Chile is on the verge of legalizing online gaming, with the Chamber of Deputies passing a bill that will regulate the industry. The bill now awaits approval from the Senate in order to be finalized.
The majority of the Chamber voted in favor of the bill, aiming to create a competitive online gaming market while prioritizing safe and secure gaming. If approved, the bill will also impact other regulatory bodies in Chile, including the Superintendence of Casino Games (SCJ), the Commission for the Financial Market (CMF), and the Internal Revenue Service (SII).
The bill also seeks to establish the new National Policy on Responsible Gambling, involving various members of SCJ, the Ministry of Finance, and the Ministry of Health. Additionally, the license for operating in Chile will cost CLP64.2 million, or $74.189 for specific online betting platforms. All online gaming activities will be taxed with VAT, enabling companies to claim back tax credits for expenditures such as advertising services and software.
In terms of revenue and taxes, operators will be required to contribute 2% of their gross gaming revenue to fund sports, with the funds split between the National Sports Institute, the Chilean Olympic Committee, and the Chilean Paralympic Committee. Operators will also have to pay 20% in taxes to address various externalities, similar to the amount paid by land-based casinos. Additionally, operators will contribute 1% of their annual gross revenue to fund responsible gaming campaigns.
In addressing illegal operations, the bill introduces measures to block illegal gambling activities, including allowing advertising companies to promote only legal operators and preventing illegal operators from opening bank accounts. Internet service providers will also be obligated to prohibit access to illegal platforms and apps.
The Chilean Ministry of Finance initiated discussions about online gaming legalization in February 2021, with the first online gaming bill released in March 2022. The industry is now awaiting the final approval from the Senate to proceed with the legalization of online gaming in Chile.