Chile: Baeza Warns Blocking Could Reduce Digital VAT Revenue
Chile.- 8 September 2026 | www.zonadeazar.com Carlos Baeza, spokesperson for the Agrupación de Plataformas de Apuestas En Línea (aPAL), has warned that the blocking of online betting websites in Chile could affect the operating performance of companies covered by the measure and consequently reduce expected Digital VAT revenue.
He also questioned the scope of a recent Santiago Court of Appeals decision connected with the blocking of betting platforms.
Challenge to Scope of Ruling
Baeza argued that the latest decision exceeds the court’s jurisdiction.
He said the original action filed by Lotería de Concepción requested the blocking of 12 URLs, which was the measure granted in September 2025.
In his view, subsequently extending that list goes beyond the original request.
Operational Impact
Baeza said blocking could affect the operations of the 12 companies included in the 2025 ruling.
Any reduction in activity could directly affect their operating results and Gross Gaming Revenue (GGR).
That impact could subsequently affect tax receipts.
Potential Effect on Digital VAT
According to Baeza, a reduction in operators’ GGR could result in lower Digital VAT revenue for the Chilean State.
The aPAL spokesperson said he hoped any such impact would be as limited as possible.
Compliance With Resolution 69
Operators represented by aPAL are currently focused on complying with Resolution 69 issued by Chile’s Internal Revenue Service (SII).
Baeza confirmed that companies are working towards paying Digital VAT in October.
He described the resolution as the clearest direct instruction issued to date by the Chilean State to the online betting industry.
Tax Obligation in Force Since 2020
Baeza noted that Chile’s Digital VAT legislation has been in force since June 2020.
The rules include companies without a domicile or residence in Chile among those required to pay the tax.
International online betting platforms fall within that category.
Political Debate Over the Tax
Chile’s Chamber of Deputies recently expressed opposition to charging VAT to online platforms.
However, Baeza argued that implementation of Digital VAT is fundamentally a technical rather than political issue.
He also said the parliamentary position does not necessarily amount to opposition to the broader process of regulating online betting.
Judicial Order and Legal Scope
Baeza acknowledged that telecommunications companies must comply with the Supreme Court ruling.
However, he argued that a judicial decision is not legislation and should not be extended to companies or websites that were not parties to the original proceedings.
Potential Legal Action
aPAL does not currently intend to bring judicial or administrative proceedings to reverse the situation.
However, Baeza said operators affected by Subtel blocking measures that were not among the 12 sites covered by the September 2025 judgment would have legitimate grounds to pursue available legal remedies.
Online Gambling Regulation Bill
Meanwhile, legislation to regulate Chile’s online gambling market remains before the Senate.
Baeza said the technical working group on the bill has recently concluded its work.
The next stage will involve setting a deadline for new amendments before detailed consideration begins in the Economy and Finance committees.
According to Baeza, that stage should take place before the end of 2026.
Polla Chilena Complaint
Baeza also addressed a complaint filed by Polla Chilena alleging money laundering and criminal association.
He said the new action relies on the same grounds as a previous complaint filed in January 2023.
According to Baeza, that earlier investigation was closed in April 2025 following a decision by prosecutors not to proceed.
Statements
Carlos Baeza said that if blocking affects the activity of the 12 operators included in the ruling, their operating results and GGR could decline, potentially reducing Digital VAT receipts.
He also stressed that operators committed to progressing towards regulation are working to comply fully with SII Resolution 69.
Industry Context
Chile is currently facing an increasingly complex debate over the legal and tax treatment of online betting platforms.
While courts and Subtel move ahead with blocking measures, the SII has introduced procedures for Digital VAT payments and Congress continues to consider legislation establishing a specific regulatory framework.
The combination of these measures is creating tension between enforcement, taxation and future market regulation.
Next Steps or Impact
Operators covered by Resolution 69 are preparing to comply with Digital VAT obligations in October.
At the same time, court-ordered blocking measures and debate over their scope will continue.
The Senate is also expected to resume detailed consideration of online betting legislation in the coming months, a process that will be central to establishing a definitive framework for the industry in Chile.
Editó: @fonta
