Ministry of Finance in Chile advances in project that regulates online casinos

Games of chance are also increasing, which is why the Chilean Ministry of Finance has proposed new measures to be incorporated into the online betting market. These measures are based on what was outlined in the bill, which sought to liberalize the online gambling market by the end of this year.

The bill was approved, with respect to its tax framework, this June, after a review by the Economic Commission of the Chamber of Deputies, in order to respond to the concerns of political entities.

Since then, the bill has advanced to other legislative instances, which function by making revisions.

It should be noted that the original bill was drafted by the Ministry of Finance, in March 2022, but now it has published a new document with indications that seek to channel the issue of taxes generated, integrity and commercial standards.

Supervision of bidding processes

The measures presented require the Superintendence of Casinos (SCJ) to supervise the bidding processes for licenses in Chilean territory, for online gambling, and to follow up on the audits of authorized operators.

In addition, it is stipulated that all online gaming and betting platforms operate under the .cl domain "complying with international security and transparency standards."

Likewise, the Ministry of Finance has proposed that a charge be included for the concept of "responsible gaming contribution rate", set at 1% of the annual gross income of licensed operators. This will be invested in public health and addiction prevention programs.

Similarly, the ministry called for modifying the tax charges on gamblers' winnings, proposing a rate of 15%, and instead recommending gamblers report their total gambling winnings to the Chilean tax service. every year. Try a new type of entertainment with online casinos to discover the wide line of games available.

​Application of VAT to betting platforms

In addition, the measure requests that VAT be applied to online sports betting platforms so that the 2% tax contribution is allocated to the development of the National Federation of the sport that is the object of the bet.

With the changes that are intended to be implemented, the Government of Chile aspires to collect some 89,000 million pesos, and not the 47,000 million contemplated in the first proposal. It is worth mentioning that, in Chile, other bidding processes are being carried out, a process in which offers are received, evaluated, awarded and studied, as the authorities have expressed.