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Chile’s Financial Market Commission (CMF) has proposed rules that would prevent payment operators from providing services to unauthorised online gambling platforms, adding a potential new barrier to offshore betting while Congress continues to debate a licensing framework for the sector.
According to La Tercera, the proposal would also prevent payment operators from processing payouts from unauthorised online gambling platforms.
The proposal, published for consultation in August, updates the list of complementary activities that payment card operators are permitted to conduct. It would limit authorisation to services provided to entities operating in accordance with Chilean law and holding any required permits, licences or concessions.
It would also exclude services to foreign activities that would be illegal if carried out in Chile.
The CMF’s president, Catherine Tornel, said the provision would apply to online casinos because unauthorised online gambling is currently considered illegal in Chile. She said payment operators would therefore be unable to provide services to platforms that do not have a business recognised as legally operating in the country.
Asked whether payouts would also be covered, Tornel said that, if the rule were approved in its current form, payment operators would not be able to process payouts for activities considered illegal in Chile.
The proposal comes as Chile continues to debate legislation that would establish a regulated online betting market.
The Supreme Court has previously ruled that unauthorised online betting is illegal, while the government has also enabled foreign online platforms to register for VAT on transactions with Chilean customers. The proposed CMF rules would therefore strengthen enforcement through the payments system while the broader licensing framework remains unresolved.
Earlier this month Chile’s Telecommunications Subsecretariat (Subtel) ordered six internet service providers to block 42 online betting and gambling URLs within 48 hours, implementing a court-backed process for the continuing removal of unauthorised gambling sites.
