Chile’s Internal Revenue Service (SII) has defended its decision to require offshore online betting platforms to pay VAT, rejecting criticism that the measure effectively legitimizes gambling operators that courts have previously deemed illegal.
The issue was debated this week before the Senate Economy Committee, where SII Director Jorge Trujillo was called to explain a controversial resolution establishing tax mechanisms for online betting platforms serving Chilean customers.
According to Trujillo, tax obligations arise when taxable economic activity takes place, regardless of whether the activity has received regulatory authorisation.
As a result, betting platforms that provide services to users in Chile must pay taxes on those activities, he argued, without this implying government recognition or approval of their operations.
“What we are doing is charging taxes paid for activities actually carried out,” Trujillo told senators.
The explanation failed to convince several members of the committee, who argued that the issue still extends beyond tax collection and raises broader legal and ethical questions.
The debate has also reached Chile’s political opposition, with lawmakers questioning whether taxation of online betting creates a contradiction with Supreme Court rulings that have previously classified the activity as illegal.
Following the session, the committee agreed to summon Finance Minister Jorge Quiroz to explain the government’s position on the issue.
Lawmakers also voted to invite Chile’s Superintendence of Casinos and Gaming and request clarification from the Supreme Court regarding the apparent discrepancy between judicial rulings and the SII’s tax policy.
The International Betting Integrity Association (IBIA) and the Chilean Association of Online Betting Platforms (APAL) recently signed a cooperation agreement supporting the development of a regulated online betting market in Chile
