Chile's Chamber Moves Against Taxes on Illegal Online Betting

The Chilean Chamber of Deputies approved an amendment to the 2027 Budget Law that targets tax payment systems for illegal online betting platforms. The vote was 133 in favor, 2 against and 1 abstention. The vote was held on November 10.

The amendment, proposed by Unión Demócrata Independiente (UDI) deputy Eduardo Cretton, came up during the review of the Ministry of Finance budget. Under the text, the resources of the tax authority SII cannot be used to set up or manage tax filing and payment mechanisms for online betting platforms and other activities that lack operating permits in Chile. The amendment only restricts spending. It does not explicitly eliminate the tax obligations of these platforms.

The Chamber's General Secretariat had initially ruled the amendment inadmissible, mainly on constitutional grounds. Lawmakers overturned that decision, which allowed a vote on the substance of the amendment.

The debate is set against a decision SII made in June. Resolution No. 69, dated June 2, 2026, requires foreign online betting and gambling providers that have no central office or residence in Chile to register for and pay through the digital VAT system. Chile's standard VAT rate is 19 percent. The resolution also requires payment of VAT accumulated from platforms that operated during the previous 36 tax periods. Lawmakers criticized the decision over concerns that collecting taxes could legitimize illegal betting services. Chile's Supreme Court had also ruled in 2025 that online betting platforms operating in the country were illegal.