Chile takes steps to create a regulated gambling market

Chile’s government has published new proposals to establish new regulated market of gambling sector. The proposal has led to disagreements with senators who are demanding either a complete ban or a monopoly for lotteries operating in the country. On Monday, 26 October 114-page amendment was submitted. The government of President José Antonio Kast has announced plans to issue licenses to operators for a period of 5 years. Chile’s Senate will now also examine two competing amendments, brought earlier this month. One of them calls for a total prohibition against private companies that provide online gaming, while another would grant monopoly rights to the two existing gambling operators in Chile. As reported by Chilean media outlet Diario Financiero, the bills presented by the Chilean government stipulate that the license fee is fixed at 1,000 tax units (currently about $77,000 per year) and impose a gambling tax of 3% in addition to the value-added tax. Moreover, they prohibit advertising of gambling sites and promotional offers. Companies engaged in this business in Chile during the previous year are not eligible to apply for a license unless they place themselves in a transitional position with the authorities. On October 27, the Agrupación de iGaming Responsable (AGR) expressed its enthusiasm about the ideas put forward by the government but stated that a ban on advertising and promotions may result in consumers going to unlicensed venues. The association mentioned: A modern regulatory framework must not confuse protection with prohibition. Advertising should be regulated, not eliminated. The proposals made by the Chilean government are faced with two conflicting amendments in the Senate. One amendment proposes an outright ban on private operators providing online gambling services, the other amendment proposes to limit these services to existing operators in the country’s two lotteries. According to Senators Diego Ibáñez and Gastón Saavedra, registered operators should be given up to 24 months to stop operating. On the other hand, there is a proposal by Senator Paulina Núñez to reserve online gambling exclusively for Polla Chilena de Beneficencia and Loteria de Concepcion. The lotteries, in this case, would be allowed to provide the services they already have. In addition, the proposal will include the introduction of criminal penalties for illegal operators and presentation of measures for permanent blocking the sites. The Economy Committee in the Senate is still reviewing the amendments.