Chilean senators challenge tax authority over online gambling VAT decision

Three Chilean opposition senators, all members of the Economy Committee, have escalated a dispute over online gambling regulation, announcing they will take the Internal Revenue Service (SII) to the Comptroller’s Office over a resolution they say effectively legitimises illegal betting operators.

The controversy centres on an SII decision allowing online betting platforms to pay digital VAT, a move critics argue gives de facto recognition to companies that remain illegal under Chilean law. The matter comes as broader gambling regulation remains under discussion in Congress.

Senator Diego Ibáñez stated: "Online gambling platforms are not being regulated by anyone; their regulation is being defined in Congress, in the Senate, and not by a department of the Ministry of Finance. Administratively legalizing an irregular business is giving in to the online gambling lobby. We will take this irregularity to the Comptroller General's Office and summon the director of the Internal Revenue Service to appear before the Senate to provide the necessary explanations."

Senator Gastón Saavedra, who chairs the Economic Commission, argued that the measure “legitimises online betting of an illegal nature.”

Claudio Alvarado, the Minister of the Interior and the General Secretariat of Government, was asked about the government’s perspective on the issue. He said this will be defined by law, but also stated that the Internal Revenue Service (SII) has acted in accordance with its powers.

Meanwhile, Finance Minister Jorge Quiroz emphasized that the Internal Revenue Service is an independent entity, governed by its director, and that the director applies the law.

The Chilean Association of Casinos and Games described the government’s position as “surprising and confusing,” arguing that regulatory reform should be prioritised over tax collection measures applied to unlicensed operators.