Chilean Online Casinos Challenge Proposed Advertising Ban
Chile.- 29 October 2026 | www.zonadeazar.com Chile’s leading online betting associations have expressed concern over government amendments to legislation intended to regulate the sector.
The Chilean Association of Online Betting Platforms (aPAL) and the Responsible iGaming Association (AGR) welcomed the introduction of a regulatory framework and measures to prevent problem gambling, but challenged proposals to prohibit advertising, bonuses and commercial promotions.
According to the organisations, these restrictions could make it harder for consumers to identify licensed operators and indirectly benefit platforms operating outside the regulated market.
Government Introduces New Amendments
The Chilean Government has submitted new amendments to legislation intended to establish the country’s first dedicated licensing framework for online betting platforms.
The proposals were discussed by the Senate’s Economy Committee, where Sebastián Vallebona, Undersecretary of Finance, outlined the principal changes.
They include a proposed ban on online betting advertising, restrictions on commercial incentives and additional consumer protection measures.
The legislation remains at its second constitutional stage, meaning the provisions must still undergo parliamentary scrutiny and approval.
Advertising Ban Would Apply to All Operators
One of the most controversial proposals would introduce a comprehensive prohibition on advertising by online betting platforms.
The restriction would apply both to companies holding an operating licence and to businesses operating without authorisation.
The amendments would also extend responsibilities to different participants in the advertising supply chain, including those commissioning, producing, arranging or distributing promotional material.
The Government aims to reduce consumer exposure to gambling advertising, while industry associations have raised concerns about the consequences for licensed operators.
aPAL Warns About Unlicensed Gambling
The Chilean Association of Online Betting Platforms welcomed the Government’s progress towards establishing a dedicated regulatory framework.
However, it questioned the proposal to prevent licensed businesses from advertising their services or distinguishing themselves commercially from illegal operators.
According to aPAL, such restrictions could make it more difficult to encourage customers to migrate towards companies subject to regulatory supervision.
The association argues that future legislation should enable consumers to identify operators complying with consumer protection, taxation and responsible gambling obligations.
AGR Also Questions the Restrictions
The Responsible iGaming Association expressed similar concerns regarding the proposed amendments.
The organisation supports clear rules governing digital gambling platforms but warns that a comprehensive advertising and promotions ban could undermine competition within the licensed market.
In its view, the regulatory framework should enable customers to distinguish between businesses meeting legal requirements and those offering gambling services without authorisation.
Both associations agree that consumer protection should remain a central objective of the reform.
Bonuses and Promotions Would Also Be Prohibited
The Government’s proposals extend beyond traditional advertising.
The amendments would also prohibit bonuses and other incentives designed to attract customers, even where they are not promoted through advertising campaigns.
This would affect commercial strategies commonly used by online betting operators.
Industry associations argue that such restrictions could reduce licensed operators’ ability to compete against websites that disregard regulatory requirements.
However, these provisions remain under parliamentary consideration and have not yet become effective under the proposed licensing regime.
Protecting Minors and Preventing Problem Gambling
The industry associations have welcomed proposals designed to protect minors and reduce gambling-related harm.
Measures under consideration include:
- Stronger identity verification procedures.
- Preventive deposit and gambling time limits.
- Early identification of potentially harmful gambling behaviour.
- Self-exclusion mechanisms.
- Temporary restrictions for customers displaying signs of risk.
These requirements aim to establish stricter operating conditions and expand operators’ responsibilities.
The debate centres on combining these protections with a licensed market capable of attracting customers away from unauthorised platforms.
Proposed Fund for Problem Gambling Prevention
Another element welcomed by the industry is the proposal to establish a Problem Gambling Prevention and Treatment Fund.
The mechanism would support programmes focused on prevention, research and treatment for people experiencing gambling-related harm.
The proposal envisages the involvement of public authorities responsible for health and social development.
Industry associations believe these measures could contribute to a regulatory system focused on consumer protection.
Debate Over Market Channelisation
A central argument raised by the associations concerns channelisation: the proportion of gambling activity conducted through licensed operators rather than illegal platforms.
According to aPAL and AGR, a complete advertising ban could prevent newly licensed businesses from making their services known to potential customers.
This could benefit websites that do not comply with advertising restrictions or consumer protection requirements.
The argument reflects a broader issue in online gambling regulation: introducing effective safeguards while ensuring that authorised operators can compete with unlicensed alternatives.
Next Steps in the Senate
Chile’s online betting regulation bill was originally introduced in 2022 and remains under consideration in Congress.
The new amendments must be examined by the Senate’s Economy Committee before the legislation can advance.
Outstanding issues include the scope of advertising restrictions, the treatment of bonuses and promotions, and the requirements for obtaining operating licences.
Industry associations are seeking to have their concerns considered during the legislative process.
Industry Impact and Outlook
The Government’s proposed amendments represent another significant development in Chile’s debate over online betting regulation.
While the administration is seeking stricter controls on advertising and promotions, aPAL and AGR argue that a comprehensive ban could make it harder to distinguish authorised operators from illegal platforms.
The central issue is how to protect consumers and prevent gambling-related harm without undermining the transition towards a regulated market subject to government oversight.
For now, the proposed restrictions remain under discussion, and their final scope will depend on decisions taken by Chile’s National Congress.
Edited by: @fonta
