Chile's online betting law advances as tax debates continue

Chile's long-awaited online betting bill is moving forward in the Senate. On October 26, President José Antonio Kast's government submitted amendments to the Senate Economic Committee that would allow private operators to work under a licensing and tax regime. The bill entered Congress in 2022 and faced several delays along the way.

Under the proposed package, licenses would be valid for five years. A 19 percent VAT would apply to the difference between bets and winnings, and a separate additional tax of 3 percent would also be charged. Advertising and promotional bonuses would be banned, and default limits on deposits and playing time would be introduced for players.

Several major disputes remain unresolved. The status of operators working outside the official framework, advertising limits, and the unequal tax burden between online platforms and licensed land-based casinos are the main topics on the agenda. Industry representatives warn that the current proposals could favor unlicensed operators and threaten the survival of regulated gambling halls.

The transition period is the most debated issue. Platforms that currently operate without a license would be able to apply for a temporary license and continue operating after technical certification and supervision processes. Fee proposals range from a high tariff of 73,000 UTM per month to one-time or periodic fees of up to 3,000 UTM. 3,000 UTM is roughly 219,000 dollars. Critics see the low fee level as an amnesty for past illegal activity and argue that fully licensed players would be harmed in competition.

Under the bill, land-based casinos would be able to offer online betting at their venues through agreements with licensed partners.