Chile’s Internal Revenue Service (SII) expects to collect more than $100m annually through VAT payments from offshore online betting platforms serving Chilean customers.
The projection was revealed by SII Director Jorge Trujillo following the publication of a resolution establishing tax collection mechanisms for online gambling operators.
Trujillo once again defended the measure, arguing that requiring platforms to pay taxes does not legalize or authorize their operations, but simply applies existing tax legislation to economic activities already taking place in the country.
The decision has sparked criticism from politicians and industry observers who claim the measure risks creating the perception that Chile is indirectly legitimising operators whose legal status remains disputed.
Opposition lawmaker Diego Schalper described the situation as contradictory, arguing that activities considered illegal should not simultaneously be subject to taxation.
The controversy has also attracted scrutiny from Chile’s Comptroller General, which has requested clarification from the SII regarding the scope and implications of the measure.
A gambling regulation bill has remained under legislative discussion since 2022, leaving authorities navigating a complex environment where courts have ordered betting platforms blocked while tax authorities seek to collect revenue from the same operators.
Recently, the SII defended its position before the Senate Economy Committee, rejecting accusations that the tax measure encourages gambling or validates unlicensed operators.
Three Chilean opposition senators have announced plans to refer the SII’s decision to the Comptroller’s Office, arguing that the measure could effectively legitimize operators that remain outside the country’s formal regulatory framework.
The debate comes as Chile continues to operate without a fully regulated online betting framework
