Chile is located in southwestern South America, at the western foothills of the Andes Mountains, sharing its borders with Argentina, Peru, Bolivia, Pacific Ocean and Antarctica. Having a rich history of gambling law, the regulatory system of Chile is multilayered. This guide endeavors to offer an insight into the legal setup of betting sites in Chile and Chile sports betting depicting the gambling laws of the country, regulatory bodies, licensing process and the taxes imposed, among other things.
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Historical Context
Casino and gambling regulation in Chile go as far back as 1812. It was not until 1990 that the only legal type of gambling was wagering at the racetracks. This was mostly in form of pari-mutuel betting on tracks which is still legal to date, along with dog racing. The initial legal sports betting was introduced in 2008 when the lottery company Polla Chilena was licensed to offer fixed odds betting.
Key Historical Milestones
- 1812: First gaming statues were passed.
- 1990: Betting on horse racing allowed.
- 2008: Polla Chilena legalized fixed odds sports betting.
Gambling Law and Regulation in Chile – 5 Things to Know
Regulatory Framework of Betting Sites in Chile
New Regulatory Developments
‘In August 2023 the Economic Committee at Chile’s Chamber of Deputies has declared the publication of 15 new articles within the legislative framework for Bill 035/2022’. This new approach intends to impose heavy penalties on illegal gambling outfits and confer extra powers on different regulatory bodies.
Key Regulatory Bodies
- Superintendency of Gaming Casinos (SCJ): Manages casinos and growth sectors.
- Commission for the Financial Market (CMF): Participates in gambling financial regulations.
- Internal Revenue Service (SII): Takes care of tax related aspects.
- Undersecretary of Telecommunications: Engaged in digital casino control.
- Financial Analysis Unit (UAF): Is centered on gambling-related financial crimes.
National Responsible Internet Betting Policy
A National Responsible Online Betting Policy will be created by the SCJ, in partnership with the ministries of Finance and Health. The objective of this policy is to promote responsible gambling behaviours, control gambling related issues, and prescribe operators’ advertisements and promotions.
Licensing and Taxation of Betting Sites in Chile
Types of Licenses
The Chilean gaming market is controlled by Superintendency of Casinos (SCJ). Operators have to follow tight guidelines to be given a license.
Key License Types
- General License: Renewable after every five years.
- Temporary License: Non renewable, valid for six months.
Fees
- Annual Licensing Fee: About seventy thousand dollars.
- GGR Tax Rate: 20%.
Taxation
Specific Gambling Taxes
The existing version of the bill 035/2022 imposes several defined taxes targeted at controlling the online gambling sector.
Tax Rates
- Gross Revenue Tax: 20% of the gross revenue of an internet betting platform.
- Sports Betting Tax: A 2% fee imposed on sports betting, with the proceeds going to the national federation of the sport.
- Responsible Gambling Tax: One cent per dollar in gross revenue is to be set aside by the company to promote responsible gambling.
- Player Winnings Tax: A 15% tax substitutes is placed on users of gambling income.
Prohibited and Permitted Bets
Permitted Bets
- Horse Racing: Parimutuel and fixed odds betting are both permitted.
- Sports Betting: Controlled and allowed through authorized operators such as Polla Chilena.
- Casino Games: Limited to registered casinos and some state-owned bodies.
Prohibited Bets
- Unlicensed Gambling: Severe punishments for all unlicensed gambling actions.
- Betting on Lottery Numbers and Foreign Horse Races: Out of permitted by the new regulations.
Recent Legislative Developments
2023 Legislative Framework
It was in 2023 when the Chilean Senate returned to attempts to introduce the new federal structure of gambling. This included the following key initiatives:
Key Articles and Penalties
- 1. Article 15: Sanctions in case of betting events modification.
- 2. Article 28: Bans betting on lottery numbers and horse races in other countries.
- 3. Article 38: Sanctions for utilization of account that does not belong to the user, or presentation of own account to the third parties.
Sports Integrity Bill
In July 2023 the National Congress declared establishing of a committee to study relations between football clubs and betting companies. This was in line with the implementation of the new Sports Integrity Bill that outlaws advertisement of illicit activities.
Key Dates and Events
- 1812: First gambling laws
- 1990: Horse racing betting legalization.
- 2008: Fixed odds sports betting which has been made legal.
- March 2022: Bill 035/2022 introduced.
- August 2023: Consecutive publication of new regulatory articles.
- July 2023: Sports Integrity Bill declaration
In this way, both businesses and individuals will be able to cope with the challenges of the Chilean gambling system.
Conclusion
The Chilean gambling environment is a good case of the complex body of law which has been developing over many years in an attempt to form the just and safe gambling. The changes which were introduced in 2023 represent a complete turnover in the industry’s development basically due to the legalization of online gambling and the introduction of strict regulatory requirements. During adaptation of the country’s gambling legislation, those who are willing to learn about all issues concerning betting sites in Chile and Chile sports betting must keep up to date with the recent alterations.