Chilean Senate begins discussion on online gambling regulation

Jenny Ortiz April 5, 2024

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Chilean Senate begins discussion on online gambling regulation

Chile’s journey toward regulating online gambling took a significant step forward as the Senate economic committee convened on Tuesday, to hear arguments from various stakeholders regarding enforcement and taxation policies. The session featured insights from gambling lawyer Cristina Romero, Heidi Berner representing the Ministry of Finance, and representatives from the Undersecretariat of Telecommunications (Subtel), each advocating for their respective positions.

Earlier this year, the South American country’s Chamber of Deputies approved the online gaming bill.

Taxation concerns raised by industry expert??

Romero, a lawyer at Loyra Abogados specializing in gambling law, emphasized the potential adverse impact of high tax burdens on operators, which could hinder the effective channelization of gambling activity. She advocated for a simplified tax structure, arguing against the complexity of the proposed tax framework. Under the current bill, operators face a 19 percent tax on gross gambling revenue, along with additional contributions to responsible gambling initiatives and sports federations.

Drawing on international examples, Romero pointed to the United States, where a lower tax rate has contributed to a significant portion of the market operating legally. She also referenced Peru and Brazil as models to follow, highlighting how lobbying efforts led to revisions in tax rates in these jurisdictions.

Challenges in enforcement highlighted by Subtel??

The Undersecretariat of Telecommunications (Subtel) clarified its role in the regulatory landscape, stating that it lacks direct authority to enforce penalties or regulate content. While Subtel plays a supervisory role under net neutrality laws, it relies on internet service providers (ISPs) to implement measures such as blocking access to unauthorized gambling sites. However, Subtel acknowledged the limitations of this approach, noting the ease with which users can circumvent blocks using VPNs and other methods.

Subtel emphasized the importance of cooperation from ISPs and the government’s capacity to enforce regulations effectively for any blocking measures to succeed.

Introduction of responsible betting policy??

Chile’s Ministry of Finance unveiled plans to introduce a National Responsible Betting Policy, informed by inputs from the Ministry of Health and the Superintendency of Gaming Casinos (SCJ). This policy aims to regulate not only online operators but also land-based casinos under the jurisdiction of the SCJ. The comprehensive approach underscores the government’s commitment to promoting responsible gambling practices across the industry.

Continued deliberations by the Senate committee??

The Senate’s economy committee will continue its deliberations on online gambling regulation, with further hearings scheduled for the end of the month. The ongoing discussions reflect Chile’s proactive efforts to establish a robust regulatory framework that balances industry growth with consumer protection and social responsibility.?