Legislation
Lottery takes internet providers to court in Chile
By James - 6 May 2024
State owned lottery company Polla Chilena de Beneficencia filed five lawsuits against Chile’s largest internet providers Entel, Telefónica, WOM, GTD Manquehue and ClaroVTR because they have failed to block access online sports betting sites.
In September 2023 Chile’s highest court accepted an appeal from Polla Chilena de Beneficencia and ordered the blocking of online betting platforms. According to the Supreme Court decision issued at the time online operators were carrying out gambling activities within the borders of Chile “without legal authorization or from any national tax authority, which is why they are illegal according to national regulations.”
However, Polla Chilena de Beneficencia argues that these companies are still operating in the country, causing “a financial loss of at least US$200 million in the last two years as a result of this.”
The state-owned company argues that while the telecommunications companies did block the betting sites, this led the companies to change their website addresses by adding a letter, number, or symbol with the “clear intention of committing a fraud and continuing to operate,” as stated by the legal representative of the lottery.
“The facts described in this libel undoubtedly constitute illicit omissive conduct by not disconnecting, blocking and/or restricting the platforms and sites that promote and make available to the public within the national territory, illegal services,” the lawsuit states as published by the local newspaper La Segunda.
The filing before the court comes as Chile looks to be on the brink of approving its online gambling laws. In April the Senate Economics Committee unanimously approved in general the bill regulating the development of online betting platforms in Chile (Bulletin No. 14838-03). If approved Polla Chilena de Beneficencia will get a quick start out of the gate as it has a legal license that allows it to immediately start operating sports betting activities without the need for further administrative approvals once the bill is passed. Additionally, both Polla and the Concepción Lottery will be able to broaden their range of activities and apply for general licenses that will permit them to engage in a wider variety of betting and gambling related operations
