Chile's Senate Economy Committee is seeking changes to the country's proposed online betting framework as lawmakers attempt to reconcile taxation of offshore platforms with court-backed measures requiring their websites to be blocked.
Senators Gastón Saavedra, Matías Walker and Ricardo Celis have proposed additional consumer protection, licensing and tax requirements for the legislation, which remains under consideration in Congress.
The proposals include biometric identity checks intended to prevent underage gambling, restrictions on payment methods and limits on advertising during periods accessible to minors.
Lawmakers also want operators to disclose their ultimate beneficial owners and maintain a legal presence and registered address in Chile.
The senators have also proposed a National Responsible Betting Policy focused on preventing gambling-related harm. Athletes, managers, coaches, referees and public officials involved in sporting events would be prohibited from betting on those events.
The latest debate follows the emergence of two parallel approaches to online gambling in Chile.
The Internal Revenue Service (SII) told the committee that 39 betting platforms are registered under the country's digital VAT regime. With payments collected quarterly, the agency expects more than $100m to be collected in October.
Tax registration does not provide authorization to offer gambling in Chile. The distinction has become increasingly significant as authorities simultaneously pursue restrictions against platforms considered unauthorized.
Subtel told lawmakers that it had ordered 42 online betting sites to be blocked. The enforcement follows court rulings requiring telecommunications providers to restrict access to unauthorized gambling operations.
The senators identified the simultaneous collection of VAT and blocking of betting sites as an inconsistency that the proposed regulatory framework needs to address.
Their tax proposals would introduce a gambling-specific levy in addition to VAT, with contributions directed toward community sport, gambling harm prevention and treatment programs and the Municipal Common Fund.
The proposals would also strengthen enforcement powers for the Superintendencia de Casinos de Juego (SCJ), SII, Financial Market Commission and Financial Analysis Unit. Measures under consideration include technological blocking, financial tracing and sanctions under Chile's economic crimes legislation.
In August, the Santiago Court of Appeals approved a five-stage DNS blocking procedure that allows additional domains and mirror sites to be identified and restricted as they appear.
Chile's digital VAT regime had 25 betting platforms registered by mid-July before the number increased to 39 by September
