Chile continues to witness legal battles, swamping the passage of launching a federal gambling regime, as sought by the government.
Last week, Polla Chilena filed a new Supreme Court lawsuit against Chile’s leading telecom firms for providing online access to unlicensed online gambling operators.
Operating as one of Chile’s municipal gambling operators, Polla Chilena believes that it is owed CLP 2.70bn (circa €250m) in compensation and ‘consequential damages’ from Chile’s leading telecom firms.
The lawsuit has been filed against the telecom and Internet service providers (ISPs) of Entel, Telefónica, GTD Manquehue, Claro, VTR, and Wom.
Polla Chilena justified its demands for compensation due to the Supreme Court’s ruling at the close of 2023, which deemed that “online gambling should be viewed as illegal” until the government “settles on a regulatory status for its business activities.”
The ruling led to the Supreme Court ordering Chilean ISPs to block all internet access to unlicensed online gambling operators.
Filing its new lawsuit, Polla Chilena claims: “The inaction of telecommunications companies not only contravened Chilean legislation, but also Supreme Court rulings that ordered the blocking of illegal betting sites.”
Telecom and ISP provider WOM responded to the lawsuit, stating that Polla Chilena had tried “six times to claim an unjust enrichment” from its business.
Chilean ISPs state that prior to the ruling, at no point had Chilean authorities ordered a blackout of online gambling operators, as the Senate continues its review of the Federal Gambling Bill (035/2022).
The Chilean Senate has resumed efforts to establish a new federal framework for gambling. This follows the inconclusive developments of 2023, where key departments were unable to agree on a bill to implement new laws and market standards.
Polla Chilena is accused of blocking Chile’s legal courts to continue the delay of authorising a new federal gambling regime.
In 2023, Chile planned to overhaul its existing gambling regime by legalising online gambling and ending the monopoly of the three municipal businesses: Loteria Concepción, Polla Chilena (football pools), and Teletrak Chile (pari-mutuel horse racing).
Progress on the new Federal Gambling Bill included lawmakers agreeing on articles to update Chile’s judicial laws for online gambling. Additionally, the Ministry of Finance proposed a 20% tax on gross income specific to the industry and a licensing framework for both foreign and domestic businesses.
As the debate on finalising Chile’s new gambling regime resumes, monopoly operators have demanded that the government maintain certain protections and exclusivities in the revised laws.
According to SBC Noticias, “Polla Chilena de Beneficencia expressed concerns about being treated the same as other international operators in the proposed bill, emphasising its unique structure and ownership.”