TLDR Chile’s government sent the Senate a plan on October 26 to license and tax online gambling operators. The plan includes five-year licences, 19% VAT on the gap between stakes and winnings, and a separate 3% tax. Senators Diego Ibáñez and Gastón Saavedra want a full ban with prison terms of six months to three years. Senator Daniel Núñez wants the market given only to Chile’s two existing lottery operators. Brazil banned online gambling on October 6, and its Supreme Court will hear the case on November 3.
Chile’s government has asked the Senate to create a licensed and taxed online gambling market. Some senators want to go the other way and ban online gambling outright.
President José Antonio Kast’s government sent a package of amendments to the Senate on Monday, October 26. The plan would set up a licensing system for private operators, with new taxes, advertising limits and player protections.
Two rival proposals from senators would change the bill in a major way. One would ban online gambling completely, while the other would give the market only to Chile’s existing lottery operators.
What the Government’s Plan Includes
Under the government’s proposal, operators could apply for licences that last five years. They would pay 19% VAT on the difference between stakes and winnings, plus a separate 3% tax.
Advertising would not be allowed under the plan. Operators would also be barred from offering promotional bonuses.
The proposals include default limits on deposits and playing time. These limits are meant to protect players.
Senators Push for a Ban or a Lottery-Only Market
Senators Diego Ibáñez and Gastón Saavedra have proposed replacing the legislation with a full ban. Their amendment would prohibit anyone from developing, operating, managing, offering, brokering or advertising online gambling platforms in Chile.
Their plan