Online Gambling Legislation Advances in Chile: Proposed Regulations Detailed
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Posted on: March 9, 2022, 06:04h.Last updated on: March 9, 2022, 12:42h.
Erik Gibbs Read MoreiGaming Tonight
Chile's interest in online casinos is heating up! Legislation introduced this week paves the way for a structured online gambling market once approved.
The Chilean government dropped a bombshell on Monday, proposing a bill to regulate online gambling. As drafted, operators in the virtual casino and sportsbook realm would cough up a hefty 20% of their earnings in taxes.
For every Chilean winner, the government expects a 15% cut. In the first year alone, this strategy could pile up a neat US$9.25 million in taxes. By the fifth year, that figure could skyrocket to a whopping US$48 million.
In a move that's been a century in the making, the new Chilean administration under President Gabriel Boric laid out a plan to transform the under-the-radar online betting platforms into a legitimate sector. Today, these illegal activities have become major sponsors for domestic sports clubs.
Chile Goes Full Throttle on iGaming
Under current regulations, only state-run La Polla Chilena de Beneficencia, the Lottery of Concepción, horse racing, casinos overseen by the Superintendency of Gaming Casinos can partake in the gaming industry.
However, the online sector has infiltrated Chile like a sneaky virus. According to government data, about 900 websites are available for online game enthusiasts across the country.
This sector is believed to generate between US$130 million and US$170 million yearly. The bill projects that based on this figure, annual tax collections from online gambling could reach about US$50 million.
The initiative stipulates that only platforms that possess a general five-year license or a temporary 60-day permit can operate within Chile. The legal gambling age is set at 21, and players must provide a RUN (Identification Number) for account creation.
New Gaming Sheriff in Town
The Superintendency of Casinos will handle regulation, but here's the twist: it will be renamed the Superintendence of Casinos, Betting and Games of Chance. Platform operators will be required to hold a guarantee fund for the money at stake and have policies in place for handling bankruptcy.
The Ministry of Finance is tasked with creating a National Responsible Online Gambling Policy, while operators must allocate 1% of their annual income to promoting responsible gaming initiatives. Sportsbook operators will also budget 2% of their annual income for the national governing federation of their sport.
There's a fee of 1,000 UTM (tax units) per year for each general license in operation. If the license is temporary, the fee drops to 100 UTM. A UTM currently stands at CLP$54,171, making the respective fees approximately US$66,850 and US$6,685 annually.
Stay tuned as this policy developing story unfolds!
- The Chilean government's proposed bill to regulate online gambling establishes a 20% tax on operators' earnings, which could generate up to US$48 million annually by the fifth year.
- The legislation aims to transform Chile's under-the-radar online betting platforms into a legitimate sector, with a projected annual tax collection from online gambling reaching US$50 million based on current estimates of the online gaming sector's annual revenue.
- Operators seeking to run online gambling platforms in Chile must possess a general five-year license or a temporary 60-day permit, and players must be at least 21 years old with a valid RUN to create an account.
- The newly renamed Superintendence of Casinos, Betting and Games of Chance will handle regulation, requiring operators to hold a guarantee fund for the money at stake and have policies in place for handling bankruptcy.
