Chile Opens its Doors to Licensed and Regulated Online Gambling

More government officials are shifting focus to online gaming or, more specifically, the regulation thereof. Chile is among the latest to finally focus on implementing gaming regulations to regulate the market.

They created a new bill, which has finally been passed by the Senate, bringing big change to the industry. 

 Chilean Regulations

The first step of getting the bill through was completed in early December 2023 when the Chamber of Deputies passed the bill. From there, it went to the country Senate for the second step of the legislative process. And now Chile is one of the many Latin American countries that have opted for iGaming regulations. 

It’s a big step for the region seeking to regulate online gambling platforms, establish the necessary rules and have a firm grasp on the growing online gaming industry. With the bill already passed through the Chamber of Deputies, it's merely a matter of waiting to see if the bill gets passed by the Senate. 

Sources reveal that the bill passed with a large majority, with its aim being to create a competitive public gaming market dedicated to player protection. As soon as the Senate approves the bill, then the reigns will be taken by the Superintendence of Casino Games, the Commission of Financial Markets and the Internal Revenue Service. 

 Licensing Fees

With the new bill, operators will have to fork out around $74,189 in license fees. All licensees will have to take responsibility for the different fees that contribute to the Chilean Olympic Committee and the Chilean Paralympic Committee. 

The total fees are 2% of the company’s Gross Gaming Revenue (GGR). On top of that, there is expected to be a 20% tax on the GGR and a 1% GGR contribution to responsible gambling. 

The bill also seeks to clamp down on illegal gambling actions within the country. One of the many ways to restrict their access to locals will be blocking advertising with media outlets if you’re an unlicensed site. Internet providers will also be responsible for blocking access to any and all illegal gambling platforms, while banks are required to restrict transactions with unlicensed operators. 

 Long Time in the Works

Chile is finally taking steps toward regulating local online gameplay. The new bill has been long awaited and finally reared its head in 2022. At the current time, the only legal forms of gambling include lottery games and sports betting via the national lotteries. 

While there are some legal forms of gambling available, the majority of locals tend to seek entertainment via foreign operators. Leading to $130 million to$170 million in revenue passing on towards these sites and being lost to the locals. 

The Undersecretary of Finance, Alexander Webber,  stated that the new bill would feature clear rules regulating the local market and restricting unlicensed gaming action. This is to ensure that players are protected and operators are properly regulated. 

The process is almost complete, and now everyone is waiting in anticipation of seeing if the bill will get passed by the Senate.