Chile telecom regulator warns gambling site blocking could breach net neutrality

Chile's Undersecretariat of Telecommunications (Subtel) has warned that proposed measures to block mirror domains used by unauthorized online gambling platforms could compromise network neutrality and unintentionally affect legitimate internet services.

The issue follows a September 2025 ruling by Chile's Supreme Court ordering major internet service providers, including ClaroVTR, Entel, WOM, Movistar and GTD, to block access to roughly a dozen offshore gambling sites operating without authorization in the country.

Several operators, including Betano, Betway, Coolbet and 1xBet, have since bypassed the restrictions by launching mirror domains, prompting state lottery operator Lotería de Concepción to request additional enforcement measures from Subtel.

In response, the regulator evaluated two technical approaches: Deep Packet Inspection (DPI) and Server Name Indication (SNI) filtering. According to Subtel, both methods present a significant risk of overblocking, potentially disrupting legitimate websites or services hosted on shared infrastructure such as content delivery networks.

The agency also noted that Chile's regulatory framework prioritizes net neutrality, limiting the ability of telecommunications providers to selectively interfere with internet traffic.

Industry stakeholders remain divided over the next steps.

Carlos Baeza, Attorney for the Online Betting Platforms Association, said the request for additional blocking measures "exceeds the legal obligations of telecommunications companies and lacks practical purpose."

Macarena Carvallo, President of Polla Chilena de Beneficencia, argued that the regulator's assessment confirms the technical feasibility of blocking and said the judiciary's ruling must be enforced to protect the country's regulated gambling framework.

The situation places Subtel in a complex regulatory position, balancing compliance with the Supreme Court's order against the technical and legal constraints imposed by Chile's net neutrality regime.