Chile's government proposes banning online betting advertising

Chile's government has presented new amendments to a bill regulating online betting platforms to the Senate's Economy Commission, according to the proposal as described in reports. The bill is in its second legislative stage in the Senate. The 114-page document is titled the bill on regulation of online betting, protection of children and prevention of gambling disorder, and was signed by President José Antonio Kast and ministers Jorge Quiroz, Daniel Mas, May Chomalí, Fernando Rabat and Claudio Alvarado. Finance undersecretary Sebastián Vallebona defended the proposal before the commission.

The central change is a total ban on advertising by online betting platforms, whether or not they hold an operating licence. The measure also covers bonuses, promotional offers and other financial benefits intended to attract users. Advertising contracts already in force with operators that choose to regularise would be subject to a transitional regime of up to one year, under certain conditions. Licensed platforms that breach the ban would face sanctions for the most serious infringements, including possible revocation of their licence.

The bill provides a six-month transitional licence for online betting platforms to regularise their status. To obtain it, they must pay 3,000 UTM and settle or agree a payment plan for VAT owed on digital services for the previous 36 months. Once regularised, they could obtain a definitive five-year licence at an annual cost of 1,000 UTM.

The amendments also change the tax structure. The government proposes an effective rate of 22%, made up of VAT and an additional specific tax of 3%, plus a 1% contribution for responsible gambling and the creation of a fund for prevention and treatment of gambling disorder. Official estimates put revenue above $100m in the first year and at $133m in the fifth, compared with $84m a year projected in the previous proposal.

Protection measures in the proposal include strengthened identity and age verification, a register of excluded persons, preventive gambling limits and tighter controls on access to platforms. It also sets administrative and criminal sanctions linked to illegal advertising and operation without authorisation.

Industry groups representing operators in the Chilean market welcomed some protection measures but questioned the absolute ban on advertising and promotions. The Agrupación Chilena de Plataformas de Apuestas en Línea (aPAL) highlighted the introduction of preventive responsible-gambling rules and the creation of the gambling-disorder fund, but warned that the restrictions could make it harder for users to tell licensed operators from illegal platforms. "La regulación protege solo a quienes juegan dentro de ella," the group said, arguing that regulated operators need to be able to make themselves known and compete with unauthorised offerings.

iGaming Responsable (AGR) also welcomed the market-entry requirements, identity and age verification and prevention measures. Its executive director, Sandra Kemp, said: "la publicidad responsable también puede informar, prevenir y ayudar a distinguir a los operadores autorizados de los ilegales". Both groups argue that a total ban could favour growth of the clandestine market by limiting licensed operators' ability to attract users. The industry proposes evaluating strict rules on content, frequency, scheduling and protection of minors as an alternative to an absolute restriction.

Vallebona told the Senate: "Hay una publicidad sin regulación y muy presente", adding that Chile has an obsolete criminal code without restrictions on betting. He said the aim was to move from a market out of control to a general prohibition and an exceptional licence with a high regulatory standard.