Chile Embraces Online Gambling Regulation

The Chilean government has taken a significant step forward in the world of online gambling. They've embraced resolutions presented by the Chamber of Deputies Economic Commission, marking a momentous development in the country's gambling landscape. These resolutions, comprising 15 new articles, outline the specifics of licensed and prohibited online gambling activities.

These groundbreaking measures have been crafted under the guidance of economic undersecretary Heidi Berner, with invaluable assistance from Vivien Villagrán, the superintendent of Gaming Casinos Chile (SCJ). They are part of the legislative framework for Bill 035/2022, which seeks to legalize both online gambling and sports betting in Chile.

Ever since the bill received authorization back in March, various government departments have been diligently working on policy provisions. The newly introduced articles also address the issue of criminal activity associated with online gambling, introducing penalties for those who breach the regulations.

Article 40, for instance, empowers authorities to take action against unlicensed gambling operators, while Article 15 imposes fines and minor imprisonment for those attempting to manipulate betting events to influence market outcomes. Additional articles address corruption, cybercrime, and fraud within the realm of online gambling. According to Berner, these articles are designed to "ensure transparency and safety in virtual betting activities."

To operate online gambling activities in Chile, potential licensees will be required to register their products with the Ministry of Finance. Moreover, they must designate a legal beneficiary to represent their license. This beneficiary can be either Chilean or foreign and will possess voting rights or veto authority concerning an applicant or operating firm.

The Ministry of Finance is expected to release its recommendations regarding licensing fees and tax proposals in the coming weeks, with the government's aim being the launch of regulated online gambling by year-end.

In a related development, the National Congress recently announced the establishment of a commission to review Chile's regulations on sports betting advertising. Headed by sports minister Jaime Pizarro, this commission will scrutinize the relationships between football clubs and gambling companies, both domestic and international. Additionally, it will investigate a dispute between the National Association of Professional Football (ANFP) and the Ministry of Justice regarding betting sponsorships.

The Ministry of Justice has instructed the ANFP to enforce the regulations outlined in Chile's Sports Integrity Bill, which effectively prohibits the promotion of illegal activities. However, the ANFP argues that sports betting is legal and anticipates the government will introduce a clear legal framework for it.