Chile Proposes Strict Online Gambling Regulation and Advertising Ban
Chile.- 29 October 2026 | www.zonadeazar.com The Chilean Government has formally submitted legislation to the Senate proposing a new regulatory framework for online sports betting and gambling, introducing five-year licences, advertising restrictions, biometric identity checks and new tax obligations.
The proposal, entitled the Bill on Online Betting Regulation, Child Protection and the Prevention of Problem Gambling, seeks to establish a licensing system supported by enhanced regulatory supervision.
One of its most significant provisions is a comprehensive ban on gambling advertising and commercial incentives, including welcome bonuses and promotional offers designed to attract customers.
Government Submits a 114-Page Bill
The 114-page legislative proposal was signed by President José Antonio Kast and ministers Jorge Quiroz, Daniel Mas, May Chomalí, Fernando Rabat and Claudio Alvarado.
The document establishes the conditions under which businesses would be authorised to operate online gambling platforms in Chile.
Its objective is to create a framework governing digital gambling operations, taxation and consumer protection.
The bill must complete the parliamentary process before its provisions can become law.
Five-Year Licences and Annual Fees
The proposed legislation introduces a licensing framework for online betting operators.
Licences would remain valid for five years and require an annual fee of 1,000 Monthly Tax Units (UTM).
Companies seeking authorisation would need to comply with technical, administrative and regulatory requirements.
The framework aims to identify authorised businesses and strengthen the authorities’ ability to supervise their operations.
19% VAT and an Additional 3% Tax
The proposal establishes a specific taxation framework for licensed gambling companies.
Operators would be subject to 19% Value Added Tax (VAT), calculated on Gross Gaming Revenue (GGR).
GGR represents the difference between the total amount wagered and the prizes paid to customers during each month.
An additional 3% tax would also apply.
The government aims to bring online gambling into a formal taxation framework capable of recording and taxing digital betting activities.
Nationwide Gambling Advertising Ban
One of the proposal’s most restrictive elements is the prohibition of online gambling advertising throughout Chile.
The restrictions would apply to both licensed operators and unauthorised platforms.
Liability would extend to:
- Advertisers and contracting businesses.
- Advertising designers and content producers.
- Media companies and distribution platforms.
- Advertising intermediaries.
- Influencers and digital promoters.
The proposed framework seeks to reduce consumer exposure to gambling-related commercial communications.
Restrictions on Sports Sponsorships
The advertising ban would also affect commercial agreements between betting operators and sports organisations.
The bill includes transitional provisions for existing advertising contracts involving companies obtaining provisional licences.
These agreements could remain in effect for a maximum of one year, provided that advertisements are restricted to periods outside protected viewing hours for minors.
The measure could change the commercial strategies of sports clubs, competitions and other organisations maintaining partnerships with gambling operators.
Welcome Bonuses Would Be Prohibited
The legislation also proposes restrictions on promotional mechanisms used to attract and retain customers.
Prohibited practices would include:
- Welcome bonuses.
- Deposit bonuses.
- Financial incentives encouraging betting.
- Redeemable rewards linked to gambling participation.
- Promotions designed to increase customer retention.
The restrictions aim to prevent operators from using financial benefits to encourage additional gambling activity.
Mandatory Biometric Verification
The bill introduces enhanced identification and authentication requirements.
Gambling platforms would be required to implement stronger security mechanisms, including biometric identity verification, to confirm customers’ identities against official records.
The objective is to prevent unauthorised access and improve the supervision of gambling accounts.
The legislation would also introduce restrictions affecting particular categories of users.
Individuals Excluded From Registration
The proposal identifies several groups that would be prohibited from registering for online gambling services.
These include:
- Individuals serving custodial sentences.
- People listed on Chile’s National Register of Child Maintenance Debtors.
- Customers registered under self-exclusion schemes.
Operators would be responsible for enforcing these restrictions through the proposed identity verification mechanisms.
Deposit and Session Limits
The proposed regulatory framework introduces responsible gambling safeguards that would apply automatically to customer accounts.
These include periodic deposit limits and daily restrictions on gambling session duration.
The precise limits would be established under a future Responsible Gambling Regulation issued by the Ministry of Finance.
The regulation would be reviewed every four years.
The objective is to introduce preventive measures designed to reduce gambling-related harm.
Tax Regularisation for Existing Operators
The bill includes transitional arrangements for companies that previously offered online gambling services without authorisation.
As a general rule, a 12-month cooling-off period would prevent businesses that operated, advertised or offered unauthorised gambling services from obtaining a licence.
However, the proposal introduces an exception through a special tax regularisation procedure.
To qualify, operators would need to:
- Pay a special authorisation fee of 3,000 UTM.
- Demonstrate compliance with Digital VAT obligations.
- Declare and pay taxes relating to the previous 36 months.
The mechanism aims to support the transition towards a regulated market while addressing outstanding tax obligations.
Potential Settlement of Previous Tax Liabilities
Companies successfully completing the regularisation process could benefit from provisions concerning liabilities arising from previous tax breaches.
The bill provides for the termination of certain civil, criminal or administrative liabilities connected with those obligations.
The exemption would apply only under the conditions established by the legislation.
The objective is to encourage previously active operators to regularise their tax position.
Land-Based Casinos Could Offer Digital Betting
The legislation also creates opportunities for cooperation between land-based casinos and online gambling platforms.
Authorised casino venues would be permitted to introduce digital betting terminals or services within their premises.
However, these activities would need to operate through contractual agreements with properly licensed and certified online operators.
The provision could allow land-based casinos to expand their commercial offerings under the proposed regulatory framework.
Protecting Sports Integrity
The bill introduces restrictions aimed at preventing conflicts of interest in sports betting.
Athletes, coaches, technical staff, officials and shareholders would be prohibited from betting on sporting disciplines in which they directly participate.
The measure is designed to protect sporting integrity and reduce risks associated with the misuse of privileged information.
Fund for Problem Gambling Prevention
The proposal establishes a Problem Gambling Prevention and Treatment Fund to support programmes addressing gambling-related harm.
The Ministry of Health and the Ministry of Social Development would oversee its administration and the delivery of related services.
The fund would support prevention initiatives, treatment services and assistance for individuals experiencing gambling-related problems.
Industry Impact and Next Steps
The proposal represents another significant development in Chile’s legislative debate over online gambling regulation.
The proposed framework combines private-sector licensing with extensive commercial restrictions, taxation requirements and consumer protection mechanisms.
For international operators, the legislation establishes specific market entry conditions, while existing businesses would need to consider the proposed tax regularisation arrangements.
Advertising restrictions, taxation and identification requirements are likely to become important issues during the parliamentary debate.
For now, the measures remain part of a legislative proposal and have not yet become binding legal requirements.
Edited by: @fonta
