Chile's government has introduced new amendments to its long-delayed online gambling bill, but disagreements over taxation, licensing fees and existing operators threaten to complicate its approval.

Chile has taken another step towards regulating its online gambling market after President José Antonio Kast's government submitted a new package of amendments to the Senate.

The proposals, presented to the Senate's Economic Committee on 26 October 2026, seek to establish a licensing and taxation framework for private online gambling operators.

The legislation was originally introduced in 2022 but has faced repeated delays, leaving Chile without a comprehensive regulatory framework for privately operated online betting platforms.

Under the latest proposals, operators would be able to apply for five-year licences, while new taxes, advertising restrictions and player protection measures would be introduced.

However, the amendments have also renewed disagreements between online gambling businesses, traditional casino operators and lawmakers.

One of the main disputes concerns whether companies that have previously operated without Chilean licences should be allowed to enter the regulated market under favourable transitional conditions.

Five-year licences and new gambling taxes

The government's amendments would establish a formal licensing system for online gambling operators.

Companies meeting the regulatory requirements would be eligible for five-year licences, allowing them to offer gambling services legally in Chile.

The proposed framework also introduces new taxation measures.

Online operators would be subject to 19% VAT on the margin between stakes and winnings, alongside a separate 3% levy.

The measures are intended to create a system in which licensed operators contribute tax revenue while operating under government supervision.

However, the proposed structure has raised questions about how online gambling businesses would be taxed compared with Chile's existing land-based casinos.

Traditional casino operators already pay sector-specific taxes, including contributions that support municipalities and local governments.

Representatives of the casino industry argue that applying different fiscal obligations to online platforms could create an uneven competitive environment.

The debate is particularly important because online operators generally have different cost structures from physical casinos, which must maintain premises, gaming equipment and employees.

The government will therefore need to balance the objective of attracting licensed online operators with concerns about competition between the two sectors.

Transitional licences become a major point of disagreement

One of the most controversial elements of the legislation concerns companies that have already been offering online gambling services to Chilean customers without domestic licences.

The proposed framework would allow these businesses to apply for transitional licences, enabling them to continue operating while completing technical certification and regulatory assessments.

Supporters of a transitional system may see it as a practical way to bring existing gambling activity into the regulated market.

Rather than forcing every platform to close immediately, the authorities could supervise operators during their transition towards full licensing.

However, the financial conditions attached to these temporary licences remain disputed.

Different proposals have suggested substantially different fees.

One option involves a monthly charge of 73,000 UTM, Chile's inflation-adjusted tax unit.

Another would require a payment of 3,000 UTM, equivalent to approximately $219,000, either as a one-off or periodic charge.

The difference between these proposals is considerable and could have a major impact on which operators can afford to enter the market.

Critics argue that the lower fee could effectively reward companies that previously operated outside the legal framework.

These businesses may have avoided taxes and regulatory obligations that licensed gambling companies were required to meet.

Allowing them to continue operating after paying a relatively modest fee could therefore create concerns about fair competition.

The final conditions for transitional licences remain unresolved.

Casino industry warns of unfair competition

Chile's licensed casino industry has been particularly vocal in its criticism of the proposed arrangements.

The Asociación de Casinos y Juegos (ACCJ), which represents land-based casino operators, has called for stronger measures to ensure that online gambling companies compete under fair conditions.

Cecilia Valdés, Executive President of the ACCJ, acknowledged that the government's amendments provide some useful regulatory clarification.

However, she argued that important differences remain between the obligations faced by traditional casinos and those proposed for online operators.

In an interview with Diario Financiero, Valdés warned about what she described as fundamental inequalities in the proposed system.

"We want competition, but it has to be real, fair and from serious companies," she said.

"That's the most important thing of all."

The association is particularly concerned that operators previously active without licences could be permitted to continue operating without meaningful consequences for their earlier activities.

According to the ACCJ, such an arrangement could disadvantage companies that have complied with Chile's existing gambling regulations.

Valdés also highlighted the different tax obligations faced by land-based casinos.

These businesses make contributions to local governments, creating a direct financial relationship between regulated casino activity and municipal funding.

