Chile’s Internal Revenue Service (SII) will begin enforcement action against foreign online betting platforms after none registered to declare and pay value-added tax (VAT) under a system introduced in June.
From July 15, banks, non-bank financial institutions and other payment providers will be required to withhold 19% VAT from transactions involving platforms that have not entered the voluntary registration system. The money must then be transferred to the tax authority each month.
The measure applies to betting, gambling and casino services supplied remotely by businesses without a domicile or residence in Chile. The SII said the taxable amount will normally be based on the total sum wagered by Chilean customers.
Platforms may instead calculate VAT using wagers less prizes paid, provided they can supply reliable evidence of those payments to the authority.
Resolution No. 69, issued on June 2, opened Chile’s simplified digital VAT system to foreign gambling businesses. The SII said no platform had registered by July 13, despite online operators maintaining a visible presence through advertising, sports sponsorships and media campaigns.
The authority identified 20 platforms that collectively processed more than four million transactions in Chile during 2025. The list included Bet365, Betano, Betsson, Betway, Coolbet, LeoVegas, Novibet, PokerStars, Roobet, Stake and TonyBet.
Payment data collected from debit, credit and prepaid cards will allow the SII to identify transactions and determine which platforms should be subject to withholding.
Chile has used a similar enforcement model for foreign digital service providers since 2021, when VAT was extended to overseas digital services.
The tax measure does not create an online gambling license or authorize operators to offer betting in Chile. A bill establishing a regulated online gambling market remains under consideration in the Senate after being approved by the Chamber of Deputies in 2023.
The proposed framework would introduce licensing requirements, consumer protection measures, responsible gambling obligations and a dedicated tax regime for online operators.
The VAT enforcement initiative reflects Chile's broader effort to capture tax revenue from offshore gambling while lawmakers continue debating long-term regulation. Until dedicated legislation is enacted, offshore operators remain in a legal grey area, with regulators, tax authorities and courts adopting different approaches to enforcement.
Earlier this month, Chile's Tribunal de Defensa de la Libre Competencia (TDLC) lifted the suspension on the Viña del Mar casino tender, allowing the bidding process to resume while it continues reviewing competition concerns raised by Inversiones Marina del Sol. The decision marked another significant regulatory development for the country's gambling sector.
The SII said payment providers, rather than betting operators, will initially bear responsibility for collecting and remitting VAT where platforms fail to register
