Chilean Senate committee votes to ban online gambling platforms
The amendments would block a regulated private market, setting out prison sentences and fines for operators.
A Chilean Senate committee has voted to amend a bill to ban online gambling platforms, rejecting the government's plan to license and tax private operators. On Monday, the Senate Economy Committee approved two separate amendments by a vote of three to one, with one abstention. Both proposals would block the creation of a regulated private online betting market, though they set out different penalties. The committee chair said the two texts would be merged at the panel's next session. The vote represents a sharp turn for the legislation. In late October, President José Antonio Kast's government sent amendments to the Senate designed to legalise private operators. Those proposals included five-year licences and a 19 percent value-added tax on the difference between bets and prizes paid, plus an extra 3 percent levy.
The amendment from committee chair Gastón Saavedra of the Socialist Party and Broad Front Senator Diego Ibáñez would replace the entire bill. It prohibits operating, running, offering or advertising online betting platforms in Chile. Any platform accepting bets from Chile would be considered operating in the country, regardless of server or domain location. State lottery operator Polla Chilena de Beneficencia, lottery operator Lotería de Concepción, authorised racetracks and land-based casinos would be exempt from this ban.
Under this proposal, offenders who break the ban for profit could face prison sentences between 541 days and five years. They could also be fined between 200 and 1,000 UTM, Chile's inflation-linked monthly tax unit. Internet providers, app stores and payment companies would be required to block access, downloads and transactions for illegal platforms. The second amendment, tabled by Senate President Paulina Núñez and fellow National Renewal Senator María José Gatica, also rules out a private licensing market. It would allow courts to block illegal sites permanently and restrict their payments and advertising. In serious cases, such as deliberately targeting minors or operating in defiance of a final court order, offenders could face up to 15 years in prison and fines of up to 10,000 UTM, according to a report by CNN Chile.
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Ibáñez defended reopening the debate, pointing to a Supreme Court ruling. "Why do I think we need to open the political debate?" he asked, according to ADN Radio. The court, he added, "declares this business illegal and orders all online betting houses to be closed". Independent Senator Matías Walker opposed the ban, arguing that regulation would compel operators to obtain licences and pay tax. "I think prohibition is the worst path," he said. "It's the best scenario for the companies that have never wanted to regularise, that have never wanted a state licence, that have never wanted to pay taxes."
Deputy Finance Minister Sebastián Vallebona suggested that rejecting the government's plan would leave children less protected from gambling addiction. National Renewal Senator Manuel José Ossandón responded forcefully. "I don't accept that," he said. "I worked for 20 years in poor neighbourhoods you don't even know, so don't come and tell me that." The Chamber of Deputies has already passed the bill, and the Senate approved it in principle. The Economy Committee is now reviewing it line by line, with the Senate Finance Committee set to examine it next.