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In a transformative move for Chile’s gambling industry, the Economic Commission of the Chilean Chamber of Deputies has approved Bill 035/2022. Introduced in March 2022 to regulate online betting, the bill has finally been passed with a 9-1 vote after enduring various legislative debates and considerations. This decision holds substantial significance considering the current state of the country’s online wagering services, which comprise only three operators.
The endorsement of Bill 035/2022 followed a suite of legislative measures initiated in March 2022. The Internal Revenue Service of the government classified betting as an activity lacking a regulatory framework. In the following month, the Chamber of Deputies deemed agreements between sports clubs and betting operators illegal. However, this verdict has been recently pushed for further deliberation by the Senate.
The Senate’s Economic Commission has recently scrutinized the bill that proposes to regulate sports betting. This included input from governmental authorities for customer service and financial markets, Andres Herrera and Solange Berstein respectively. The bill now awaits a consultation period that is slated to conclude on June 12. Following this period, the Senate will determine whether the bill will be sanctioned into law.
According to Carlos Baeza, the legal representative of Betano, Betsson, Coolbet, and Latamwin, the advancement of the bill is a promising indication. He declared, “Chile will be among 73% of the OECF countries that have regulated online betting platforms in a comprehensive way, addressing the institutional, tax and advertising requirements of the industry.”
Baeza views the regulation as a beneficial legal approach to distinguish legal platforms from illegal sports books. He also appreciated the Chilean Ministry of Finance’s role in the regulatory process. The Superintendency of Gambling Casinos (SCJ), the gaming regulatory body, anticipates that the yearly value of gambling operations could reach between $130 million and $170 million, supported by licensed operations and a legal framework. SCJ also expects to generate approximately $50 million a year from licenses, taxes, and other regulatory fees.
The government foresees the regulated sports betting attracting international companies to the Chilean market. However, it also anticipates the need for methods to counter problem gambling, which should be implemented once online sports betting launches in the country.
In an effort to counter problem gambling and restrict minors from gambling operations, authorities require bettors to have a Unique National Role, or ID. This measure is aimed at preventing unauthorized access to wagering accounts.
Bill 035/2022 stipulates that only those betting companies that secure a five-year renewable license can provide their services. The Bill further mentions, “These licenses will be granted through a non-competitive and administrative process, as it’s difficult to evaluate one proposal over another, nor is it possible to establish mechanisms of exclusion or territorial monopoly.”
The Bill also obligates operators to submit a Platform Operation Plan and a deposit, and permits only licensed companies to publicize their content in the media. Non-compliance with the measure could result in fines by the regulator.