Chile Makes Progress With Online Gambling and Betting Legislation
Posted on: December 14, 2023, 06:53h.
Last updated on: December 15, 2023, 10:46h.
On Tuesday, Chile’s Chamber of Deputies overwhelmingly approved and forwarded a bill regulating online gambling and betting platforms to the Senate.
The primary goals include fostering a competitive market in light of existing legal gambling options in the country and ensuring player safety and health. It’s also an attempt to bring greater transparency to the market and capture the tax revenue currently heading offshore.
The initiative aims to administer licenses to online gaming operators, emphasizing adherence to requirements to prevent crimes and money laundering and protect users, particularly minors. It’s good news for operators who only recently were forced to stop operating in the country.
The new regulations will mandate disclosure of their final beneficiaries, enhancing transparency in fund origins and destinations and preventing conflicts of interest. The project outlines a regulatory structure that balances incentives for compliance and imposes severe penalties on illegal operators.
Greater Operator Oversight
The Superintendency of Casino Games (SCJ, for its Spanish acronym) will receive additional powers to oversee the emerging sector. In addition, the Commission for the Financial Market, the Internal Revenue Service, and the Financial Analysis Unit will also play more prominent roles.
A National Responsible Online Betting Policy will be established, involving the SCJ and the ministries of Finance and Health. This policy will aim to ensure responsible gambling practices, prevent gambling-related issues, and set operator advertising and promotion guidelines.
Specific regulations will safeguard young children and adolescents, prohibiting them from opening or maintaining accounts without proper identification. Betting operators must not encourage participation and cannot employ advertising or promotions that may target them. Using any payment instruments in their name will be entirely prohibited.
Individuals will have the option to self-exclude and define gaming patterns, triggering alerts for violations. The superintendency can also raise alerts for common risk patterns as part of its regulatory functions.
Furthermore, the legislation prohibits betting on individuals with an impact on outcomes, such as players, athletes, and organizational leaders. It also addresses the manipulation of betting objects to influence uncertainty. This means a ban on betting on yellow or red cards in soccer and similar actions.
New Tax Plan
Chile’s Chamber of Deputies agreed that online gaming falls under the “digital entertainment service” category. As such, online operators will have to pay VAT like their land-based counterparts at a rate of 20%.
There will also be additional tax requirements. The bill introduces a 2% annual tax on gross income from bets for authorized platforms, with proceeds benefiting the National Sports Institute. Distribution of the funds includes sports federations, the Olympic Committee, and the Paralympic Committee.
Source: casino.org
