Chile’s Debate on Online Gambling Intensifies as Senators Propose Banning It

Chile’s online gambling debate has intensified as the government supports a regulated private market, while senators have introduced competing proposals that seek to either ban private operators or limit online gambling to the country’s established lotteries. What Does the Government Propose? Earlier this week, President José Antonio Kast’s government submitted a 114-page package of amendments, outlining a framework that would establish five-year licenses for private operators, introduce new taxes and strengthen player protection measures. Originally introduced in 2022, the bill is now in its second constitutional review in the Senate, following its approval in August 2025 by 27 votes to three, with five senators abstaining. Under the government’s plan, private operators would be eligible for five-year licenses and required to pay an annual fee of 1,000 monthly tax units, which is equivalent to about $77,000 at current rates. The proposed tax regime would include 19% VAT on the difference between stakes and winnings, alongside an additional 3% gambling tax. The framework would also ban advertising and promotional bonuses, while introducing default limits on player deposits and playing time. Companies that operated without a license in Chile during the preceding year would generally be barred from applying, unless they reached a transitional agreement with the authorities. What Are the Senate’s Counterproposals? While the Government’s proposal seems well thought out, it faces two counterproposals submitted by different senators. One proposal, put forward by Senator Paulina Núñez, would restrict online gambling to the country’s existing lottery operators, Polla Chilena de Beneficencia and Lotería de Concepción. Both operators would be prohibited from expanding their offerings with new gambling products. The proposal would also establish criminal penalties for unlicensed operators and introduce permanent website-blocking measures targeting illegal gambling platforms. However, perhaps inspired by Brazil’s President Lula banning gambling with his Provisional Measure 1,394, another proposal seeks to completely bar private gambling companies from operating in Chile. Submitted by Senators Diego Ibáñez and Gastón Saavedra, the proposal would impose a complete ban on private online gambling operators. Companies already registered with Chile’s tax authority would be given up to 24 months to cease operations. A platform would be deemed to operate in Chile if it accepts bets from users within the country, irrespective of the location of its servers or other infrastructure. Breaches of the proposed rules could carry prison sentences of six months to three years, as well as financial penalties, according to the proposal. Chile’s heated debates on gambling regulations are part of a wider phenomenon that seems to be sweeping Latin America. Aside from Brazil, Buenos Aires in Argentina is also considering banning gambling, similarly to what President Lula has done.