Chile Proposes 22% Tax on Online Betting

The Chilean government has proposed a 22% tax on revenue from online betting. The proposals are set out in the Senate bulletin, which brings together changes to the country's online betting legislation. 172 articles of these changes were submitted on October 26 by the government of President José Antonio Kast.

Under the proposal, licensed operators will pay 19% VAT on the difference between the bets placed and the winnings paid. In addition, a further 3% tax will be levied on the same base. Private operators will be granted five-year licenses. The annual license fee will be 1,000 UTM, or about 65,000 euros. For a temporary license, 3,000 UTM, or about 195,000 euros, will be paid upfront. Operators currently accepting bets in Chile will have to pay the VAT owed for the last three years.

The government plans to ban betting advertising completely. However, companies that obtain a temporary license may continue advertising contracts they signed before the law is published for up to one year. During this period, television and radio ads may only air between 22:00 and 06:00. All ads will carry an addiction warning. The general advertising ban will take effect 30 days after the regulator announces that it has begun processing all temporary license applications.

aPAL, the association of online betting platforms in Chile, warned that the advertising ban would make it harder for licensed companies to compete with illegal foreign rivals. According to the association, if regulated platforms cannot promote themselves or offer competitive conditions, the most basic condition of player protection will not be met.