Chile Senate committee advances bills to prohibit online betting
Regulation1 min read
Chile’s Senate Economy Committee approved two proposals that would prohibit online betting platforms, in a 3-1 vote with one abstention. The proposals would be merged at the next session and would amend the government’s bill, which seeks to regulate the market through licences; the proposed ban would also prohibit advertising, with exceptions for traditional operators, the national lottery and racecourses. Deputy Finance Secretary Sebastián Vallebona argued that a total ban would not contain the market and could leave users unprotected.
Chile’s Senate Economy Committee approved two proposals to prohibit online betting platforms, putting them in opposition to the government’s plan to regulate and tax the market. The vote was three in favour, one against and one abstention.
The proposals came from Senate president Paulina Núñez and senators Gastón Saavedra and Diego Ibáñez. They seek to amend the government’s bill, which is in its second constitutional stage and would establish a licensed market.
The proposals would prohibit the operation and administration of online betting in Chile, as well as advertising for the activity. Traditional operators including Polla Chilena de Beneficencia, Lotería de Concepción and racecourses would be exempt.
Núñez’s proposal provides for prison sentences of up to 15 years, sanctions in organised crime cases and permanent court-ordered blocking of platforms. Saavedra and Ibáñez propose prison sentences and fines for those who benefit from the activity, as well as mandatory blocking of access and payment methods.
Deputy finance secretary Sebastián Vallebona defended the government’s regulatory proposals. The government argued that an outright prohibition would not effectively contain the market and could leave users unprotected. Its proposal includes an effective tax rate of 22% including VAT and an annual charge of 1,000 UTM per licence.
The prohibition proposals will be merged at the committee’s next session.