Update on Chile's gambling regulation

As you may already be aware of, there have been interesting developments regarding online gambling and online casinos in Chile. Here's a snapshot of the current landscape.

Pursuant to Chilean Law all gambling is prohibited, with the exception of specific statutes that permit commercial exploitation in cases like Lotería de Concepción, Polla Chilena de Beneficencia, Racetracks, and various local operators. This stance includes online casinos, which are prohibited under Chilean law.

Until recently, foreign-based online casinos could operate within Chile's borders, evading the reach of Chilean law by running their operations and servers in other countries. However, in the past few years, the Gambling Institution, known as the "Superintendencia de Casinos de Juegos," along with local gambling operators, have launched a determined campaign to oust these foreign online casinos from the Chilean market. They have initiated legal proceedings and remedies in the Appellate Courts and the Supreme Court, including legal actions against internet service providers in Chile like VTR, Entel, Claro GTD, and Movistar, demanding that they block access to online casino websites for Chilean customers.

The turning point came in early September 2023 when the Supreme Court ruled in favor of the local gambling operators' claims, compelling internet providers to comply with the court's decision and block access to online casino websites for Chilean users.

Adding to the complex web of developments, a bill has been under consideration in the Deputies Chamber of Chile (Cámara de Diputados) since March 2022. Furthermore, in September 2023, the government, represented by the Undersecretariat of Finance, provided indications to the Chamber concerning taxes for online gaming and gambling, intensifying the ongoing discussion.

One silver lining came on October 30th, The Prosecutors Office opted to archive the complaints lodged by Chilean casinos and the Polla Chilena de Beneficencia against online betting platforms such as Betano, Betsson, BetWarrior, Coolbet, and Latamwin. This decision signaled that criminal actions against these platforms would not be pursued.

Presently, a noticeable divergence of opinions is evident within the government. While the Ministry of Justice is inclined towards eliminating online gambling activities, the Ministry of Finance is pushing for regulations to govern them.

‍As of the present moment, the landscape appears to be relatively stable, with indications that the Ministry of Finance's position is gaining the upper hand.