Chilean senators propose online gambling ban as licensing bill advances

Chile's government submitted a package of amendments to the Senate on 26 October that would create a licensing regime for online gambling operators, with new taxes, advertising restrictions and player-protection measures. Senators have put forward two rival proposals that would change the legislation: one would ban online gambling outright, the other would reserve the market for Chile's existing lottery operators. The Senate's Economics Committee must now consider the competing amendments.

The government's amendments would let operators seek licences lasting five years. On the gap between stakes and winnings, a 19% VAT charge would apply, with a further 3% tax on top. Promotional bonuses and advertising would be barred, and the package sets default limits on deposits and playing time.

Two senators, Diego Ibáñez and Gastón Saavedra, want the bill swapped for an outright prohibition. Their amendment reads: “It is prohibited to develop, operate, manage, offer, broker, or advertise, directly or indirectly, online gambling platforms that operate in Chile”. Commercial breaches would carry custodial terms ranging from six months to three years.

Senator Daniel Núñez has put forward a different plan: online gambling would be confined to the country's two lottery operators already in business. His text also targets bettors, penalising those who knowingly wager on illegal sites three or more times in a 90-day window.

Enforcement has already begun in Chile. Telecommunications authorities, acting on court rulings, told internet providers in September to block 42 gambling URLs.

Brazil's own ban, brought in through an executive measure signed by President Lula, took licensed online gambling offline on October 6, and it is being contested in the courts. Supreme Court Justice Luiz Fux ruled on Monday (October 26) that the prohibition would stay in place, and set a November 3 hearing for the government, gambling operators and football clubs to present their arguments.

Attention has turned as well to Argentina's Buenos Aires Province, where Senator Federico Fagioli has tabled a bill nicknamed the “Lula Law.” It would scrap the province's online licensing system, outlaw sports betting and online casino games, and keep traditional lotteries running. Competing with it is another bill that would instead strengthen the current framework, aimed chiefly at stopping minors from gambling.