Chile Accelerates Online Betting Regulation Bill

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Chile Grants Highest Legislative Urgency to Online Betting Bill – Senate Faces 15 Day Deadline for Debate

Key Takeaways

Chile’s executive branch has granted the online betting regulation bill the highest legislative urgency, requiring Senate discussion within 15 days.
The proposal establishes a licensing, tax, compliance, and enforcement framework for online betting operators.
Licensed operators would pay a 20 percent tax on gross gaming income, VAT, and additional sector specific contributions.
Unlicensed operators could face criminal liability, fines, and prison terms, and recent operators may be barred from applying for a license.

Highest Legislative Urgency Sets 15 Day Deadline

Chile’s online betting regulation bill has entered a decisive phase after the executive branch granted it the highest level of legislative urgency on May 7. Under this status, the Senate must debate the proposal within 15 days.

The bill, formally registered as Bill 14838-03, is currently in its second constitutional reading. It was originally introduced in March 2022 under the administration of former President Sebastián Piñera. The proposal was subsequently retained by the government of President Gabriel Boric through repeated urgency motions and has now been accelerated again under President José Antonio Kast.

The renewed push follows limited progress after the Senate approved the project in August 2025 with 27 votes in favor, three against, and five abstentions. After that vote, the bill was referred to the Joint Committees of Economy and Finance for detailed review. Amendments were due by September 29, but no substantial progress was reported until the latest urgency motion.

For operators and users monitoring Chile’s market, the urgency status signals that lawmakers must now address the regulatory framework within a defined timeframe.

Supreme Court Ruling Intensifies Pressure on Unlicensed Operators

The acceleration of the bill comes after a November ruling by Chile’s Supreme Court. The court ordered major internet companies operating in the country to block access to all illegal online betting sites within five days.

In its decision, the court stated that only three entities are legally authorized to offer online gambling in Chile: Polla Chilena de Beneficencia, Lotería de Concepción, and Teletrak.

This ruling increased enforcement pressure on offshore and unlicensed platforms that have been accessible to Chilean users. The proposed legislation would formalize a regulatory structure and define which operators may legally enter the market under a licensing regime.

Licensing Model Requires Local Incorporation and Full Ownership Disclosure

Under the bill, online betting operators would need to obtain a general operating license. To qualify, they must incorporate in Chile as closed corporations with an exclusive corporate purpose.

The proposal also requires operators to disclose the origin of their funds, their shareholders, and their ultimate beneficial owners. These provisions are designed to establish transparency regarding ownership and capital sources.

The existing Superintendency of Gaming Casinos would be transformed into the Superintendency of Casinos, Betting and Games of Chance. This expanded authority would be responsible for granting licenses, supervising technical compliance, and sanctioning violations.

The regulator would also have the power to access licensed platforms remotely and in real time. This access would allow oversight of bets, payments, and financial flows.

Tax Structure Includes GGI Levy, VAT, and Additional Contributions

The bill sets out a multi layer tax structure for licensed operators. Companies would pay a 20 percent tax on gross gaming income, in addition to value added tax.

A 1 percent responsible gaming contribution would apply to annual gross revenue. The proposal also introduces a 15 percent tax on user winnings at the time of withdrawal.

For sports betting activity, 2 percent of income would be allocated to national sports federations.

Operators that operated in Chile without a license during the 12 months prior to applying would be barred from requesting a license. To regularize their situation, such companies would have to pay a one off substitute tax of 31 percent on gross income generated during the previous 36 months.

Criminal Liability and Anti Money Laundering Obligations

The legislation would classify licensed operators as obligated entities under Chile’s anti money laundering framework. This would require them to report suspicious transactions.

The bill also introduces new offenses under the Law on the Criminal Liability of Legal Persons. Operating without a license could lead to prison terms and fines ranging from 11 to 200 monthly tax units.

In addition, a National Self Exclusion Register would be established. This register would apply to both online platforms and physical casinos, with a minimum exclusion period of six months.

These provisions define compliance obligations not only for operators but also for the supervisory authority responsible for enforcement.

Our Assessment

Chile’s decision to grant the highest legislative urgency to Bill 14838-03 obliges the Senate to address the online betting framework within 15 days. The proposal combines licensing requirements, corporate transparency rules, tax obligations, enforcement powers, and criminal sanctions.

The bill follows a Supreme Court ruling that reaffirmed the limited number of entities currently authorized to offer online gambling. If adopted, the legislation would create a formal pathway for licensed operators while imposing financial and legal consequences on companies that previously operated without authorization. For users and operators, the debate will determine how online betting is structured and supervised under Chilean law.