Chile is advancing towards the legalization of online betting after the Senate provided general approval for a bill aimed at regulating the industry.
On August 15, the legislation received 27 votes in favor, three against, and five abstentions, paving the way for a thorough examination by the Senate’s Economic and Finance Committees.
The proposed law introduces a licensing framework for online betting services and implements enforcement measures targeting illegal operators. Additionally, it establishes protections for players, especially to prevent minors from accessing gambling offerings.
Chilean Government Advocates for Online Betting Regulation
Finance Minister Mario Marcel emphasized the importance of regulating the sector, given its swift expansion and lack of oversight: «The government aims to regulate activities occurring outside the legal framework and to combat tax evasion and oversight issues.» Proposed actions include blocking unauthorized websites, prohibiting bets from individuals who could affect sports outcomes, and introducing legal penalties for unlicensed operators.
Recent statistics indicate that over five million Chileans engaged with online betting platforms in 2024, resulting in more than $3.1 billion in unregulated revenue. The Ministry of Finance projects that a legal marketplace could generate approximately $84 billion annually, with licensed operators facing a tax rate of 20 percent, along with additional contributions earmarked for responsible gambling and sports development.
If approved, this law would establish a National Policy on Responsible Betting, imposing stricter advertising restrictions and ensuring equitable competition with regulated gambling sectors such as lotteries and horse racing. Licensed operators would need to register as Chilean entities and conduct operations under the oversight of a strengthened regulatory body, the Superintendency of Casinos, Betting, and Games of Chance.
Finance Undersecretary Hedi Berner stated to the Senators that the legislation «implements a National Policy for Responsible Gambling, restricts advertising, forbids bets from individuals with the potential to impact sports results, and allocates revenue to sports funding. It also creates access limitations and imposes criminal consequences for unauthorized platforms.»
Chile Aims to Integrate into Latin America’s Expanding Regulated Market
Chile’s initiative coincides with a growing trend of betting regulation across Latin America. Brazil established its legal market in January, attracting interest from global operators, while countries like Colombia, Peru, Argentina, and Mexico already have regulatory frameworks in place.
Despite this, Chile has fallen behind due to stringent laws. In 2023, the nation’s Supreme Court classified sports betting as a game of chance, effectively prohibiting it and contributing to the rise of a grey market.
The bill will now be subject to further analysis and amendments by Senate committees, with proposed changes expected by September 29. If it becomes law, it would signify a pivotal shift in Chile’s gambling landscape, transitioning from an unregulated and high-demand sector to a licensed, tax-generating, and accountable industry.
