Chile Senate Committee Backs Online Gambling Ban

Chile’s Senate Economy Committee has approved amendments that would prohibit private online gambling, putting the government’s proposed licensing framework in doubt.

The committee voted three to one, with one abstention, in favour of two proposals on November 9. Both would prevent private operators from offering online betting, although they differ in penalties and enforcement measures.

Committee chair Gastón Saavedra said the texts will be merged at the next session. The legislation must then pass through the Senate Finance Committee before returning to the full Senate.

The decision shifts the bill away from the regulatory model proposed by President José Antonio Kast’s government in October. That plan included five-year licences, new taxes and player protection measures.

Amendments Would Block Private Operators

One proposal, submitted by Senate President Paulina Núñez and María José Gatica, would rule out a private licensing market and allow courts to permanently block illegal betting websites.

It would also restrict payment services and advertising linked to unauthorized gambling. According to CNN Chile,  in aggravated cases, penalties could reach 15 years in prison and fines of up to 10,000 UTM, including where operators deliberately target minors or continue operating after a final blocking order.

A second proposal, submitted by Saavedra and Diego Ibáñez, would prohibit the operation, offering and advertising of online betting platforms in Chile.

Under that version, any platform accepting bets from Chilean customers would be considered to be operating in the country, regardless of where its servers or domain are based.

Polla Chilena de Beneficencia, Lotería de Concepción, authorized racetracks and land-based casinos would be exempt.

Operators profiting from prohibited online betting could face prison terms from 541 days to five years and fines of 200 to 1,000 UTM. Internet providers, app stores and payment companies would also have blocking obligations.

Ibáñez defended the proposal by referring to a Supreme Court ruling.

“Why do I think we need to open the political debate?” he asked. The court, he added, “declares this business illegal and orders all online betting houses to be closed”.

Government Regulation Plan Faces Setback

The government’s proposed framework would have created five-year licences and imposed 19% VAT on the difference between bets and prizes paid, alongside an additional 3% levy.

Deputy Finance Minister Sebastián Vallebona criticised the committee’s decision.

“We are losing the opportunity to debate regulation that focuses on protecting families, preventing minors from accessing gambling and preventing an increase in gambling addiction,” he said.

Independent Senator Matías Walker also opposed prohibition.

“I think prohibition is the worst path,” he said. “It’s the best scenario for the companies that have never wanted to regularise, that have never wanted a state licence, that have never wanted to pay taxes.”

Senator Manuel José Ossandón rejected the suggestion that supporters of the amendments were overlooking gambling-related harms.

“I don’t accept that,” he said. “I worked for 20 years in poor neighbourhoods you don’t even know, so don’t come and tell me that.”

The Chamber of Deputies has already approved the broader bill, while the Senate has passed it in principle. The Economy Committee is now reviewing its provisions before the next stage.

Industry Group Criticises Ban Proposal

Agrupación de iGaming Responsable criticised the committee vote and argued that prohibition would push players toward illegal operators.

“The prohibition does not put an end to online betting,” the association said. “Instead, it has two main effects: first, it creates a market monopoly and eliminates competition.

“These safeguards are not provided by prohibition, but by a regulatory framework that addresses both the problem and the solutions. Without legislation, there is no protection,” it added.

The association also questioned the admissibility of the amendments under Senate rules.

Chile’s online gambling market remains unresolved. Since July, dozens of operators have registered and paid VAT despite a Supreme Court ruling requiring unlicensed betting websites to be blocked.

AGR president Sandra Kemp previously described the situation by saying the state was “applying a patch when we need a law.”

The next committee session is expected to combine the two prohibition proposals into one text before the bill proceeds to the Finance Committee.