SBC News Voice of the Sports Betting Industry
President Gabriel Boric of Chile has authorised amendments to Supreme Decree 1,722 concerning the management of municipal casino contracts.
New articles added to the Supreme Decree will allow Chilean gambling groups to terminate their licences for municipal casino contracts without facing penalties or the payment of ‘guarantee bonds’.
The resolution was introduced by Minister of Finance, Mario Marcel Cullell, who sought to prevent further gambling-related conflicts from burdening Chile’s courts of justice. Prior to approving the resolution, Minister Cullell acknowledged that managing multiple municipal casino contracts had become unfeasible due to the solvency issues faced by domestic gambling groups still recovering from the aftermath of COVID-19.
As a result, the Ministry of Finance authorised the inclusion of Article 46 in the Supreme Decree, allowing casino contracts to be terminated “without prejudice.” Cullell stated: “Once the resignation of contracts is accepted, the rapid start of a new bidding process for the granting of the respective operating permit will be enabled.”
Article 46 eliminates the mandatory 120-day period previously required for licence termination requests to be reviewed by the Superintendency of Gambling Casinos (SCJ), which was recognised as a significant obstacle to resolutions.
Chilean gambling firms can renounce their casino permits either before “SCJ certification enabling operations,” with three years’ advance notice while continuing to fulfil obligations, or under exemptions for force majeure or unforeseen material/legal changes.
Termination fee charges may still be applied by the SCJ if it determines that the operator has made material changes to properties and venues. Operators must resolve all outstanding obligations with third parties before the renunciation of contracts can be accepted.
Looking ahead, the Ministry of Finance plans to develop a new bidding process for municipal casino licences. The Ministry has pledged to shorten the three-year notice period if a new operator is ready to take over, with financial adjustments covered by the resigning company.
The resolution has indirectly benefited Enjoy SA, the struggling Chilean casino group, which will avoid paying compensation on its frozen licences for Coquimbo, Viña del Mar, and Pucón.
Long road ahead for Federal Gambling Bill
In broader developments, attention turns to Chile in 2025 to see whether the government can successfully introduce a new regulatory framework for land-based and online gambling activities.
In 2023, an incomplete Federal Gambling Bill was submitted to the Senate, but it made no progress in 2024 as existing monopolies, including Lotería Concepción, Polla Chilena, and Teletrak, inundated Chilean courts with legal challenges against the proposed measures.
The 2023 framework proposed an ‘industry-specific’ 20% tax on gross online gambling income. Additionally, operators would contribute 2% of their revenue to Chilean sports and allocate 1% to approved responsible gambling programmes. The Ministry recommended that online gambling licensees be subject to an annual fee of approximately 1,000 UTM (US$73,000).
Progress has been hindered by the ongoing legal battle between the Chilean Football Federation (ANFP) and the Ministry of Justice over the legality of online gambling sponsorships. This matter remains unresolved, as the ANFP has not consented to the terms of Chile’s Sports Integrity Bill.
