Chile Proposes Online Gambling Ad Ban and Five-Year Licences

Chile’s government has submitted amendments to its online gambling bill proposing five-year licences, a ban on platform advertising and new conditions for operators already serving the country.

The package was delivered to the Senate’s Economy Committee on October 26. The committee began detailed consideration of the bill the following day, according to the Senate’s legislative record. The proposals remain subject to parliamentary approval.

Licensing and Taxation

Operators would pay an annual licence charge of 1,000 UTM, Chile’s monthly tax unit, equivalent to approximately $73,000 at October values.

The proposed tax structure combines 19% VAT with an additional 3% tax, both calculated on the monthly difference between stakes received and prizes paid. According to the Finance Ministry’s presentation, the resulting effective rate would be 22%.

Definitive licences would run for five years. Land-based casinos would also be permitted to offer online betting within their gaming halls through agreements with appropriately licensed and certified platform operators.

Transitional Route for Existing Operators

Applications would be rejected where an operator or related business had offered, operated or advertised unlicensed services in Chile during the preceding 12 months. Indicators would include using a .cl domain, paying for local sponsorships or contracting with Chilean payment providers.

An exception would apply to businesses entering the proposed transitional regime. This would require a one-off payment of 3,000 UTM, approximately $220,000, and settlement of digital VAT obligations, including liabilities covering the preceding 36 months.

Full payment would extinguish civil, criminal and administrative liability arising from the relevant tax breaches for declared operations. The relief concerns tax obligations and would not constitute a general exemption from other legal responsibilities. 

Advertising and Bonuses Would Be Prohibited

The advertising prohibition would cover both licensed and unlicensed platforms and extend to those commissioning, producing, distributing or facilitating promotions.

Existing advertising agreements involving operators holding transitional licences could continue for up to one year, subject to restrictions protecting minors. Separately, platforms would be barred from offering bonuses or other monetary benefits intended to attract or retain players, even without advertising them. 

Alternative amendments submitted earlier by Senate President Paulina Núñez and Economy Committee Chair Gastón Saavedra challenge the opening of a private licensing market. Their proposals differ in scope: Saavedra would preserve access for existing authorised categories, including lotteries, racecourses and casinos.

Núñez’s proposal includes permanent court-ordered blocking of illegal platforms and prison sentences of up to 15 years in aggravated cases. These provisions form a separate legislative approach from the government’s licensing package.