Chile Advances Landmark Bill to Regulate and Tax Online Betting Platforms

The proposal will now move to a full Chamber vote, with President José Antonio Kast’s administration giving the legislation maximum urgency status in an effort to accelerate its approval.

Under the proposed framework, online betting operators would be required to pay VAT and corporate income tax in the same manner as other digital entertainment businesses. In addition, the bill introduces a special 20% corrective tax on gross gaming revenue, matching the rate already imposed on licensed land-based casinos in Chile. Authorities also plan to apply a further 1% levy on annual gross revenue, specifically earmarked for responsible gambling initiatives. Operators would be permitted to offset this contribution through verified investments in prevention and education programs related to gambling addiction. Traditional casinos would also be subject to the same additional charge.

Chile’s Finance Ministry has repeatedly argued that all online betting platforms currently operating in the country are technically illegal under existing legislation. Current laws prohibit gambling activities by default, with only a few exceptions, including horse racing, the Concepción Lottery, the state-run Polla Chilena, and licensed physical casino concessions.

Despite broad political support for regulation, the proposed tax structure has already raised concerns within the industry. Critics argue that when VAT is added to the new corrective tax and existing obligations, the total burden on operators could climb to nearly 38%. Some stakeholders fear such high taxation may discourage offshore operators from entering the regulated market or seeking legal licenses in Chile.

During committee discussions, Deputy Pier Karlezi suggested that revenue generated from online betting taxes should be redirected to municipalities rather than absorbed into central government funds. He highlighted the sector’s estimated $1.2 billion revenue potential and argued that local governments could benefit significantly from a dedicated allocation.

Meanwhile, Chile’s Gaming Superintendency estimates that more than 900 online betting platforms currently operate outside the law, accounting for over 80% of the country’s betting activity. Alongside the taxation bill, lawmakers are also considering separate legislation that would ban professional football players from appearing in betting advertisements — a proposal that has gained support across multiple political parties.