Chile Senate panel backs proposed betting ban 3-1, with one abstention

Chile's Senate Economy Committee has voted three to one, with one abstention, for a proposed prohibition of online betting platforms, bringing a licensing bill to a decision point between prohibition and regulation.

The proposed bans were put forward separately by Senate President Paulina Núñez and Senators Gastón Saavedra and Diego Ibáñez. Núñez's text would allow prison sentences of up to 15 years in some cases, permanent court-ordered blocking and heavier penalties for organized crime involvement. 

Saavedra and Ibáñez would criminalize profit from online betting operations and require blocking of site access and payments. These penalties remain proposals.

Saavedra, who chairs the committee, said the two prohibition proposals would be combined at the panel's next meeting, expected the following week. The vote took place on November 9 as senators began considering amendments to Bill 14,838-03. 

The legislation has passed the Chamber of Deputies and a general Senate vote, but remains at the second constitutional stage.

The Chilean Government favors a licensing framework with gambling-specific tax and advertising controls. Its proposed text would levy 3% in specific tax and require a 1% contribution for responsible gambling, according to La Tercera. It would also prohibit betting advertising, with a one-year transitional allowance for existing contracts involving operators seeking authorization.

At the committee hearing, Undersecretary of Finance Sebastián Vallebona defended the Government's work with a technical advisory group. Senator Matías Walker also argued for licensing, saying a ban could favor operators that have avoided authorization and taxation. 

Ibáñez cited the Supreme Court's decision against unauthorized platforms as a reason to reconsider the bill's original regulatory approach.

Chile already restricts access to unlicensed sites. In September, the Senate said the telecommunications undersecretariat had ordered 42 betting domains blocked, while 39 platforms were registered for digital VAT. Tax registration does not provide a gambling license. 

The committee's decision changes the draft bill, which still requires further consideration in the Senate.

At the October amendment deadline, more than 500 changes were submitted to the online betting bill, including proposals to spare authorized lotteries from the proposed ban.