The nation of Chile has unveiled its inaugural online gaming legislation, which will formally introduce and govern online gambling within its borders.
The Chilean Ministry of Finance initially revealed plans to legalize internet gambling in February of 2021, aiming to present a formal proposal during the first three months of that year.
However, the proposed legislation was not presented in 2021.
The recently released bill mandates that all Chilean gambling entities must secure a general permit, valid for a five-year period. It suggests, however, that operators seeking to provide online gambling services must obtain a distinct online gambling license that is not subject to renewal.
The bill outlines the government’s intention to establish objective licensing criteria, rather than a monopolistic structure or a bidding process, citing the “adaptability required for the growth of emerging industries,” which are “inherently in a state of constant evolution.”
The tax rate is set at 20%. From the generated tax revenue, a sum of $50 million will be allocated to social initiatives.
Licensed operators are permitted to offer online versions of any game type currently authorized under gambling regulations, with the exception of lotteries.
This legislation also designates the Chilean gambling oversight body, the Superintendencia de Casinos de Juego, as the governing authority for the online gambling sector. The agency’s name will be updated to encompass gambling and games of chance. To secure an online gambling permit, operators must adhere to all directives issued by the regulatory body.
To promote responsible gambling practices, the bill stipulates that individuals under the age of majority and those who have self-excluded from gambling cannot participate in online gambling activities.
Online betting cannot be targeted at young people, and imagery or graphics that might lure minors into wagering cannot be employed in gambling advertisements. Betting on credit will likewise be prohibited.
Operators are further required to contribute a minimum of 1% of their annual gross income to projects that support responsible gambling initiatives.
Sign up for the iGaming newsletter.