SBC News Voice of the Sports Betting Industry
The Senate of Chile will review the text and framework of a new Federal Gambling Bill (035/2022), aimed at overhauling the Andean nation’s longstanding gambling laws.
Despite unresolved conflicts, this week Chile’s Chamber of Deputies approved the draft legislation by a majority of 97 votes in favor and 28 against.
The Bill will thus be presented to the Senate for federal evaluation. Ministers in the upper house will determine whether the Bill meets its goal of “establishing a competitive online gambling marketplace, generating increased tax income for the government, and protecting national consumers.”
By the end of 2022, the government had instructed relevant departments to submit resolutions needed to modernize Chile’s gambling laws, which had sustained a monopoly structure limited to three businesses: Loteria Concepción, Polla Chilena (football pools), and Teletrak Chile (pari-mutuel horse racing).
The Ministry of Finance put forth its resolution to impose an ‘industry-specific‘ 20% tax on gross online gambling income. Moreover, operators will contribute 2% of their revenue to Chilean sports and allocate 1% to approved responsible gambling programs.
The Ministry recommended that online gambling licensees be subject to an annual fee of approximately 1000 UTM (US$73,000). An evaluation by Chile’s Commission for Financial Markets (CMF) suggested that these measures could provide an additional $50 million for sports and public services.
Following this, the Economic Commission of the Chamber of Deputies conducted a legislative review and introduced 15 new articles to establish the legal framework for online gambling and sports betting—areas previously undefined in Chile’s constitution.
However, the Bill passed by the Chamber of Deputies still has limitations in several technical aspects and regulatory requirements necessary for the market’s introduction.
In September, the Supreme Court reaffirmed its stance by upholding a legal challenge from the state-owned Polla Chilena, which insisted that Chilean authorities recognize and prosecute online gambling as an illegal activity until its regulatory status is clarified.
Consequently, the Supreme Court mandated a 12-month cooling-off period for grey market operators in the Bill, aiming to shield state-owned entities during the regulatory shift.
This decision further intensified the ongoing debate involving the Chilean Football Federation (ANFP) and the Ministry of Justice concerning the legality of online gambling sponsorships, a matter that remains unresolved as the ANFP has not consented to the terms of Chile’s Sports Integrity Bill.
