The Senate Finance Committee of Chile unanimously approved the overall outline of a bill to regulate web-based betting sites. This is a significant move toward modernizing the country’s gambling industry. The bill benchmarks online gambling against licensed industries such as land-based casinos and horse racing. It marks a milestone in Chile’s effort to bring order to its fast-growing online gambling sector with a formal framework.
On its second constitutional reading, the Senate will further debate the measure. It will then send the bill back to the Economy and Finance Committees for a line-by-line examination. This two-step approach allows the bill to undergo thorough inspection. It also gives legislators sufficient time to submit amendments in later stages.
This bill aims not only to legalize the internet gambling sector but also to strengthen public oversight. It seeks to institute responsible gaming principles and preserve competitive market dynamics. With sweeping feedback from leading stakeholders right across the industry, the exercise has been overwhelmingly consultative. Hearings in previous months included contributors from national lotteries, casino associations, internet platform operators, and horse racing syndicates. They also featured child protection activists.
One of the most remarkable aspects of the law in question is its tax regime. Chile’s Undersecretary of Finance, Heide Berner, says all internet gambling operations will be subject to the country’s standard 19% Value Added Tax (VAT). To ensure a level playing field between local and foreign firms, the government will also tax operators based outside Chile.
Additional to VAT, the total tax burden on operators under the new model is to be below 28%, which is in comparison with other similar markets in the world. The bill also establishes a specific levy requirement for internet gambling operators to contribute 2% of their GGR or Gross Gaming Revenue to sport development, as is the case with the current regime for land-based operators.
