Chile, officially known as the Republic of Chile, is a country located in the western part of South America. The country occupies more than half of the west coast of the continent and borders countries such as Peru, Bolivia, and Argentina. When it comes to gambling, Chile boasts one of the most well-regulated land-based gambling industries in the world. That said, the country has yet to legalize online gambling and properly regulate that form of entertainment.
Gambling has been a part of Chile’s history for many years, with some forms of gambling being legalized as far back as 1852. Today, gambling is properly regulated in the country, with operators able to apply for a license if they wish to conduct gaming or betting activities at land-based gambling facilities in Chile. As mentioned, the country has not yet fully legalized online gambling, but the Chilean government is considering doing so in the near future.
While the law governing gambling has not yet shifted toward a fully regulated online market, Chile took steps toward online gambling in 2008. Thanks to the amendments introduced then, Chileans can now enjoy online lottery games and even some forms of online sports betting. If new regulations are introduced, the gambling industry in Chile is expected to grow further and allow Chileans to freely enjoy all forms of gambling.
History of Gambling in Chile
Legal gambling in Chile can be traced back to the mid-19th century, with the first land-based casino opening in 1852. Despite this, the years when the country was ruled by General Pinochet were not the most fruitful period for gambling in Chile. During that time, Law No. 1,528 from 1902 was enacted, legalizing horse race betting. Under that law, however, Chileans were not allowed to participate in any gambling other than betting on horse races.
Fortunately, over the years, the country has amended its gambling laws several times. This is why the land-based gambling industry in Chile is well regulated, giving Chileans the opportunity to enjoy a variety of gambling options. In 2005, Law No. 19,995 was implemented, regulating land-based casino operations in Chile.
In 2008, a limited number of gambling activities were allowed to operate online through Decree No. 1,411. Thanks to this legislation, Chileans can currently play online lotteries and even place bets on certain sporting events. Both forms of gambling, however, are state-owned monopolies.
In 2021, the Chilean government announced its plans to change the country’s online gambling landscape. Lawmakers assured the public they would devote their efforts to proposing a bill that would legalize and regulate online gambling in Chile. At the time of writing, the bill still has not been proposed, and iGaming has yet to be legally allowed in the Latin American country.
Gambling Regulations in Chile
As already mentioned, the history of legal gambling in Chile began in 1852, when the first land-based casino launched operations in the country. Over the following years, Chile’s gambling industry continued to evolve as additional laws were enacted, some of which still regulate the sector today.
Although the first brick-and-mortar casino opened in 1852, it was not until 1902 that Law No. 1,528 was passed, permitting only bets on horse races. Horse racing betting was the first form of gambling to be properly regulated and legalized in Chile. Under that law, horse racing became a state monopoly, and for several years it was the only legal gambling activity available to Chileans.
In 1986, the country also passed a law regulating the lottery, which became a state monopoly. Later, sports betting was monopolized as well, and both lotteries and sports betting are still organized by the state-owned companies La Lotería de Concepción and Polla Chilena. In 2008, through Decree No. 1,411, the two companies were allowed to offer lottery tickets, instant games, and sports betting online.
Regulation of land-based casinos in Chile began in 2005 with the enactment of Law No. 19,995. Under this law, operators that wish to run a brick-and-mortar casino are required to obtain a license from the Superintendencia de Casinos de Juego (Superintendency of Gaming Casinos). Under Chilean gambling laws, the minimum legal gambling age is 18.
Land-Based Casinos in Chile
Other Forms of Legal Gambling in ChileOnline Gambling in Chile
While Chile boasts a well-regulated land-based gambling scene, when it comes to online gambling, the country is still far behind many others. The current legislative framework of the Latin American nation lacks definitions of online gambling and how it should be conducted. Although the law specifies that land-based casino operators must obtain a license from the Superintendency of Gaming Casinos in Chile, online casinos are currently unregulated.
The few forms of online gambling that have been legalized, albeit in a highly restrictive manner, include lottery games and sports betting. Thanks to the enactment of Decree No. 1,411, lottery games and sports betting offered by state-owned La Lotería de Concepción and Polla Chilena were made available online. Despite this, online casinos remain unregulated, with no licensing process introduced for them.
While the state-owned sportsbook offers some betting options on sports popular in Chile, there are still numerous Chileans who prefer wagering on foreign, unlicensed websites. In fact, offshore gaming and betting are widespread among punters and casino fans in the country.
While online gambling has not been legalized in the Latin American country, many people take advantage of the fact that the sector is unregulated in Chile. Because the government takes no measures to restrict access to foreign online sportsbooks and casinos, many Chileans resort to offshore websites for their virtual betting and gaming experiences. Because there are no legal consequences for those who participate in online gambling on foreign sites, this form of gambling is becoming increasingly popular in the country.
With online gambling activity among Chileans constantly growing, the local government has recognized the need for a new law legalizing the iGaming sector. At the beginning of 2021, the Chilean Ministry of Finance promised to work intensively on proposing a new bill that would legalize online gambling in Chile. The bill is expected to regulate online casino games, online sports betting, as well as other forms of interactive wagering.
If a new bill is passed, a regulated online gambling market would enable Chile to generate greater tax revenue. In addition, the new law would provide better oversight of licensed operators.
While a new bill regulating online gambling in Chile sounds promising, at the time of writing, the bill has still not been submitted for approval.
Gambling Regulator and Licensing Process in Chile
The authority responsible for regulating the gambling industry in Chile is the Superintendency of Gaming Casinos. It was established with the implementation of Law No. 19,995, under which operators who wish to run casino establishments or other land-based gambling facilities in Chile must obtain a license from that authority.
Those who wish to learn more about the licensing process in Chile can also consult Law No. 20,856, which amended Law No. 19,995. One could also visit the official website of the regulatory body and look up the details of acquiring an operating license from the Superintendency of Gaming Casinos. It should be noted, however, that the website of the licensing authority is available only in Spanish, so those who are not fluent in the language might need help understanding the licensing process.
The Superintendency of Gaming Casinos handles the licensing process for land-based casinos in Chile. Meanwhile, lottery licenses can also be issued to private companies. This type of license, however, can be obtained only from La Lotería de Concepción. Unfortunately, the website of this licensing body is also available only in Spanish.
Gambling Taxes in Chile
Players who generate winnings from gambling in Chile are not required to pay any taxes, but there is a casino entry tax of 0.07 Monthly Tax Units (UTMs). However, casinos and other land-based gambling facilities that operate in the country must pay gambling taxes.
Brick-and-mortar casinos are required to pay a tax of 20% on their gross income. They must also pay net of VAT and make Provisional Monthly Payments (PPMs).
Closing Thoughts
Chile is known for having one of the best gambling regulation systems in the world. Because the country’s legislative framework has been amended several times over the years, land-based casino operations are now legal, provided operators obtain a license from the local regulatory body. Lotteries, sports betting, and horse race betting have also been legalized in Chile.
Unfortunately, Chile has legalized only land-based gambling, while online gambling remains unregulated in the Latin American country. Nevertheless, the lack of legal restrictions and penalties for those who participate in online gambling encourages many Chileans to play at offshore online casinos.
As the Chilean government realizes the potential benefits of legalizing online gambling, lawmakers are working toward implementing a new bill that would introduce legal online casinos and sportsbooks in Chile. Even so, as of now, online gambling remains an unregulated industry in the Latin American country.