Chile's Undersecretariat of Telecommunications (Subtel) has submitted a technical proposal to the Court of Appeals of Santiago describing three ways internet providers could block illegal online betting platforms.
The filing responds to a court request for more effective measures after a Supreme Court order targeting unlicensed sites proved difficult to enforce.
The report evaluates deep packet inspection (DPI), server name indication (SNI) and DNS blocking. Subtel concluded that DNS blocking is the most viable of the three, noting that DPI and SNI carry a higher risk of overblocking since both methods could inadvertently restrict legitimate services that share servers or content delivery networks with unlicensed gambling operators.
The case traces back to 2024, when Lotería de Concepción sued six internet service providers: Claro, Entel, GTD, Movistar, VTR and WOM, accusing them of failing to block access to unauthorized betting sites.
Chile's Supreme Court sided with the lottery operator in September 2025, ordering the companies to block a dozen platforms. The measure had a limited practical effect, as operators evaded it within weeks by shifting their services to new domains.
Subtel has emphasized that it is not a party to the underlying lawsuit and that its involvement is limited to a technical and regulatory role aimed at guiding implementation within the existing legal framework. The agency has also pointed to Chile's network neutrality rules as a constraint on its authority to compel internet providers to adopt blocking technologies unilaterally.
The proposal lands as Chilean authorities pursue parallel strategies against the unlicensed betting market. Chile's tax authority has recently defended its decision to require offshore betting and gaming platforms to register for value-added tax, saying that tax compliance does not grant legal status or authorization to operators that lack a gambling license.
The Court of Appeals must now determine whether Subtel's proposed mechanism meets the legal threshold it set for compliance.
Chile tax authority has recently enabled VAT registration for offshore gambling operators
