Chile's online betting law: advertising ban proposed

The Chilean government has proposed new regulations that keep five-year online betting licenses but introduce an advertising ban covering all platforms, both licensed and unlicensed. The package replaces the previous administration's proposals and includes stricter conditions that strengthen player protection. The Senate Economic Committee began reviewing the regulations on 27 October.

The advertising ban covers the entire sector. Anyone who produces, distributes or acts as an intermediary in advertising falls within its scope. Existing advertising contracts held by licensees in the transition period may last up to one year, but this will apply only outside the hours set to protect minors.

On the tax side, a 19% VAT and an additional 3% tax will be levied on the monthly difference between bets and payments. According to the Finance Ministry, this amounts to an effective rate of 22%. Licensed operators will also pay 1,000 UTM per year. The previous 20% betting tax, along with the 2% and 1% contributions earmarked for sports and responsible gambling, has been abolished. These will be replaced with funding transferred from the national budget.

Existing operators seeking a transition permit must pay a 3,000 UTM entry fee and must have settled or set up a payment plan for their digital VAT debt over the past 36 months. Full payment will eliminate past tax liabilities arising from declared transactions. Applicants for permanent licenses must be Chilean companies, hold a minimum capital of 5,000 UTM and use a .cl domain name.

Additional safeguards include separate player funds, free withdrawals within 24 hours, default deposit and time limits, and restrictions on bonuses. Payment intermediaries will be required to reject transactions from unlicensed platforms. The bill was submitted in March 2022 and is still under discussion in the Senate. It must also pass the Finance Committee.