry prison sentences of six months to three years.

The debate flared up with this proposal, which was inspired by Brazilian President Lula's ban on betting. A similar ban is also being considered in Buenos Aires.