Interactive
Chile – Chile puts forward motion to regulate online gaming
By Phil - 21 November 2013
Two Senators have put forward a new proposal which would regulate the online gaming industry in Chile. Senators Antonio Horvath and Ricardo Lagos Weber have put plans before the Finance Committee which aims to provide a new legal framework for the operation and management of online gaming across multiple platforms.
In response to the growing popularity of the industry, the project introduces regulatory standards, both for operators and players alike and seeks to introduce a number of player protection measures such as self exclusion and stricter control when it comes to underage gambling. The new law, now under consideration by the Finance Committee would, if approved, amend a total of eighteen provisions in Chile’s gaming laws so that current rules would be adapted in order to provide suitable control over the industry.
While introducing the bill the senators highlighted the fact that: “The situation created by the emergence of new technologies and remote channels, has led to the appearance in the gaming market of new operators for which the current legislation does not provide adequate regulatory control . . .” and added that ” this growing form of online gambling on offer has generated the need to establish clear a regulatory framework.”
Both Senators have in the past been instrumental in moving for changes to Chile’s gaming laws when it comes to online gaming. In June 2012, together they put forward legislation that would have granted a limited number of online licenses to casinos that were already licensed to operate in Chile.
Although online gambling is forbidden by Chile’s gambling laws of 1995, online gaming is becoming increasingly popular and is generally speaking tolerated by the government. While the exact size of the total online gaming market is unknown it is estimated that Chileans gamble over US$150m a year on online casinos. A regulated online gaming industry would undoubtedly generate significant additional gaming tax income as in 2012 land based casinos in Chile generated US$98.7m in a special gaming tax alone.
The additional tax revenue could be used to make up for land based casino revenues which have fallen sharply over recent months due to the rise of illegal gambling. In September the Chilean Gaming Control Board (SCJ) reported that gross gaming income generated by the 17 new casinos licenced in Chile stood at US$36.5m in September, a 29.6 per cent decrease when compared to the same month in 2012.
