Chile’s online gambling legislation has entered a more contentious phase after the government backed a regulated private market while senators submitted proposals that would either prohibit private operators or reserve online gambling for the country’s existing lotteries.
President José Antonio Kast’s government filed a 114-page package of amendments on October 26. The plan would introduce five-year licences for private operators, new taxes and player protection requirements.
More than 500 amendments were submitted before the deadline. The bill, originally introduced in 2022, is now undergoing its second constitutional review in the Senate after lawmakers approved it in August 2025 by 27 votes to three, with five abstentions.
Government Backs Licensed Private Market
Under the government’s proposal, operators could receive licences lasting five years and would pay an annual fee of 1,000 monthly tax units, currently equivalent to about $77,000.
The tax structure would include 19% VAT on the difference between stakes and winnings, together with an additional 3% gambling tax.
Advertising and promotional bonuses would be prohibited. The proposed framework would also introduce default deposit and playing-time limits.
Companies that have operated in Chile without a licence during the previous year would generally be prevented from applying unless they reach a transitional arrangement with authorities.
The Agrupación de iGaming Responsable welcomed movement toward regulation but objected to the proposed marketing restrictions.
“A modern regulatory framework must not confuse protection with prohibition,” the association said. “Advertising should be regulated, not eliminated.”
Its president Sandra Kemp had previously urged lawmakers to resolve the country’s uncertain legal position.
“The current legal vacuum creates risks and harm for minors, adult users, the state and platforms that are unable to operate and compete on equal terms in Chile. Failing to legislate is the worst of all the available options,” she said.
Senators Submit More Restrictive Alternatives
According to Diario Financiero, Senators Diego Ibáñez and Gastón Saavedra have proposed replacing the licensing model with a complete prohibition on private online gambling.
Their amendment states:
“It is prohibited to develop, operate, manage, offer, broker, or advertise, directly or indirectly, online gambling platforms that operate in Chile.”
A platform would be considered active in Chile whenever it accepts bets from users inside the country, regardless of where its servers or other infrastructure are located.
Operators already registered with Chile’s tax authority would receive up to 24 months to wind down their activities.
Violations could lead to prison terms ranging from six months to three years, together with fines.
A separate amendment from Senator Núñez would allow only Polla Chilena de Beneficencia and Lotería de Concepción to operate online gambling.
Those lottery operators would be limited to products they already offer. The proposal would also introduce permanent website blocking and higher fines for illegal operators and companies advertising unauthorized platforms.
Another provision would impose penalties on customers who knowingly use illegal gambling sites at least three times within 90 days.
Land-based casinos and horse racing would remain outside those proposed online restrictions.
Senate Review Comes Amid Enforcement Activity
Chile has already increased enforcement against unauthorized online operators.
In September, telecommunications regulator Subtel ordered internet providers to block 42 gambling websites following court decisions.
At the same time, 39 offshore betting sites have registered with Chile’s tax authorities under separate rules requiring foreign digital platforms to pay 19% VAT on transactions.
Kemp previously highlighted the contradiction between taxation and the absence of a dedicated online gambling framework.
“Ultimately, the state is applying a patch when we need a law,” she said.
The Senate’s Economy Committee will now consider the competing amendments. Finance Minister Jorge Quiroz was invited to explain the government’s position during an October 27 session.
The debate comes as other South American jurisdictions are also reconsidering online gambling rules. Brazil suspended licensed online betting on October 6, while Buenos Aires Province is examining proposals that include prohibition and tighter safeguards.
Chile’s lawmakers now face substantially different models for the sector. The government favors licensed private operators under new taxes and restrictions, while competing Senate proposals would either eliminate private online gambling or place it under the control of existing lottery operators.