Chile's legislative landscape is poised for transformation, with the chamber of deputies passing a bill to regulate online gaming. This development propels the bill to the Senate for a subsequent review, signaling a proactive approach to shaping a regulated and safe online gaming environment in the country.
The Chilean Chamber of Deputies has taken a crucial step in regulating online gaming by passing a comprehensive bill. Garnering substantial support, the bill's approval ushers it into the Senate for a second legislative phase, reflecting a strong commitment to fostering a competitive yet responsible online gaming market in Chile.
The proposed legislation, if enacted, would significantly enhance the powers of key regulatory bodies such as the Superintendence of Casino Games (SCJ), the Commission for the Financial Market (CMF), and the Internal Revenue Service (SII). These bodies will play instrumental roles in overseeing and maintaining the integrity of the burgeoning online gaming sector.
A pivotal aspect of the bill is the establishment of a National Policy on Responsible Gambling. In this initiative, the SCJ collaborates with Chile's Ministries of Finance and Health to advocate for player health and safety, underlining a commitment to ethical gaming practices.
Under the new regulations, online gaming operators must pay a substantial license fee for operating an individual online betting platform. Additionally, online gaming will be subject to Value-Added Tax (VAT), categorized as a digital entertainment service. This structure enables operators to reclaim tax credits on advertising and software acquisition expenses.
A notable feature of the bill is the allocation of 2% of gross gaming revenue (GGR) by online operators to sports development. This allocation is subdivided equally among the National Sports Institute, the Chilean Olympic Committee, and the Chilean Paralympic Committee. Additionally, like their land-based counterparts, online operators will contribute 20% tax to address externalities and a responsible gaming contribution equivalent to 1% of their annual gross income.
The bill also outlines robust measures to stop illegal online gambling activities in Chile. Advertising regulations mandate the promotion of only legal operators. Banks are empowered to block transactions linked to illegal platforms, and ISPs are tasked with restricting access to these forbidden sites.
The journey toward online gaming regulation in Chile began in February 2021 with the government's announcement to legalize online gaming. This was followed by the publication of the country's first online gaming bill in March 2022. With the chamber of deputies' approval, the bill now moves to the Senate, entering a critical stage in Chile's legislative process to formalize and regulate online gaming.
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