👻 Chile🇨🇱: 35% of the country’s gambling revenue comes from online casinos as regulators move toward tighter oversight

👻 Chile🇨🇱: 35% of the country’s gambling revenue comes from online casinos as regulators move toward tighter oversight

As in many Latin American countries, online gambling in Chile has operated within a limited regulatory framework, unlike more structured markets such as Brazil🇧🇷. However, Chilean authorities appear to be introducing new mechanisms to strengthen oversight, improve tax compliance, and bring greater control to the sector.

➡️ The numbers: according to a study by the Center for Public Studies (CEP), unlicensed operators generated approximately USD 473 million in revenue during 2025. Had these operators been licensed, the government would have collected around USD 94 million, based on the country's 20% gross gaming revenue (GGR) tax.

➡️ Current regulatory model: Chile’s traditional gambling framework was designed primarily for land-based operations and is based on individual authorizations, on-site supervision, and territorial restrictions. This model faces limitations when applied to the digital environment, which operates across borders, relies on advanced technology, involves significant advertising activity, and provides direct access to consumers.

➡️ Regulatory approach: although the Supreme Court ruled that unauthorized online betting is illegal, the Internal Revenue Service (SII) introduced a mechanism allowing foreign operators to register and pay VAT on transactions conducted in Chile. Initial industry participation, however, remained limited.

➡️➡️ New measure: on July 15, the regulator implemented a VAT liability transfer mechanism. Under this framework, when an operator fails to comply with its tax obligations, responsibility for collecting and paying VAT may be transferred to the payment service provider processing the transactions.

➡️➡️➡️ Early impact: during the first two days following implementation, 25 gambling companies applied to register under the simplified VAT regime. At the same time, 10 additional companies, previously identified by the tax authority, shifted tax liability to their payment partners, which will now be required to pay the 19% VAT on every player transaction.

➡️ Context: the use of payment providers as a tool for enforcing tax compliance represents a growing regulatory trend in markets where gambling is subject to strict controls, but where international operators continue to offer services outside traditional licensing frameworks. Similar mechanisms could eventually be adopted in other jurisdictions facing comparable challenges.

#news #Chile #gambling

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