Chile Proposes Online Gambling Licensing Framework

Chile’s government has presented a proposal to regulate the country’s gambling market, setting out a licensing system for online operators. However, the plan faces opposition from senators backing alternative approaches, ranging from banning private online gambling companies to reserving the market for the country’s existing lottery operators.

On Monday, 26 October, the government of President José Antonio Kast submitted a 114-page amendment proposing five-year licences for gambling operators. The Senate is also considering two competing amendments introduced earlier in October.

According to Chilean media outlet Diario Financiero, the government’s proposal would set an annual licence fee of 1,000 tax units, equivalent to approximately $77,000 at current rates. Licensed operators would also face a 3% gambling tax in addition to value-added tax (VAT). The proposed rules would prohibit gambling advertising and promotional offers.

The plan would also restrict eligibility for companies that operated in the Chilean market during the previous year, unless they enter a transitional arrangement with the authorities.

On 27 October, the Agrupación de iGaming Responsable (AGR) welcomed the government’s proposed regulatory framework but raised concerns about the planned advertising and promotional restrictions. The association warned that eliminating these activities could push consumers towards unlicensed gambling platforms.

The AGR stated: “A modern regulatory framework must not confuse protection with prohibition. Advertising should be regulated, not eliminated.”

Meanwhile, the Senate is examining two alternative proposals that would significantly limit private-sector participation in online gambling.

Senators Diego Ibáñez and Gastón Saavedra support an amendment calling for a complete ban on private companies offering online gambling services. Under their proposal, registered operators would have up to 24 months to cease their activities.

A separate amendment, introduced by Senator Paulina Núñez, would reserve online gambling exclusively for the country’s two existing lottery operators: Polla Chilena de Beneficencia and Lotería de Concepción. Both would be permitted to continue offering their existing services.

The competing proposals also include measures targeting illegal gambling operators, including criminal penalties and permanent website blocking.

The Senate’s Economy Committee continues to review the amendments as lawmakers consider the future structure of Chile’s gambling market.