(short): Full legalization of online gambling (Chile)

Full legalization of online gambling in Chile

Introduction

Chile's online gambling market is at a tipping point. On August 13, 2025, the Senate approved a general bill on the regulation of betting platforms and online games and sent it for detailed revision to the joint commissions of Economics and Finance. The document declares the goals of protecting players (especially minors), transparency of the origin of funds, the formation of a competitive market and the growth of budget revenues.

In parallel, on September 30, 2025, the Chilean Supreme Court ordered Internet providers to block access to unlicensed online casinos and betting sites, confirming that gambling on the network without special permission is not allowed by law. This decision strengthened the "standby mode" before the adoption of the new law.

Historical context: from the "gray" market to the legal framework

Since 2023, online betting and casinos in Chile have actually developed in the "gray zone": users played en masse on international platforms, but local licensing did not exist. In 2025, the Senate took a step towards changing this reality, and the Supreme Court at the end of September 2025 fixed the course towards crowding out unlicensed sites (through locks at communication providers) before the launch of the permit regime.

What "full legalization" means

• Law and by-laws defining the types of online games/bets and the rules for their conduct.
• Licensing of operators with clear admission criteria and regulatory supervision (the role of supervision is based on the existing architecture for regulating gambling in the country, including Superintendencia de Casinos de Juego).
• Fiscal model: special tax for online operators and targeted deductions for responsible play. At the stage of passing through the Senate, a special tax rate of 20% and an additional 1% on responsible game initiatives were discussed.
• Player protection: age verification tools, self-exclusion, limits, RNG/algorithm certification and coefficient transparency. These goals are directly highlighted by the Ministry of Finance when presenting the bill in the Senate.
• Enforcement and enforcement: blocking unlicensed sites (through providers), suppressing payments to illegal operators, fines and liability. The blockages have already been ordered by a Supreme Court decision; the bill also aims to limit payment flows in favor of illegal immigrants.

Licensing and operator requirements

Multi-level market access is expected: international and local companies will be able to obtain Chilean licenses subject to KYC/AML, technical certification, data storage and reporting, as well as responsible gaming rules. The supervisor will monitor the certification of the randomness and honesty of games and coordinate with the prosecutor's office to combat illegal activities and laundering.

Taxes and budget revenues

The project provides for a special tax for online operators (20% was discussed) and an additional contribution for a responsible game (1%). The Ministry of Finance estimates long-term additional budget revenues after the law enters into full force - about 84 billion Chilean pesos per year (in "mode").

Consumer rights and responsible play

The vector of the law is the protection of minors, vulnerable groups and conscientious players. This implies strict verification of identity, restrictions on deposits and time, access to self-exclusion tools and risk communication, as well as strict standards for advertising and sponsorship of sports clubs. The Ministry of Finance formulated these goals as basic when promoting the bill.

Payments and locks

The combination of measures - blocking domains and payment flows - is the key to crowding out illegal supply. The Supreme Court has already ordered communication providers to block access to the black list of domains, and the bill provides for pressure on payment intermediaries to stop transactions with unlicensed sites.

Economic and market effects

Legalization should bring significant momentum out of the shadows, raise player protection standards, and create a predictable environment for international investment. At the discussion stage, estimates of a multimillion-dollar audience and billions of dollars in turnover circulated without taxation were heard - it was on them that the new fiscal framework was aimed.

Transition period: status as of October 12, 2025

As of today, the law has not yet been finally adopted: it is approved in general by the Senate and is being finalized by the commissions, where amendments are being made and the final architecture is being clarified. Until the law comes into force, there are judicial blocking of unlicensed sites. This means that "full legalization" is the immediate prospect, but de jure it will be completed only after the final passage of the bill and the publication of by-laws.

Risks and challenges

Regulatory distortions (too high tax rates or unnecessary entry barriers) can leave some demand in the gray zone.

Technical execution of locks and financial filters will require constant updating of lists and coordination with payment systems.

Balancing the interests of sports and sponsorship with advertising restrictions is a separate sensitive area, requiring clear rules and transitional periods.

Chile moved from discussion to action: the general approval verdict of the Senate on the bill and the tough position of the Supreme Court against illegal sites create conditions for the complete legalization of online gambling - through licenses, taxes and player protection. It remains to finalize the text in the commissions and launch by-law mechanisms - after which the market will receive transparent and uniform rules of the game.

• Ministerio de Hacienda de Chile: on the approval of the bill by the Senate 13. 08. 2025 and regulatory goal setting.
• Senado de Chile: voting results (27 in favor, 3 against, 5 abstained), sent to the commissions.
• Chile's Supreme Court: Decision to block unlicensed sites 30. 09. 2025.
• The discussed tax architecture (20% special tax + 1% on responsible play) and measures against illegal payments.
• SCJ activities and coordination to combat illegal gambling.