A bill submitted by Chile’s Ministry of Finance to the Senate Economy Committee would regulate online gaming platforms, Yogonet reported January 18. The bill was previously approved by the Chamber of Deputies.
According to Undersecretary of Finance Heidi Berner and Superintendent of Gaming Casinos Vivien Villagrán, the regulations would seek to create a safe environment for consumers, and achieve greater transparency for companies and revenues.
Currently the lottery and horse racing are legal in Chile.
The new legal architecture would require operators to be incorporated in Chile and identify their beneficiaries and give access to their systems to the Superintendence of Gaming Casinos and the Internal Revenue Service (SII).
The regulations would include severe sanctions for illegal operators and allow for the prosecution of illegal gambling. The online operators would be taxed by a value added tax (VAT) of 20 percent similar to how brick-and-mortar casinos are taxed. An additional 1 percent tax—which could be deducted—will be assessed to encourage responsible gaming.
Some of the money raised (2 percent of gross income bet on sports) will help finance sports through the National Sports Institute. However, players, sports officials, coaches, etc. will be prohibited from participating in such wagering.
The legislation provides for the creation of a National Responsible Gambling Policy for both online and physical gaming, to fight gambling addiction and establish rules for advertising and promotions.
The media will be banned from carrying ads or promotions for illegal platforms. Unauthorized platforms will not be allowed to have bank accounts in Chile and such transactions will be prohibited.
The regulations encourage physical casinos to apply for licenses to operate online platforms, through the creation of a corporation. They ban gambling by youth and require a proof of identity to have an account.
