Chile Defends Tax Policy for Online Betting Firms

Chile’s Internal Revenue Service (SII) has clarified that its recent decision requiring online gambling operators to register and pay taxes should not be interpreted as approval or legalization of online betting activities within the country.

Speaking before the Senate’s Economy Committee, SII Director Jorge Trujillo responded to criticism surrounding Resolution No. 69, which established a framework allowing foreign online betting companies serving Chilean customers to comply with local tax obligations. The clarification comes despite previous rulings from Chile’s Supreme Court stating that online gambling platforms do not have legal authorization to operate in the country.

Trujillo explained that the measure was introduced solely to ensure tax collection from operators generating revenue through Chilean users. He emphasized that the tax authority’s role is to collect taxes owed on economic activities taking place in the country, regardless of the legal status of those activities.

According to the SII, online betting platforms are actively providing services to Chilean residents, making them subject to tax obligations under existing legislation. The agency maintains that collecting taxes does not alter the legal position of the operators or imply official recognition of their activities.

The issue is now under review by the Senate’s Economy Committee, which plans to hold additional sessions to examine whether the policy could be perceived as granting legitimacy to an industry that currently lacks a dedicated regulatory framework.

Representatives from the Superintendence of Gaming Casinos (SCJ) are expected to participate in future discussions, while lawmakers will also review the Supreme Court’s position regarding online gambling operations.

One of the most vocal critics has been committee chairman Senator Gastón Saavedra, who argues that the measure may create confusion about the legality of online betting. He stated that the policy could be interpreted as a form of legalization of an activity that remains unlawful under current legal interpretations.

Similar concerns have been raised in Chile’s Chamber of Deputies. Congressman Diego Ibáñez criticized the decision, arguing that requiring taxes from online betting operators effectively legitimizes businesses that have been deemed illegal by the courts.

The debate has intensified calls for a dedicated legislative framework governing online gambling in Chile. While the SII insists its objective is limited to tax collection, lawmakers continue to examine whether clearer laws are needed to address the growing presence of online betting platforms serving Chilean consumers.