In general, these restrictions and regulations focus on protecting players, ensuring the integrity of operators and contributing to the collection of domestic taxes. In the following, we will explore the functioning of some international regulatory bodies and how they address the prevention of gambling addiction in the online casino industry.

The situation of online casinos in Chile and domestic regulations for player protection

In Chile, there are still no defined regulations governing the operation of internet casinos and gambling portals. The most recent estimates indicate that Chileans can gamble on more than 200 foreign websites that operate irregularly in the country, without a regulatory framework or an international licence to protect them in case of fraud or inappropriate use of their personal information.

Currently, the Superintendencia de Casinos de Juego (SCJ) is the public body in charge of regulating gambling, but its scope of action is limited to face-to-face establishments in the national territory.

UK Gambling Commission (UKGC) and GamStop: Protecting Players in the UK

The UK Gambling Commission (UKGC) is one of the most experienced bodies in Europe, established in 2007. Its primary function is to assess, license, advise and guide individuals and businesses offering gambling services to the British public, both in land-based and online establishments, including the national lottery.

The UKGC is a government body that oversees the ongoing compliance of licensed operators. Only those with UKGC approval can operate legally in the UK and offer direct access to the GamStop voluntary self-exclusion system.

GamStop offers a way out for players who are losing resources and/or control over their gambling by restricting access to online casinos for a period of time of their own choosing. If a player activates this protective measure, there is no possibility to cancel that activation until the minimum restriction period is met.

Swedish Gambling Authority (SGA): Security Standards in Sweden

The Swedish Gambling Authority (SGA) sets, like the UKGC, safety and security standards for players when regulating the online casino market. Sweden's new gambling law, effective from 2019, is considered one of the strictest and, for most critics, restrictive in Europe.

Among the restrictions imposed on online casinos is the limitation to a single bonus, offered only on the first game. This means that users are prohibited from receiving further bonuses for subsequent games.

While it has been argued that these strict measures could incentivise player migration to unregulated casinos - exposing gamblers to fraud and serious complications - having SGA approval is a strong indicator of reliability. In addition, the SGA offers its own system of self-exclusion from gambling, known as Spelpaus.

Spelpaus is globally recognised and provides rapid attention to at-risk gamblers. The self-exclusion periods can vary between casinos, allowing the measure to be tailored to the individual needs of players.

Glücksspielstaatsvertrag (GlüStV): How Germany succeeded in standardising gambling laws

In 2020, Germany's 16 Länder unanimously decided to adopt the Fourth Interstate Treaty on Gambling (Glücksspielstaatsvertrag - GlüStV 21), legalising gambling across the board throughout Germany.

The organisation declared as objectives to prevent addiction and problem gambling, to provide a safe and healthy gambling market for domestic players, to encourage preference for licensed operators, to protect children and adolescents and to safeguard the integrity of the games in the catalogues.

Among the limitations put in place are a monthly deposit cap of €1,000, a limit of €1 per spin on slots, the removal of the live dealer from table games and a ban on the automation of spins.

Further protection of player health is provided by the Oasis system, a blocking file that disables access to gambling portals not only through self-exclusion, but also through the entry of third parties on suspicion of gambling behaviour.

How to create a safe online gambling environment in Chile

According to a study on gambling behaviour conducted by the Faculty of Administration and Economics of the University of Santiago and the Responsible Gambling Corporation (2015), more than 11% of gamblers present some problematic or addictive behaviour related to gambling. If we compare the results with data from the National Drug Study of the same year, we identify that the number of problem gamblers exceeds the number of cocaine users.

How can this problem be addressed? The authority must address the problem by looking at and adopting initiatives from the international examples reviewed in this article. A supervisory and licensing body in Chile could create a safe market for Chilean users and increase tax revenues by collecting taxes per operation.

Establishing rules for the online gambling market is a discussion that has been tabled more than once in Congress, without a new legal framework emerging as a result. While establishing rules increases the risk of migration to unauthorised casinos to avoid restrictions, providing avenues of help for addiction quickly and effectively is a great incentive for gamblers, as well as contributing to the creation of a safe and healthy gambling environment.

Until Chile generates its own regulations, it prefers casinos licensed by a reputable gaming regulatory body with clear, strict and fair standards.