Chile’s government has moved to accelerate long-running efforts to regulate online betting by granting “suma urgencia” status to a bill currently under Senate review. The decision significantly shortens the legislative timeline, requiring lawmakers to address the proposal within 15 days as the country pushes to establish a formal legal framework for digital gambling.

The measure, originally introduced in March 2022, has remained under consideration across multiple administrations. It is now in its second constitutional stage in the Senate, following renewed backing from the executive branch. Alongside this initiative, urgency has also been assigned to a separate proposal aimed at restricting advertising agreements between professional footballers and online betting companies.

Licensing Structure and Regulatory Expansion

The draft legislation outlines a comprehensive licensing system for operators seeking to offer online betting services in Chile. Companies would be required to obtain a general operating licence and establish themselves as closed corporations within the country, with their sole purpose tied to this activity.

Regulatory oversight would expand significantly under the proposal. The existing Superintendence of Casinos of Games would be restructured into the Superintendence of Casinos, Bets and Games of Chance. This body would oversee licensing, ensure compliance with technical standards, and enforce sanctions when necessary.

Operators would also be required to provide regulators with remote, real-time access to their platforms. This access would allow authorities to monitor betting activity, payouts, and financial flows directly, strengthening supervision over the sector.

In addition, operators would need to disclose details about their funding sources and ownership structures. They would also be classified as reporting entities under anti-money-laundering rules, requiring them to flag suspicious transactions.

The bill introduces a tax structure aligned with existing land-based casino regulations. Online operators would face a 20% tax on gross gaming revenue, alongside value-added tax. A further 1% contribution would be allocated to responsible gambling initiatives.

Additional fiscal measures include a 15% tax on player winnings at the point of withdrawal and a 2% share of sports betting revenue directed toward national sports federations.

Authorities would gain expanded enforcement powers to tackle illegal activity. These include the ability to block unlicensed websites and IP addresses, as well as requirements for financial institutions to halt payments linked to unauthorized operators. The framework also introduces new criminal and corporate liability provisions, with penalties ranging from fines to potential prison sentences for those operating without a licence.

Recent court actions have already supported this direction. Chile’s Supreme Court ordered internet service providers to block access to illegal gambling platforms, reinforcing the government’s broader efforts to limit unregulated activity.

Player Protections and Advertising Limits

The proposed law sets out detailed restrictions on who can participate in online betting. Individuals barred from holding accounts would include minors, those without valid Chilean identification, people who have opted for self-exclusion, prisoners, and individuals subject to certain unpaid child support obligations.

The legislation also restricts participation by individuals with direct ties to the industry or its oversight. This includes regulatory staff, public officials managing public funds, and executives or owners associated with betting operators.

Advertising rules would limit promotional activity to licensed platforms and prohibit content that targets minors or encourages their participation. A parallel bill under consideration seeks to further tighten these controls by banning sponsorship agreements between football players and betting companies.

A central feature of the proposal is the creation of a National Self-Exclusion Register. According to G3 Newswire, this system would apply across both online platforms and physical casinos, ensuring that individuals who opt out of gambling are blocked across all channels. The minimum exclusion period would be set at six months.

The legislation also addresses the status of operators that have previously offered services without authorization. Companies that operated illegally in Chile within the 12 months prior to applying would be prevented from immediately seeking a licence. To regularize their position, they would need to pay a one-off substitute tax based on past revenues, which could reach 31% of gross income over a 36-month period.