The Chilean Ministry of Finance will present bills to modernize the betting and casino industry. One of them intends to regulate the online betting sector and will be in the hands of lawmakers this first semester. Another proposal refers to the period of construction of the casinos and provides for the extension of the current licenses.
The government intends to collect taxes from online companies that now operate in Chile, but do not pay taxes. The new measure aims to regulate online sports betting, online casino games and other modalities.
The objective is “to generate a competitive market and protect the health and safety of players”, according to the Treasury. In addition to “increasing the collection of taxes and making transparent the origin and destination of the resources obtained through these platforms”.
The government considers gambling to be a relevant sector, both for contributing to the municipalities and regions of Chile and for the development of tourism. In 2019, casinos generated gross revenue of $ 670 million and paid $ 210 million in taxes.
Approximately $ 80 million has been distributed directly between the municipalities and regional governments where the casinos are located. But the pandemic and the new trends in the sector demand new standards that guarantee the development of the market and higher tax collection with competitive tenders.
Chilean government wants to modernize casino segment
In this context, the Treasury’s plan is also to modernize the casino segment, as yet another way to overcome the crisis. And “project this industry into the future, ensuring its contribution to the country and regions”.
The project has several essential points. The first factor is to modernize the industry and make the operation more flexible. Thus, in the first half of the year, the government wants to present a proposal aimed at casinos to adapt them to new world trends, in addition to promoting responsible gambling.
The project will include access to a one-year extension of the current operating licenses for casinos governed by Law No. 19,995. Operators that agree to the extension must pay the State, at least once, a tax that compensates for the reduction in Treasury revenues.
In addition, the project proposes the extension of construction and operation deadlines. To this end, the Treasury expects to modify Decree 1722 of 2015, which regulates the process for granting operating authorizations. Thus, it will allow a six-month extension for operators with a 2018 license to build the projects.
Chilean segment disapproves of Chilean government project
However, the Chilean sector is dissatisfied with the proposed regulatory model. The president of the Chilean Casino Association, Rodrigo Guíñez, told the local press that it is “inapplicable how the government granted Enjoy a new ransom the day after having to pay about $ 100 million for violations”.
“This confirms that the complaints from the main groups of investors who a few months ago publicly warned about the government’s favoritism towards Enjoy were true,” he said.
Guíñez added: “All of these decisions are more serious if we take into account that the rest of the casinos have been asking for almost a year and without success that the government respect the rules of the 2005 law game to renew the operating licenses”.
