"Chile needs an online gaming regulation aligned with international standards"

AgruGaming seeks to represent suppliers in online gaming regulation

The discussion of the bill to regulate online gaming in Chile recently added a new protagonist with the creation of AgruGaming, a trade association representing suppliers of technology, games, live casinos, sports betting, payment methods, marketing, and cybersecurity.

The organization is presided over by Patricio Broerse and appointed Francisco Javier Leiva Vega as Director of Institutional Relations. Leiva was the first Superintendent of Casinos of Chile and spent seven years at the helm of the regulatory body.

Officially constituted last month, AgruGaming started its activities with the participation of Haimme, Retina Cybersecurity, and Mixer Gaming & Tech, although it anticipated that it will incorporate new members in the coming weeks.

Among its main objectives are promoting responsible gaming, transparency, user protection, and collaborating with Congress during the discussion of the future online gaming regulation in Chile.

Interview with Francisco Javier Leiva

After having been the first Superintendent of Casinos of Chile for seven years, what motivated you to return to the center of the industry debate, this time from the suppliers' side and through AgruGaming?

"My interest, since I was appointed superintendent, was for the gaming industry to develop correctly. Indeed, my first experience was with land-based casinos, but given the regulatory framework that limits them and technological advances, what comes next is the development of the online gaming industry, where Chile is lagging far behind, even compared to other Latin American countries.

In that sense, since betting platforms already have their own group, we considered that representation for the suppliers of this industry was missing.

I believe that my main contribution lies within this ecosystem, but this is without prejudice to continuing to contribute to the development of the land-based casino industry and helping it recover the dynamism it has lost in recent years."

You mentioned that the Chilean online gaming market is lagging behind other countries in Latin America. From AgruGaming's perspective, what are the fundamental pillars that the future law must have for the country to catch up under international standards?

"Proper regulation must allow for fair play and channel players into licensed platforms. Furthermore, access for minors must be prohibited, player care for pathological gaming must be promoted through Responsible Gaming Programs, and the control and prevention of money laundering must be guaranteed.

This means that regulation must enable the development of a business model that allows online gaming companies to offer a competitive product in terms of variety, quality, and price; with a tax burden aligned with the online gaming business model, which is very different from land-based gaming. In this way, the regulated offer will be competitive enough to avoid the advantages of the 'offshore' offer, allowing the regulated market to absorb most of the online gaming volume.

Additionally, the regulatory authority must exercise control, establishing strict corporate and technological compliance requirements that guarantee the cleanliness and transparency of the activity."

Why do you consider it crucial for technology, cybersecurity, and payment method suppliers to have an active voice in Congress, and what specific regulatory gaps are you seeking to prevent from remaining in the new legislation?

"It is not just about gaps; the main thing is that it is regulated correctly, taking into account international best practices, since one risk is that, out of ignorance, regulations or demands are generated that hinder the proper functioning of the industry. For this, it is important that both members of Congress and Executive authorities are kept informed and directly know how successful operations run in other jurisdictions."

How will AgruGaming interact with the operators already grouped under the Chilean Association of Online Betting Platforms? In what ways do you plan to complement your efforts to drive the sustainable development of the sector?

"I think it is a complementary effort, as we are both in favor of developing the online gaming industry in Chile. To this end, each will contribute from their specific experience, but always providing information and engaging in a constructive dialogue, contributing to achieving the best regulation for Chile."

One of the association's objectives is to promote responsible gaming and user protection. As a former regulator and now Director of Institutional Relations, how do you achieve a balance so that the future regulations are strict on security and transparency without creating unnecessary obstacles to business growth?

"There are countless successful experiences internationally, so we have the advantage of not having to 'reinvent the wheel.' In that sense, we must ensure that the regulation sets clear requirements that prevent minors from accessing gaming platforms. Furthermore, limitations on advertising should be considered.

On the other hand, by being part of the regulation, there will be fair competition among the different operators, since everyone will have to comply with the regulatory requirements."

A new interlocutor for the development of the Chilean market

With the incorporation of Francisco Javier Leiva and the formation of AgruGaming, suppliers within the online gaming ecosystem sought to have an active participation in the Chilean legislative process. The association stated that its objective is to bring the technical experience of companies linked to technology, cybersecurity, payment methods, and game development, promoting a modern regulation that encourages investment, strengthens responsible gaming, and allows the sustainable growth of the online gaming industry in Chile.