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Chile court adopts five-stage DNS system to block unauthorized betting sites

The procedure requires SCJ validation before telecom providers act and can be repeated as operators introduce new domains or mirror sites.

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Key Points
Santiago Court of Appeals approves DNS blocking procedure proposed by Subtel 
Five-stage system creates an ongoing process for identifying, validating and blocking unauthorized betting domains
Ruling follows technical concerns over mirror sites, overblocking and the effectiveness of earlier court-ordered restrictions

The Santiago Court of Appeals has established a permanent five-stage procedure for blocking unauthorized online gambling websites, creating an enforcement mechanism intended to address operators switching domains after earlier restrictions were imposed.

The court adopted a DNS-based system proposed by Chile's Subsecretariat of Telecommunications (Subtel), which concluded that blocking specifically identified domains was less intrusive than alternatives involving deeper inspection of internet traffic. 

Subtel had assessed DNS, Server Name Indication and Deep Packet Inspection methods before recommending DNS on proportionality, privacy and cybersecurity grounds.

Under the procedure, Lotería de Concepción or Polla Chilena de Beneficencia can report domains, subdomains and related sites to the Superintendencia de Casinos de Juego (SCJ). 

The SCJ must validate whether they correspond to online betting or gambling platforms before passing that information to Subtel.

Subtel will then transmit the approved list to Claro, Entel, GTD Manquehue, Movistar, WOM and VTR, which must implement the DNS restrictions within the specified timeframe and report compliance to the court. 

The process can be repeated when new mirror domains appear and includes a mechanism for correcting erroneous blocks.

The mechanism implements a September 2025 Supreme Court ruling that ordered internet providers to prevent access to gambling operations without legal authorization.  

The Supreme Court subsequently reopened enforcement proceedings after finding that blocking original domains alone had not effectively implemented its judgment because platforms remained accessible through alternative addresses.

Subtel had acknowledged that no technical measure could permanently prevent mirror sites from appearing. Its five-stage proposal therefore establishes an ongoing process for adding domains as they emerge. 

The decision arrives while Chile continues to lack a licensing framework for commercial online betting. The SCJ maintains that gambling is generally unlawful unless expressly authorized by legislation, while legislation to regulate online betting remains under consideration in Congress.

The position has become more complex since Chile's Internal Revenue Service (SII) introduced digital VAT requirements for offshore betting platforms. Twenty-five platforms had registered by July 15, including businesses associated with Betano, Betsson, Coolbet, Betway and Novibet. The SII has stressed that tax registration concerns tax liability and does not constitute authorization to operate.

The Agrupación Chilena de Plataformas de Apuestas en Línea (aPAL) has opposed the blocking framework, raising concerns about the SCJ's authority and the implications for Chile's net neutrality rules.

The ruling comes as Chile's regulated land-based sector faces a separate series of legal disputes over casino licensing. Earlier this month, the Court for the Defense of Free Competition rejected attempts by Marina del Sol, Corporación Meier and Dreams to suspend municipal casino tenders in Iquique, Coquimbo, Viña del Mar and Pucón. 

Good to know

Subtel rejected more intrusive traffic-inspection methods in favor of DNS blocking partly because of privacy, cybersecurity and net neutrality considerations

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