The government of Chile is considering a new proposal to the bill to regulate online gambling platforms that would increase taxes on online platforms to 38.2 percent, Yogonet reported July 12.
In June the government-supported bill moved forward, including changes that had been approved by the Economy Committee of the Chamber of Deputies. Among the proposals was an increase in the tax on online operators, that, with the new addition of VAT (valued added tax) would raise the total to 38.2 percent, making Chile’s taxation rate on online gaming one of the highest in the world.
Members of the gaming industry warn the high rates could drive consumers into the black market.
Carlos Baeza, who represents the online platforms Betsson, Coolbet, Latamwin and Betano, spoke to lawmakers recently, where he declared, “The changes made by the current government are so profound that one could speak of a new initiative, very different from the one installed by former President Sebastián Piñera just days before the end of his term. Chile automatically becomes a very unattractive country for prestigious online operators to come and set up in.”
The original tax proposed was a base gaming tax of 20 percent, plus 1 percent for responsible gambling and 2 percent for sports federations, for a total of 23 percent. Even that was considered high, said Baeza during an interview with Yogonet in 2022, who added that 12-15 percent was more conducive to growing the sector.
