Internet service providers in Chile must completely block traffic to unlicensed gaming sites. The direct order comes from the Supreme Court and applies to the country’s largest telecommunications and internet providers: Claro, Entel, Telefónica, WOM, and VTR.
The decision upheld an appeal by Lotería Concepción, after the Court of Appeals initially rejected it. This was after operators denied the obligation to restrict access to online gambling sites.
Since 2023, Chile’s judiciary has become a battleground for municipal gaming companies. This applies to companies like Lotería Concepción, Polla Chilena (soccer betting), and Teletrak (horse racing), which are determined to prevent foreign remote operators from reaching local audiences.
Telecommunications companies received a list of domains to block, including high-profile brands such as Betano, Coolbet, JugaBet, Rojabet, and Betsson. The operators had previously argued for neutrality, pointing out that online gaming remains unregulated in Chile—an issue debated by political chambers since 2023.
However, the Supreme Court noted that the principle of net neutrality only protects legal content. Thus, it ruled that the companies’ refusal to block the sites was “unlawful and arbitrary.” The Court emphasized: “Although there is no direct prohibition of online gambling, it is only legal if expressly licensed.”
Bill stalled
In Chile, legal battles are likely to continue, as the judiciary is tired of the Senate and government’s inaction in resolving the pending terms of a new gaming law in the country.
Currently, Chile lacks a legal framework for online gaming. Since 2022, efforts have been underway to establish a regulatory framework that would license foreign companies already active in the market. However, each year, Chile stumbles on the guidelines needed to finalize the bill.
In 2023, significant progress was made, with the approval of articles on criminal determinations, taxation, and sports integrity. However, the Senate Economic Committee rejected the measure, considering the bill unfinished.
The Committee argued that new resolutions were needed on IT licensing authorizations and advertising rules. An additional obstacle arose when the Committee ruled that the municipal operators—Lotería Concepción, Polla Chilena, and Teletrak—should receive compensation for the privileges lost after the launch of the regulated market.
To further complicate matters, a high-profile legal dispute arose between the Chilean Football Federation (ANFP) and the Ministry of Justice over football sponsorships that clubs had entered into without formal legislation.
Although the Senate has restarted deliberations to complete the Gaming Bill in 2025, it must once again confront and resolve these unfinished business—with entrenched playing fields needing to be reconciled before any market launch can occur.
Regulatory process remains slow
Chilean lawmakers are slowly moving toward bringing some form of order and determination to the gaming sector. The bill, currently under consideration in the Senate, seeks to regulate an online gaming industry that generates over US$150 million annually.
With the proposed structure, the Treasury expects to raise 84 billion pesos (approximately US$90 million) in tax revenue. The plan establishes a specific 20% tax on gross gaming revenue (GGR) for licensed operators, applicable in addition to VAT. The government projects a total tax burden of just under 28%, placing Chile in the middle range compared to international markets.
The bill also introduces specific social contributions: a 1% tax for responsible gaming initiatives and a 2% tax on sports betting revenue to support the development of Chilean sports.
The bill promises to protect players, especially young Chileans, from harm, require transparency in the flow of funds, and strengthen consumer confidence by certifying the randomness of games. A licensing system would also foster competition among authorized operators while channeling illegal players into the regulated market.
Authorities have been blunt about the scale of the problem. Treasury Minister Mário Marcel warns that since 2022, the sector has been growing outside the law, “without paying taxes, without complying with regulations, and at risk of excess.”
However, remote operators have stood firm against continued delays in the legislation, emphasizing that they respected the scope of the bill and adopted best practices in collaboration with stakeholders such as the ANFP, even when Chile had no legal framework for online gaming.
Bill on gaming under analysis
Treasury Undersecretary Heidi Berner was blunt. According to her, the opacity of ownership and funds leaves the market open to money laundering and illicit financing.
The bill also provides for institutional reform. The Superintendence of Casinos and Games (SCJ) would be redesigned as the Superintendence of Casinos, Betting, and Gambling, with expanded powers to supervise and sanction operators.
While the boundaries now appear to be set, the bill’s passage will likely be closely scrutinized by municipal gaming operators seeking damages and the preservation of their privileges—with the judiciary still expected to play a decisive role.
Whether the law will survive Chile’s turbulent politics is another question. But the Supreme Court’s ruling against unlicensed websites has only increased pressure on parliament to act.