The Chilean government has submitted amendments to the Senate to the bill regulating online betting, which is currently in its second reading: a 22% tax and a full advertising ban. President José Antonio Kast presented the 114-page document together with five ministers at the Senate Economic Affairs Committee. The deadline for submitting amendments closed on October 26, and the committee session to consider them took place on October 27.
The tax structure works as follows: 19% VAT on the monthly difference between total bets and prizes paid out, plus an additional 3% tax. Together, that comes to 22%, which includes the VAT and the extra 3% on top.
A permanent license would be valid for five years. The annual fee would be 1,000 UTM, roughly $73,000. Companies that operated without authorization could obtain a transitional license for six months. To get it, they would need to pay 3,000 UTM (about $219,000) and settle or agree on payment of VAT for the past 36 months. An application may be rejected if the company operated in Chile without a license for 12 months before filing.
The ban applies to both licensed and unlicensed operators. It covers those who order or contract advertising, those who create or produce it, those who distribute it, and intermediaries in its placement. For unlicensed operators, advertising would become a criminal offense, punishable by presidio menor in its minimum and medium degrees and fines of 10 to 20 UTM. A licensed operator that violates the ban would commit a gravisima infraction and could lose its license. Bonuses and promotions aimed at attracting players are also prohibited.
For affiliates and media buyers, this means the advertising channel in Chile closes for everyone covered by the ban, and player-acquisition bonuses are removed from the business model. Physical casinos will be able to offer platform bets in their venues, but only through a contract with a licensed operator.
The situation is different now: according to the regulator SCJ, commercial operation of private online betting platforms is currently illegal in Chile. The operators' association aPAL criticized the ban, arguing that without the right to advertise and offer comparable terms, legal platforms will not be able to compete with illegal ones.
On the other hand, senators consider the rate too low. In their view, 22% is very little compared with taxes on alcohol and cigarettes. Deputy Álvaro Carter believes the tax should be around 40% and include prizes.
For now, these are amendments, not a law. The committee will continue reviewing the amendments at its next sessions.