The association argues that any new online gambling framework should account for these existing obligations.

Advertising bans and player protection measures

The government's amendments also include restrictions intended to protect consumers.

Under the proposed framework, gambling advertising and promotional bonuses would be prohibited.

This would significantly limit the marketing activities available to licensed online gambling operators.

Promotional bonuses are commonly used by gambling companies to attract new customers and encourage existing users to remain active.

Restricting these offers could change how operators compete in the Chilean market.

The legislation would also introduce default limits on player deposits and playing time.

These measures are intended to reduce the risks associated with excessive gambling by establishing restrictions on how much money customers can deposit and how long they can play.

The precise implementation of these controls will be important for operators developing their compliance systems.

Advertising restrictions could also influence the commercial attractiveness of the market.

Companies considering entering Chile would need to evaluate whether the potential revenue justifies the licensing fees, taxation and limitations on customer acquisition.

Some senators want a complete gambling ban

Although the government is moving towards a regulated licensing system, not all lawmakers support legalising private online gambling.

Earlier in October, Senators Diego Ibáñez and Gastón Saavedra introduced an alternative proposal that would prohibit online gambling entirely.

Their approach differs fundamentally from the government's plan to regulate and tax the sector.

A separate amendment from Senator Daniel Núñez would reserve online gambling activity for Chile's two existing lottery operators.

That proposal would prevent private gambling companies from entering the market under the same conditions envisioned by the government's amendments.

Núñez also proposed penalties for customers who knowingly use illegal gambling websites repeatedly within a 90-day period.

These competing proposals demonstrate that the debate extends beyond taxation and licensing fees.

Lawmakers remain divided over whether private online gambling should be permitted at all and, if so, which companies should be authorised to operate.

The differences could complicate negotiations as the legislation moves through the Senate.

Chile increases pressure on unlicensed operators

While lawmakers continue debating the future regulatory framework, Chilean authorities have already taken action against unlicensed online gambling platforms.

In September, telecommunications authorities instructed internet service providers to block 42 gambling-related URLs following court rulings.

The measures form part of efforts to restrict access to online gambling services operating outside the country's existing legal framework.

However, website blocking does not necessarily eliminate access to offshore gambling platforms.

Operators can potentially change domains or use alternative technical arrangements to reach customers.

This creates a challenge for countries attempting to control online gambling activity without a comprehensive licensing system.

A regulated market could provide authorities with additional tools to supervise operators, enforce consumer protection measures and collect taxes.

At the same time, the government must decide how to treat businesses that have already been active in Chile.

The proposed transitional licensing arrangements are therefore closely connected to the wider debate over illegal gambling enforcement.

Land-based casinos could enter online betting market

Another element of the proposed legislation would allow licensed land-based casinos to offer online betting services within their physical premises.

To do so, they would need to establish agreements with authorised online gambling operators.

This could create an additional commercial opportunity for Chile's existing casino businesses.

Rather than competing exclusively against online platforms, traditional operators could develop partnerships that combine physical gambling venues with digital betting services.

However, the arrangement would not necessarily resolve the industry's broader concerns about taxation and licensing.

Land-based operators would still face their existing financial obligations, while online gambling companies could operate under a different regulatory structure.

The commercial impact would depend on the final rules governing these partnerships.

Chile's online gambling future remains uncertain

After more than four years of legislative discussions, Chile appears to be making progress towards establishing a regulated online gambling market.

The government's latest amendments provide a clearer indication of the proposed licensing structure, taxation and consumer protection requirements.

However, several important questions remain unresolved.

The treatment of previously unlicensed operators is likely to remain one of the most contentious issues.

The casino industry's concerns about unequal taxation could also lead to further changes, while proposals to prohibit private online gambling entirely demonstrate the lack of political consensus.

For international gambling companies, Chile represents a potential new regulated market in Latin America.

However, the attractiveness of that opportunity will depend on the final licensing fees, tax obligations and advertising restrictions.

The next stage of discussions in the Senate will determine whether lawmakers can reach an agreement on these issues.

Until then, Chile's online gambling market remains caught between plans for legalisation, demands for stricter enforcement and concerns about fair competition.

Source: IGamingBusiness