ACCJ calls Chile online gambling a major illicit market
Regulation2 min read
The ACCJ said online gambling is one of Chile’s most significant illicit economic activities and called for a law defining who may operate and under what conditions. A study involving the association estimated the online casino market at US$625m a year, while illicit markets overall were estimated to move more than US$5.7bn annually.
Chile needs a law defining who can operate online gambling platforms and how they should be supervised, Cecilia Valdés, executive president of the Chilean Casino and Gaming Association, said. She said illegal online gambling poses risks to users and minors and presents challenges for preventing money laundering.
A study backed by Chile's Confederation of Production and Commerce estimated that online casinos accounted for $625m a year, making them the highest-value illicit market it examined. The study estimated that illicit markets overall generate more than $5.7bn a year and cause annual tax revenue losses of more than $1.5bn.
Valdés said the lack of a legal framework prevents authorities from knowing who is behind online platforms, where their funds come from and how to trace their operations. She said businesses that meet tax, labour and regulatory obligations must compete with operators outside the law, while consumers face products and services without clear protection or complaint mechanisms. Valdés called for coordinated state action that avoids administrative measures sending contradictory signals about activities operating outside the law.
Chile's licensed casino sector says regulation would distinguish authorised operators from illegal platforms, improve consumer protection, support tax collection and establish clearer anti-money-laundering controls.
The study proposes 45 measures covering illicit trade, illicit finance and offences involving raw materials. It includes measures to close regulatory and enforcement gaps, strengthen state capacity and improve public-private coordination. The ACCJ was among 30 trade associations that participated in preparing the study, alongside about 70 experts and business representatives.
The study's launch was led by Susana Jiménez, president of the Confederation of Production and Commerce, and featured an intervention by Economy and Mining Minister Daniel Mas. Valdés later joined a panel with José Manuel Mena, president of the Association of Banks and Financial Institutions; Pilar Lizana, the study's executive coordinator; and Gonzalo Mardones, criminal coordinator at the Internal Revenue Service. María José Naudon, dean of the School of Government at Adolfo Ibáñez University, moderated the discussion.