Legislation
Chile – Senate economic commission resumes debate on online gambling bill
By James - 11 March 2024
The Senate’s Economic Commission has resumed the analysis of online gambling regulation in Chile. After the legislative recess in February, parliament returned to normal activities and received presentations from the Association of Online Betting Platforms, the Superintendence of Casinos of Games (SCJ), and Polla Chilena de Beneficencia.
Lawyer Carlos Baeza, advisor to Betsson, Betano, BetWarrior, Coolbet, Latamwin and 1XBET warned in a document presented to the commission said: “There is no provision in Chilean legal system that prevents the development of online betting.”
The document went on to say that “73 per cent of OECD countries have regulated the online gambling industry,” and called for online gambling in Chile to move in the same direction.
“The tax burden and player channelling relationship are key factors in formulating regulatory policies in the gambling industry. Reducing the tax burden is an effective strategy to increase channelling, strengthen regulation, protect user interests, and increase tax revenue,” the document concluded.
However the SCJ warned lawmakers that “without explicit legal regulation, the commercial exploitation of gambling in Chile is illegal, and furthermore constitutes a crime.” The SJC argued that the only entities authorized to offer gaming and betting products are licensed casinos, and lotteries Polla Chilena de Beneficencia S.A., LoterÃa de Concepción S.A., and racecourses.
In addition, Polla Chilena de Beneficencia questioned whether it was right that it should be “included as another actor” within the ecosystem outlined in the bill, obliging it to apply for a license in the same way international operators would have to do.
During the session, Senator Loreto Carvajal, who is presiding over the commission, requested authorities to specify the “destination of the resources that would be generated” with the regulation of this activity.
Senator Karim Bianchi warned about the difficulty of legislating and regulating online gambling platforms and proposed “establishing a determined number of regulated casinos” in the industry. Senator José Miguel Durana meanwhile highlighted the need to create a responsible gambling policy within the framework of this initiative, emphasizing the importance of a national strategy to address gambling addiction associated with online casinos. He also requested a list of countries that have chosen to establish operating restrictions for companies operating in unregulated markets. He also urged an analysis of regulations implemented in other countries to obtain a “description of their regulatory design.”
In January The Undersecretary of Finance Heidi Berner and the head of the Superintendent of Casino Games (SJC) Vivien Villagrán presented Chile’s online gambling bill to the Senate’s Economic Committee. The bill, which was approved in the first stage by the Chamber of Deputies in December, aims to create a competitive market. It also seeks to safeguard public trust, protect the health and safety of players, ensure transparency in the origin and destination of resources obtained from gambling and raise revenue for state coffers and sports.
