The proposals are focused on continuing to refine this regulatory framework, which until now has only been seen by the Economy Commission, but which in the coming days will be sent to the Sports Commission for the only time so that it can also be studied.

Among the indications entered by the Executive, there are those that are related to the supervision of these platforms, especially those that are domiciled outside the country.

For example, it defines what it means to exploit, advertise or offer its services in Chile 12 months before applying for a future license to operate. To do this, it establishes eight criteria:

They have allowed the crediting of users' accounts or the payment of bets in legal tender.

Use the media to advertise or promote their services in national territory, as well as operate under a name that uses references to the country, historical public figures.

Sponsor, their territory, knowledge or sponsor or have similar contracts with people, entities and/or events that take place in the national territory.

They operate through a company incorporated in the country.

Offer your services through a web domain that ends in dot cl (.cl).

Use the national emblem or symbols that contain elements closely linked to the country.

They mention that they are duly regulated by the Superintendency or authorized by some other Chilean entity.

Use any of the payment methods authorized by the Financial Market Commission or facilitate transfers and/or national bank deposits as a means of payment.

Guarantees and taxes

Within transitional provisions, it contemplates that exceptionally from the entry into force of the new law, platforms that constitute a closed corporation in Chile may operate under the terms of article 11 of the project; that certify through a certificate issued by a laboratory accredited by the Superintendency of Gaming Casinos that the systems used on the platform comply with technical standards of jurisdictions, whose legislation, according to the aforementioned Superintendency, is similar to that established in this law, at least as regards public faith and the amounts deposited and bet; identity verification mechanisms; exclusion of children and adolescents, and registration of transactions carried out by users.

It also establishes a guarantee of 5,000 UTM in favor of the Superintendency. Said amount must be returned once the general operating license is obtained in accordance with the law. Furthermore, it maintains that companies should not be part of a business group that has provided betting or similar services used by natural persons with domicile or residence in Chile, prior to the entry into force of the law. However, this requirement may exceptionally be excluded as long as it has been demonstrated that it has submitted to the voluntary tax declaration procedure indicated in the third transitional article.

On the other hand, a tax rate of 31% obtained in the last 36 tax periods is established, less payments for VAT concepts. In addition, a user acquisition component will be set, equivalent to 0.07 UTM for each of the betting accounts that had movements in said declaration period. The amount may not be less than 1,000 UTM per year or fraction of a year of the aforementioned tax periods. Operators will also have a period of 30 days once the law is published to make this declaration.

Along with the declaration, the platforms that adhere to this regulatory framework must provide information to the Internal Revenue Service on the income obtained by users from prizes on the betting platforms.

The Dipres report

The government's indications were accompanied by a Substitute Financial Report signed by the Budget Director, Javiera Martínez, who explains the benefits of the bill in which she details the taxes that operators must pay when obtaining the license granted by the Casino Superintendence.

In short, a special gaming tax of 20% of annual gross income (income minus prizes), after deduction of the amount of VAT; a higher specific tax for responsible gaming, which corresponds to the difference between 1% of gross income and the disbursements made by the operating company that qualify as actions aimed at promoting responsible gaming; an annual levy for each calendar year or fraction of 1,000 UTM for each general operating license of online betting platforms that are in operation.

It is also seeking to create online betting exploitation licenses for unique events; defines crimes and payment control regulations and establishes systems for persecuting illegal operators, giving the Superintendency the tools to block their activity. Likewise, Law 19,995, which regulates casinos, is modified and establishes a 1% tax surcharge as a contribution to responsible gaming.

Finally, the project contemplates a modification to the Polla Chilena de Beneficencia Sports Forecasting System, making adjustments in the sense of transferring 22% of the gross income from online and in-person betting to the National Sports Institute so that they can be allocated to the sports federations.

High income

The modification eliminates the fiscal benefit tax of 15% of the gross income of Xperto and Polla Gol, as well as the transfers of this company to the IND, which correspond to 12% of the entries from these two games of chance.

Among the estimates of the effects on tax revenues, the report projects an annual growth of 10% of the Chilean online betting market, it also maintains that “it is assumed that the legalization of platforms will attract new platforms and new users to the market, which which would increase its size (gross income). Because these platforms are already overcrowded, a conservative legalization increase of 10% is assumed in year 2, which gradually decreases until reaching 2.5% in year 5.

Regarding the gradual legalization of existing platforms, “it is estimated that 25% of the market's gross income will come from legal platforms in the first instance, which will increase until reaching 85% in year 5. The latter "The rate corresponds to the estimated rate in the regime."

Within the projections made by the government, it is estimated that seven companies will benefit from this system paying the minimum tax established by law of 1,000 UTM per year, so each of them must pay 3,000 UTM.

Finally, the report includes a table of tax revenues from private platforms. It establishes that $1,329 million will be raised in the first year; $19.15 billion in the second; $42,829 million in the third; $67,105 million in the fourth; and $88,163 million in the fifth year.

It also projects a table in a less optimistic scenario with lower income, which results in a third estimate, where losses of $2,749 million are projected in the first year to profits of $84,085 million in the fifth. In addition, an investment is seen in strengthening the Superintendency of Gaming Casinos, the entity that must supervise these platforms.