Chile’s online betting industry has criticized the Government’s proposed blanket advertising ban, warning that restrictions on advertising, bonuses and promotions could weaken the position of licensed operators against unregulated platforms.
The two industry groups representing online betting operators in the country, Apal and iGaming Responsable (AGR), welcomed aspects of the proposed regulatory framework but raised concerns about the advertising restrictions included in the Government’s amendments to the online betting bill.
Apal argued that prohibiting advertising and promotional offers could undermine the objective of encouraging consumers to use regulated platforms. The group said licensed operators need to remain identifiable and be able to compete with unlicensed websites.
Sandra Kemp, Executive Director of AGR, also questioned whether a blanket prohibition would achieve its intended purpose.
She said: “Prohibiting advertising does not eliminate the clandestine market; it can even make it harder for users to find regulated alternatives overseen by the State.”
The Government’s proposal would prohibit online betting advertising across media and economic sectors, as well as bonuses and promotions designed to attract or retain customers.
The amendments also envisage penalties for breaches, including potential license revocation for authorized operators.
The industry groups’ objections focus on the potential consequences for the regulated market, particularly whether limiting advertising would reduce the visibility of licensed platforms without preventing consumers from accessing unregulated alternatives.
The industry’s concerns come as Chile’s Senate considers competing amendments to a bill first introduced in 2022 that would prohibit advertising by online betting platforms.
Amendments submitted by Senators Ibáñez and Saavedra go further, seeking to ban both the operation and advertising of online betting platforms. A separate proposal by Senator Núñez would allow the Chilean Charity Lottery and Concepción Lottery to continue operating. More than 500 amendments were submitted before the October 26 deadline.
Chile’s proposed advertising ban would cover online betting platforms across media and economic sectors
