Chile's Senate committee approves online betting ban

The Economy Committee of Chile's Senate approved amendments that ban private companies from offering online betting. The committee voted on two proposals on November 9. The vote ended 3 to 1, and one member abstained. Both proposals are reported to block private operators from offering bets, but they differ in their penalties and enforcement tools.

Committee chair Gastón Saavedra announced that the two texts will be merged at the next session. The bill must then pass through the Senate Finance Committee and return to the full Senate. This process represents a departure from the model proposed by President José Antonio Kast's government in October. The government's plan included five-year licenses, new taxes, and player protection measures.

The proposal submitted by Senate President Paulina Núñez and María José Gatica excludes the private license market. Under this proposal, courts will be able to permanently block illegal betting sites. Payment services and advertisements linked to illegal betting will also be restricted. In aggravated cases, penalties may reach 15 years in prison and fines of up to 10,000 UTM. This covers operators that knowingly target minors, and operators that continue to operate after a final blocking order.

The second proposal, submitted by Saavedra and Diego Ibáñez, bans the operation, offering, and advertising of online betting platforms. Any platform, server, or domain that accepts bets from Chilean customers will be considered to be operating in the country, wherever it is located. Polla Chilena de Beneficencia, Lotería de Concepción, authorized horse racing tracks, and land-based casinos are exempt from this ban.

Operators profiting from prohibited betting could face 541 days to five years in prison and fines of 200 to 1,000 UTM. Internet providers, app stores, and payment companies will also be required to block access. Ibáñez based his proposal on a Supreme Court ruling. According to him, the ruling declares this activity illegal and orders the closure of all online betting sites.