Chilean Government Blocks Access to Sports Betting Sites
Access to all gambling websites, including sports betting websites, was restricted by the Chilean government. The South American nation’s Senate and Congress have decided to give the 2022 bill Ley N°035/2022 another look.
Last year, a bill to legalize online gambling wasn’t successful in passing, therefore, the Chilean Senate and Congress have started work on amending the country’s gambling laws. Ley N°035/2022, which was introduced at the beginning of March 2022 and contains provisions to govern Internet gambling, is still awaiting examination by the two houses.
Lawmakers had previously reached a consensus on a framework for licensing, how to interpret gambling on the web, and a planned gross income tax of 20%. But last year, while awaiting responses from other agencies addressing technical requirements, fines, and legal definitions, the bill languished in the Senate Economy Committee.
The Bill Was to Break Sports Betting Monopolies
While waiting for new laws to be established, the Supreme Court supported a legal challenge from current monopoly operators requesting that authorities classify online gambling as unlawful until it is. This prevented access to gambling websites. The bill would break the monopolies held by Teletrak Chile (pari-mutuel horse racing), Loteria Concepción, and Polla Chilena, which manages football pools. However, they are requesting protections for their companies.
The new law must contain a 12-month cooling-off period for operators who have engaged in grey market activity, following a ruling from the Supreme Court. International companies like top bookmakers Betano and Betsson contend that Chilean law doesn’t specifically forbid online betting; nonetheless, the regulator, the SCJ (Superintendencia de Casinos de Juego), believes that the offer is unlawful in the absence of clear legislative control.
Until today, access was blocked for 23 platforms only.
What Was Approved by New Gambling Regulation in 2022?
The Chamber of Deputies of Chile approved a gambling regulation bill without amendments in 2022, as we said.
The law includes online gambling licensing, increased regulation, and a 20% tax on income. It will also criminalize black market transactions, protect responsible gambling, and regulate advertising and promotions.
Licensees will have to pay $73.1 thousand per year for the right to operate. The proposed legislation was sent to the Senate for consideration, where there already was debate over lowering the tax rate.
