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In a significant legislative step, the Senate’s Finance Commission has unanimously endorsed a bill that aims to regulate online betting platforms in Chile, putting an end to the legal grey zone that has long surrounded this growing sector.
This approval marks a major milestone in what could become the first comprehensive legal framework for online gambling in Chile. But what does this really mean for operators, users, and the government—and why is it happening now?
Chile’s Online Betting Bill: A Long-Awaited Move Toward Legitimacy
The online betting bill—now moving through its second constitutional process—will soon be debated by the full Senate. If approved, it will return to the Economy and Finance committees for granular discussions and amendments.
This process may sound procedural, but the stakes are high. The proposed legislation represents Chile’s first serious attempt to create a structured and enforceable system for online betting, introducing clear tax obligations, licensing mechanisms, and player protections.
What’s in the Bill? Tax, Licensing, and Platform Accountability
Under the bill, all digital gambling services would be subject to Chile’s 19% value-added tax (VAT), with no carveouts for foreign-based companies. According to government projections, the effective tax burden on licensed platforms will not exceed 28%.
This includes:
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19% VAT on services
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Additional operating levies
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Revenue-sharing contributions, particularly for funding public initiatives and social programs
Beyond taxation, the bill introduces a licensing model for operators. This is more than just a formality—once in place, it will allow Chilean authorities to legally pursue and sanction unlicensed betting platforms.
Moreover, the bill outlines strict measures to curb underage gambling and prevent problematic gaming behavior. These include:
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Age-verification requirements
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Advertising restrictions, especially around vulnerable audiences
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Monitoring obligations for operators to flag suspicious activity
A Legal Turning Point for Chile’s Gambling Market
If approved, the bill would align Chile’s online betting ecosystem with its already-regulated land-based gaming sectors. That includes its casino industry, national lotteries, and the horseracing market—all of which have operated under a formal legal regime for years.
Why now? The explosive growth of digital gambling during and after the COVID-19 pandemic has pushed governments across Latin America to modernize outdated gaming laws. Chile is simply catching up to the reality of a sector that no longer knows borders.
At the same time, a regulated market offers clear advantages:
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Legal certainty for operators looking to invest and grow in Chile
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Better consumer protection through licensure and enforcement
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Higher public revenue via a taxation model that is both consistent and enforceable
What’s Next? Eyes on the Senate—and the Details
While the bill’s approval by the Finance Commission is encouraging, its journey is far from over. The full Senate must now weigh in, and amendments are expected during the final discussions at the Economy and Finance committees.
Issues that may arise include:
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How licensing fees will be calculated
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Whether certain online games will face additional restrictions
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How advertising and affiliate marketing will be policed
This is the moment when regulatory precision will matter most. Vague rules now could create enforcement headaches later.
Will Chile Become a Regulatory Role Model?
Countries across Latin America—from Brazil to Colombia—are watching closely. Chile’s approach could become a blueprint for others, especially if it strikes a balance between commercial viability and consumer safeguards.
But that depends on more than just what’s written in the bill. It depends on how it’s implemented, how consistently it’s enforced, and whether it keeps up with evolving gambling technologies.
Final Thoughts
The Senate’s recent move is a strong signal that Chile is ready to regulate online betting rather than ignore it. With broad political support and input from across society, the bill has the potential to transform Chile into one of Latin America’s most attractive markets for legitimate digital gambling operators.
But in the complex world of gaming law, the devil is always in the details. The next few weeks will be crucial in determining whether Chile’s regulatory bet pays off.
On a similar topic, you can access DLA Piper’s Gambling Laws of the World guide HERE and other articles on gambling law matters HERE.