Chile's push to bring online betting platforms under a formal tax and regulatory framework moved forward this week as the Chamber of Deputies' Finance Committee approved the bill unanimously, clearing the way for a full floor vote.
The Government of President José Antonio Kast has designated the measure with maximum legislative urgency.
The bill would subject online betting operators to VAT and income tax on the same basis as other digital entertainment services, plus a specific corrective tax of 20% on gross revenue, the same rate applied to licensed land-based casinos.
An additional 1% levy on annual gross revenue is designated for responsible gambling programs, with operators able to offset that amount through documented investments in the area. Physical casinos would also be subject to this new 1% charge.
The Finance Ministry has consistently maintained that all platforms currently active in Chile are operating illegally under existing legislation, which treats gambling and wagering as unlawful by default, with limited carve-outs for horseracing, the Concepción Lottery, the national Polla Chilena and land-based casino concessions.
The tax structure has attracted scrutiny from industry participants who argue the combined burden could reach 38% when VAT is included, potentially undercutting the incentive for offshore operators to regularize. Deputy Pier Karlezi proposed during committee discussions that tax revenues be directed to municipalities rather than consolidated into central government accounts.
He said: “Online betting has a $1.2bn revenue-generating capacity. That means we could eliminate all municipal levies and transfer the online betting tax to municipalities. I’m very open to that.”
The Gaming Superintendency estimates that more than 900 platforms operate outside the law, accounting for more than 80% of actual betting activity in the country.
A separate bill with executive urgency would prohibit professional soccer players from appearing in advertising for betting companies, a measure that has drawn cross-party support in the Sports Committee.
Chile has debated online betting regulation for more than three years, but repeated political disagreements and concerns over tax structure delayed progress on the bill
