The Economy Committee of the Chilean Senate has agreed to create a technical panel with the Executive branch to discuss possible changes to the bill seeking to regulate online betting.
The decision comes after a ruling by the Internal Revenue Service (SII) issued on June 2, which allows foreign betting platforms operating without a registered address in Chile to meet their tax obligations.
The SII’s measure raised questions among senators, who consider it contradictory and incoherent to charge taxes to these companies if there is no regulation that expressly authorizes the activity.
The acting Superintendent of Gaming Casinos, Eduardo Cáceres, noted that the current regulatory framework only permits the operation of games of chance in physical casinos.
He also explained that since 2018 the Superintendency has filed 123 complaints with the public prosecutor’s office related to online betting sites. Among the most frequent complaints are problems collecting winnings, irregularities in the operation of the games, and access to these platforms by minors.
He emphasized that the SCJ’s position favors “moving forward with the regulation of online gambling.” He stated: “It will allow us to safeguard public trust, increase tax revenue, and address other much more critical issues related to making transparent the origins and destinations of the funds obtained through this activity, as well as combating money laundering.”
The bill, initiated during the administration of former president Sebastián Piñera, seeks to create a legal framework for online betting, including operating requirements, oversight mechanisms, player protection, and restrictions to prevent access by minors.
The Government expects to collect 84 billion Chilean pesos annually once the regulation is fully in effect.
According to the bill, online platforms will pay a general license fee of 1,000 UTM per year (71,506,000 Chilean pesos) to operate. In addition, 2% of their gross revenue will be allocated to sports. Of that percentage, 1/3 will go to the National Sports Institute, which will distribute it among various sports federations. The second third will go to the Chilean Olympic Committee (COCH), while the remaining third will be allocated to the Chilean Paralympic Committee.
In terms of general and specific taxes, the bill aligns the rules with those applied to casinos. It includes income tax for the operating company and VAT, since this is considered an entertainment service — in this case, digital.
A specific tax of 20% on gross revenue is also set. Along with this, there is an increase in the rate to 1% as a contribution to responsible gambling. This comes with the possibility of deducting expenses if actions are allocated toward that purpose.
Regarding oversight tools, new powers are granted to the SII and the Superintendency of Casinos and Games, which will be renamed the “Superintendency of Casinos, Betting and Games of Chance.”