Industry concerned by slow Chile online gambling regulation

Frustrations Mount Over Slow Progress in Chile’s Online Gambling Regulation

Chile’s journey toward online gambling legalization took a promising turn in December 2023 when the Chamber of Deputies approved a bill aimed at regulating iGaming. However, since that pivotal moment, progress has stagnated, much to the disappointment of Cecilia Valdés, President of the Asociación Chilena de Casinos y Juego (ACCJ).

The bill has become ensnared in the Senate, where ongoing discussions in the Finance Committee have stalled further advancements. Critical issues, including tax structures and institutional enforcement, are under review, yet a lack of political will has rendered the initiative inactive for over a year. Despite public declarations of support from government officials, the urgency once associated with the bill has dissipated. Valdés notes, “The recent removal of the urgency status indicates a troubling lack of commitment from both the executive and legislative branches.” She continues, “Technical complexities, divergent opinions, pressure from informal operators, and existing legal ambiguities have compounded the delay.”

Could 2025 Mark a Turning Point for Online Regulation in Chile?

Chile finds itself in a crucial geographical spot within the blooming Latin American gambling market. Neighboring countries like Brazil and Peru have successfully initiated online regulations since early 2024. Recent legislative changes in Paraguay further signal a shift toward a more open betting landscape in the region.

The concern surrounding Chile’s stalled online regulations is palpable; without swift action, the market risks falling prey to illegal operators that have been marginalized in other nations. Valdés optimistically suggests that 2025 could be transformative: “A realistic timeframe, given the current pace of Chilean legislation, would see the bill pass sometime in 2025—assuming there is decisive political will.” However, she warns, “This year is also an election year, which may introduce further delays.”

The Untapped Potential of Online Gambling in Chile

Valdés is confident that Chile can compete alongside Peru and Brazil in developing a robust regulatory framework for online gambling. The country boasts significant digital accessibility, widespread banking facilities, and high smartphone penetration, alongside a vibrant sports betting culture.

“By reforming and strengthening regulations, Chile can elevate itself to one of the premier markets in Latin America, akin to Colombia and Brazil, potentially generating hundreds of millions in annual revenue while establishing a benchmark for responsible and transparent gaming,” she asserts.

A recent study by Yield Sec approximated the Chilean online gambling market’s value at $3.1 billion in 2024, with potential tax revenues from a regulated landscape reaching $800 million annually. Valdés emphasizes that effective regulation will also enhance consumer protection, enforce responsible gaming standards, and curtail illegal operations.

Furthermore, H2 Gambling Capital forecasts that the land-based gaming sector in Chile could see a gross win of $792.3 million by 2029. Projections indicate that the online gross win for regulated operators could surge from an estimated $59.8 million at the end of 2025 to approximately $160.9 million by the close of 2026, contingent on the timely introduction of new regulations.

Recent Prosecutor’s Decision: Clarifying Misinterpretations

As discussions around online regulation continue, the Chilean Public Prosecutor’s Office recently opted not to pursue a case aimed at declaring offshore betting platforms illegal. Valdés underscores that this decision should not be misconstrued as an “acquittal or legal endorsement” of these platforms; rather, it highlights the limitations within the current legal framework regarding the prosecution of offshore operators.

Valdés concludes with a note of urgency: “At ACCJ, we regard the misinterpretation of such decisions as a form of ‘de facto legalization’ as profoundly concerning. We continue to advocate for prompt and clear regulations that eliminate illegal operations and uphold the rule of law.”