TITLE: Chile's Senate Approves Online Betting Platforms Regulation Bill in General Discussion
BODY:
On September 25, 2024, Chile's Senate approved in general discussion a bill regulating the development and operation of online betting platforms (bulletin 14.838-03), with 27 votes in favor, 3 against, and 5 abstentions. The bill, submitted by the Executive with "utmost urgency" classification, establishes a comprehensive regulatory framework for an activity that has operated illegally in Chile for several years, generating an estimated market of approximately 3.1 billion U.S. dollars annually with around 900 unregulated platforms.
The bill creates a semi-open market subject to authorization and supervision by the Superintendence of Casinos, Betting and Games of Chance (replacing the current Superintendence of Casinos). Key provisions include: strict requirements for operators, including incorporation as closed corporations in Chile with minimum capital and identification of beneficial owners; mandatory responsible gambling policies; comprehensive protections for minors prohibiting account opening and age-targeted advertising; a National Responsible Betting Policy developed by the Ministry of Finance; and enhanced enforcement mechanisms against illegal gambling, including website blocking, payment system controls, and strengthened criminal penalties. The bill imposes a 20 percent tax on gross revenues from authorized operators, a 2 percent levy on sports betting revenues distributed to sports federations and Olympic committees, and a 31 percent tax plus user account fees for previously illegal operators seeking regularization after a 12-month "cooling off" period.
The Senate will now consider the bill in particular discussion through joint sessions of the Economy and Finance Commissions. Amendments must be submitted by September 29, 2024, at 12:00 hours. The Finance Ministry projects net positive fiscal impact at medium term through formalization of the currently unregulated sector, with implementation costs estimated at 901.9 million pesos in year one and 850.6 million pesos thereafter.