Chile: Senate Committee Backs Proposals to Ban Online Gambling
Chile – 12 November 2026 – www.zonadeazar.com The Chilean Senate’s Economy Committee has approved two legislative amendments seeking to prohibit private online betting platforms, substantially changing a bill that originally proposed establishing a regulated market through licensing and taxation.
The vote, held on 9 November 2026, resulted in three votes in favour, one against and one abstention.
The proposals introduce different prohibition mechanisms, criminal penalties and restrictions on digital services used by betting operators.
The decision marks a significant change in Chile’s legislative debate, although the prohibition has not yet become law and must proceed through further parliamentary stages.
Two Proposals to Prohibit Private Platforms
The approved amendments were introduced by two groups of senators.
The first was submitted by Paulina Núñez, President of the Senate and a member of National Renewal (RN), alongside fellow party member María José Gatica.
The second was introduced by Gastón Saavedra, Chair of the Economy Committee and a Socialist Party senator, together with Diego Ibáñez, representing the Broad Front.
Both initiatives seek to prevent the establishment of a private online betting market, although they differ in their enforcement mechanisms and penalties.
Saavedra indicated that the two texts would be consolidated at the committee’s next meeting.
Saavedra and Ibáñez Amendment
The amendment introduced by Gastón Saavedra and Diego Ibáñez proposes replacing the existing bill entirely.
The revised text would prohibit:
- Operating online betting platforms.
- Managing or administering digital betting services.
- Offering betting services to consumers located in Chile.
- Advertising online betting platforms.
The proposal also establishes that any platform accepting bets from Chile would be considered to be operating in the country, regardless of where its servers or domains are located.
This provision aims to prevent companies from using international technological structures to circumvent domestic restrictions.
Exemptions for Lotteries and Authorised Operators
The proposal includes exemptions for certain organisations currently authorised by law to conduct gambling activities.
These include:
- Polla Chilena de Beneficencia.
- Lotería de Concepción.
- Authorised racecourses.
- Legally licensed land-based casinos.
These exemptions would allow activities expressly authorised under Chilean legislation to continue.
However, private online betting platforms would be excluded from the licensing framework originally under consideration.
Prison Sentences and Financial Penalties
The Saavedra and Ibáñez proposal establishes penalties for individuals or companies violating the prohibition for financial gain.
Proposed sanctions include:
- Prison sentences ranging from 541 days to five years.
- Fines of 200 to 1,000 Monthly Tax Units (UTM).
The UTM is an inflation-linked reference unit used in Chile to calculate certain tax obligations and financial penalties.
The bill also establishes responsibilities for businesses facilitating access to, or transactions involving, prohibited betting platforms.
Blocking Websites, Applications and Payments
One of the reform’s central components involves mechanisms designed to prevent online betting platforms from operating.
The proposal introduces obligations for:
- Internet service providers: blocking access to prohibited platforms.
- Application stores: preventing downloads of applications associated with unauthorised operators.
- Payment service providers: restricting transactions involving these platforms.
The measures aim to limit both technological access and financial mechanisms used by betting companies.
Implementation would require the participation of several stakeholders across the digital ecosystem.
Núñez and Gatica Propose Stronger Penalties
The amendment introduced by Paulina Núñez and María José Gatica also rejects establishing a private licensing market.
However, it proposes additional enforcement tools, including permanent court-ordered blocking of illegal platforms and restrictions on their payment systems and advertising.
In the most serious cases, penalties could reach:
- Up to 15 years in prison.
- Fines of up to 10,000 UTM.
Aggravating circumstances include deliberately targeting minors and failing to comply with final court orders requiring websites to be blocked.
Government Previously Proposed Regulation
The Economy Committee’s decision contrasts with the proposal submitted by the Government of President José Antonio Kast.
On 26 October 2026, the Executive presented amendments intended to allow private operators to conduct business under a licensing and taxation framework.
The proposed model included:
- Operating licences valid for five years.
- A 19% VAT on the difference between stakes received and prizes paid.
- An additional 3% levy.
- Specific regulatory obligations for operators.
The approval of the replacement amendments displaced the Government’s proposal during the Economy Committee’s discussions.
The administration had supported regulation as a means of introducing oversight, collecting tax revenue and establishing consumer protection mechanisms.
Senators Divided Over Prohibition
The discussion revealed differing views regarding how online betting should be addressed.
Diego Ibáñez defended reopening the debate, referring to a Chilean Supreme Court ruling declaring certain online betting operations illegal.
Meanwhile, independent Senator Matías Walker opposed the proposed ban.
Walker argued that a regulated system would allow authorities to require licences, impose tax obligations and supervise operators’ activities.
In his view, preventing the creation of a regulated market could benefit companies that have never sought to regularise their operations.
The disagreement reflects two approaches: prohibiting private platforms or allowing them to operate under government supervision.
Protecting Minors and Preventing Gambling Harm
Consumer protection also featured prominently during the discussions.
Deputy Finance Minister Sebastián Vallebona warned that rejecting the Government’s proposal could limit the tools available to protect minors and prevent gambling addiction.
National Renewal Senator Manuel José Ossandón challenged that argument during the committee session.
The exchange highlighted differing interpretations of the potential social effects of prohibition and regulation.
While some lawmakers consider it necessary to prevent private operations, others argue that licensing would enable authorities to implement stronger safeguards and preventive measures.
Next Steps in Congress
The online betting bill, identified as Bill No. 14,838-03, was previously approved by the Chamber of Deputies and received approval in principle from the Senate.
It is currently undergoing its second constitutional stage, with the Economy Committee reviewing individual amendments.
The next steps include:
- Consolidating the two approved prohibition proposals.
- Continuing the detailed examination of the legislation.
- Referring the text to the Senate Finance Committee.
- Proceeding through the remaining parliamentary stages.
Consequently, the 9 November vote does not establish a definitive prohibition but changes the direction of the bill during its legislative consideration.
Impact on the Gambling Industry
The decision creates additional uncertainty for international companies interested in entering Chile’s market through a licensing framework.
The possibility of prohibition also affects the commercial outlook for technology suppliers, sportsbook operators and businesses providing related digital services.
Meanwhile, the exemptions proposed for certain legally authorised organisations could maintain significant differences between segments of the gambling market.
Industry participants will need to monitor the bill’s progress to determine whether Chile ultimately adopts a prohibition model or returns to the alternative of licensing and taxation.
Approval of the two amendments marks a turning point in Chile’s gambling debate: lawmakers must determine whether to permit a licensed private online betting market or establish a prohibition regime supported by criminal penalties and technological blocking measures.
Editó: @fonta
