Chile is making significant strides toward developing a regulated online gambling market, with a new partnership aimed at fostering a modern, well-structured legal framework for the industry. The Betting and Gaming Council (BGC), representing approximately 90% of the UK’s regulated gambling operators, has signed a Cooperation Agreement with Chile’s Agrupación de Plataformas de Apuesta en Línea (aPAL). This collaboration seeks to leverage international expertise in gambling regulation to guide Chile in introducing a robust, sustainable, and consumer-focused gambling environment.

Paving the Way for Gambling Regulation in Chile

Chile’s online gambling sector currently operates without formal regulation, despite the country having a well-established land-based casino market, along with horseracing and a duopoly on lottery operations. While online gambling is not prohibited, the lack of oversight means that players are left without adequate consumer protections, and the government lacks control over illegal activity. A draft bill aiming to regulate the sector has been in discussion for years, and with a recent change in the political landscape, the Chilean government is now poised to push forward with legislation that could introduce licensing by 2027.

The Cooperation Agreement between the BGC and aPAL, formed in 2022 by international betting operators, seeks to support the Chilean government in crafting a modern regulatory framework. The focus is on creating a balanced licensing regime that protects consumers, curtails illegal gambling, and ensures a competitive market. Under the terms of the agreement, both parties will collaborate for at least one year, sharing knowledge, evidence, and international best practices to help develop a regulatory system that promotes both consumer safety and market viability.

Carlos Baeza, a Chilean lawyer and representative of aPAL, emphasized the opportunity for Chile to implement a regulatory framework that addresses both consumer protection and the need for market transparency. He noted, “Chile has a real opportunity to introduce a modern, robust regulatory framework for online gambling that protects consumers, tackles illegal activity and delivers meaningful public benefits. At present, online gambling operates entirely outside any regulatory oversight, leaving players without safeguards and the state without visibility or control.”

Baeza’s comments highlight the current gap in regulation, with online gambling operating in an environment where there is minimal control over operators or consumer safety. The BGC and aPAL aim to address these challenges by guiding Chilean policymakers in creating a legislative framework informed by successful models from well-regulated international markets.

Grainne Hurst, Chief Executive of the Betting and Gaming Council, expressed her enthusiasm about the partnership, noting the importance of the timing. “The BGC is pleased to be working with aPAL at a pivotal moment for gambling reform in Chile. Well-designed regulation is essential to protect players, raise standards and drive out the harmful black market,” she said in the regulator’s press release. Hurst also underscored the value of drawing from the UK’s regulated market, which provides a proven model of robust licensing, high standards, and effective oversight. This experience will help Chile ensure that gambling regulations can support a safe and thriving industry.

The Future of Online Gambling Regulation in Chile

Chile’s potential move toward online gambling regulation represents a significant shift in the country’s approach to the sector. As the legislative process advances, the collaboration between the BGC and aPAL will be crucial in shaping the final framework. The aim is to balance consumer protection, market integrity, and legal oversight to create a sustainable, well-regulated gambling environment.

The proposed licensing system is expected to be a game-changer, setting the foundation for a regulated online gambling industry that can compete with other international markets. It is anticipated that the new regulatory framework will also curb illegal gambling activities, which currently operate outside of any oversight, further strengthening the sector’s legitimacy and public trust.