Chile’s Online Gambling Bill Moves Forward

Chile’s long-running effort to regulate its online gambling market has moved forward this week, with the government submitting amendments to its flagship betting bill. However, progress is being accompanied by growing friction, as proposed licensing fees, transitional rules, and the tax treatment of operators have prompted concern among industry stakeholders and scrutiny from legislators.

The bill, identified as 14838-03, received approval in general terms from the Chilean Senate in August 2025, passing with 27 votes in favor, three against, and five abstentions. The Senate Finance Committee had earlier endorsed the general outline of the proposal unanimously, signaling broad cross-party support for establishing a regulated online betting and gaming market.

In May 2026, the government granted the bill its highest level of legislative urgency, accelerating its passage through the second constitutional reading in the Senate. Throughout 2026, the legislation has continued to advance, with the Economy Committee among the bodies reviewing its provisions.

Points of Contention

Despite the bill’s momentum, several unresolved issues have fueled debate:

• Tax structure. The proposal establishes a specific tax of 20% on gross gaming revenue for licensed iGaming operators, with an additional 1% allocated to responsible gambling initiatives. Separately, Chile’s tax authority (SII) has applied a 19% value-added tax to foreign digital betting platforms under Exempt Resolution No. 69, creating questions about the cumulative tax burden on operators.
• Licensing fees and transitional rules. Recently submitted amendments have drawn industry concern over proposed licensing costs and the framework governing the transition to the new regime, with stakeholders seeking clarity on how existing market participants will be treated.
• Compliance conditions. Senate proposals include measures such as biometric age verification, ownership disclosure requirements, and tighter operational rules, which legislators argue are necessary for player protection but which operators view as adding to compliance complexity.

Enforcement in a Regulatory Vacuum

While the bill remains pending, Chilean authorities have pursued enforcement against unlicensed activity. The SII has reported that 39 online betting platforms have registered to pay digital services VAT, while telecom providers have been instructed to block access to 42 unlicensed gambling websites. The tax authority has also directed payment processors to withhold VAT from unregistered platforms and has projected collecting more than $100 million from the digital services levy.

Chile’s Supreme Court has additionally ordered internet service providers to block illegal sports betting websites, reinforcing the state’s position that unlicensed online gambling is unlawful under current law.

Estimates of the size of Chile’s online gambling market vary. Some industry analyses have valued current annual activity at more than $150 million, while other projections anticipate the market could reach approximately $600 million by 2026, reflecting rapid growth driven largely by offshore operators currently serving Chilean consumers without local authorization.