The Chilean government is making significant progress on a legislative initiative.
On Tuesday, the 12th, the Chamber of Deputies approved and forwarded to the Senate a bill aimed at regulating online betting and gaming platforms.
Chilean government’s objective with online betting and gaming legislation
The main objectives include fostering a competitive market in the face of legal gambling options existing in the country and ensuring the safety and well-being of players.
Furthermore, it is an attempt to bring more transparency to the market and capture tax revenue that is currently being sent abroad.
The initiative aims to grant licenses to online gaming operators, with a strong emphasis on adherence to requirements to prevent crimes, money laundering and the protection of users, especially minors.
This news is positive for operators who were recently forced to halt their operations in the country.
Supervision of online games in Chile
The new regulations will require the disclosure of their final beneficiaries, increasing transparency in the origins and destinations of funds and avoiding conflicts of interest.
The bill outlines a regulatory framework that balances incentives for compliance and imposes severe penalties on illegal operators.
The Casino Games Superintendence (SCJ) will be given additional powers to oversee the growing sector. In addition, the Financial Market Commission, the IRS and the Financial Analysis Unit will also play broader roles.
Responsible policy for online gaming in Chile
The country intends to develop a responsible national online betting policy, with the participation of the SCJ, the Ministries of Finance and Health. This policy aims to guarantee responsible gambling practices, prevent gambling-related problems and establish guidelines for the advertising and promotion of operators .
Specific regulations will protect children and teenagers, prohibiting them from opening or maintaining accounts without proper identification.
Betting operators must not promote participation and are prohibited from using targeted advertising or promotions. The use of payment instruments in their names will be completely prohibited.
People will have the option to self-exclude and set gambling patterns, triggering alerts for violations. The superintendency may also issue alerts for common risk patterns as part of its regulatory functions.
Furthermore, the legislation prohibits betting on people with an impact on results, such as players, athletes and organizational leaders. It also addresses the manipulation of betting objects to influence uncertainty, which means a ban on betting on yellow or red cards in football and similar actions.
New tax plan
Chile’s Chamber of Deputies agreed that online gambling fall under the category of “digital entertainment service”. Therefore, online operators must pay VAT at a rate of 20%, just like their physical equivalents.
However, there will be additional tax requirements. The bill introduces a 2% annual tax on gross betting revenue for authorized platforms, with proceeds benefiting the National Sports Institute.
The distribution of funds includes sports federations, the Olympic Committee and the Paralympic Committee.
This is in addition to another 1% tax rate increase. The legislation added this increase to cover costs associated with creating and maintaining Chile’s responsible gaming initiatives.
The Chamber of Deputies quickly approved the legislation, indicating the urgency with which Chile wants to move forward with the project. However, as the bill moves through the Senate, its progress may slow, especially due to the holiday period.
