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Reports & Data

Chile’s online gambling bill faces key restrictions amid industry growth

Thursday 05 de September 2024 / 12:00

2 minutos de lectura

(Santiago de Chile).- As Chile processes the 'Bill that Regulates the Development of Online Gambling Platforms,' the industry faces significant challenges, including bans on advertising at sporting events and restricted access to certain betting sites. Despite these restrictions, user interest in sports betting continues to grow. Explore the report and analysis of these developments and their potential impact on the market.

Chile’s online gambling bill faces key restrictions amid industry growth

The ‘Bill that Regulates the Development of Online Gambling Platforms’ is being processed in Chile.
And as it moves forward, the industry faces key restrictions:

  • A ban on bookmakers' advertising at clubs and sporting events.
  • Blocking access to some betting sites from Mundo Pacifico and other companies.

Under this scenario, we would expect a loss of user interest in online gambling and a weak brand presence.
However, users show a high acceptance of new brands and a growing interest in sports betting in the country.
Let's take a look at some of the most revealing facts below, but not without first understanding why these restrictions have been put in place and who has been behind each event.

The End of Bookmakers' Advertising and Sports Sponsorships

In September 2023, the Ministry of Justice gave the National Professional Football Association (ANFP) an ultimatum:
Within a maximum of 30 days they had to terminate their contracts with bookmakers.
This, after the undersecretary of the Ministry of Justice indicated that ‘the commercial relationship between the ANFP and the betting brands is considered illegal under Chilean law...’.
In October of the same year, while Chile was playing a game against Peru, Chilevisión broadcast advertising for sports betting companies.
As it was considered inappropriate for minors, the National Television Council (CNTV) imposed a fine of 20 UTM (around $1.3 million).
The CNTV argued that ‘the broadcasting of advertising spots about this activity is detrimental to the spiritual and intellectual formation of children and young people’.

Blockades Requested by Polla Chilena and Lotería De Concepción

In 2022, Polla Chilena de Beneficencia filed a writ of protection requesting that access to 23 online bookmakers be blocked.
This, after the president of Polla Chilena's board of directors, Macarena Carvallo, said that the state-owned company had lost 56% of its revenue since 2019 due to the operation of these platforms.

The request was based on the alleged illegality of the foreign houses as their operation is not regulated in the country, and led to the blocking of the sites by Mundo Pacifico in 2023.

More recently, in August 2024, the Loteria de Concepción requested the blocking by Claro Chile, Entel, GTD, Telefónica Chile, WOM and VTR.
However, it is worth remembering that Chile currently has a Bill 14838-03, known as the Proyecto de Ley que busca ‘Regular el Desarrollo de Plataformas de Apuestas en Línea’ (Bill that seeks to ‘Regulate the Development of Online Gambling Platforms’).
Carlos Baeza, lawyer of Betano, Betsson, Coolbet and Latamwin, has highlighted on previous occasions that it is not possible to speak of illegality because Chile is in a regulation process where: ‘Neither the Constitution, nor civil nor criminal regulations establish a ban on online gambling.’
He also said that ‘international experience shows that any absolute prohibition generates the opposite effect, with an incentive to the black market and a lack of protection for users’.

Interest in Gambling in Chile Over Time

Google Trends uses a scale of 1 to 100 to indicate how popular a term (word or phrase) is over the course of a week.
By adding up the popularity for each week, it is possible to understand how much interest there was during the whole month (this gives a maximum value of 400).

To begin with, we decided to check the popularity of the term ‘sports betting’ from 01 July 2023 to 31 August 2024.
Based on the data provided by Google Trends, we found the following:

- In the absence of impactful sporting events, interest in betting remained constant, between the values 200 and 300.
- The highest popularity values were reached at decisive national, continental or global sporting events.
- The lowest values were obtained in the months of January, February and August, coinciding with the sporting ‘quietness’ of the moment.

The bookmaker lockout started in September 2023

However, as shown below, betting interest grew in September and October, months marked by the 2026 World Cup Qualifiers:



In October and November, popularity also increased due to the Pan American Games in Santiago.
In 2024, the highest betting interest was recorded in June, the month that saw the start of the Copa America and the European Championship.

Betting Interest by Region

In the region of Arica y Parinacota, interest in betting was minimal in this time period, with a value of 0.
In the Atacama region and in Tarapacá, interest was around 50. However, Aysén reached a value of 100.
This reflects the region's high interest in gambling even in the midst of the industry's restrictions.

Interest In Chile Compared To Other Countries

The above data shows the popularity of gambling in Chile and in each of its regions.
But it is also necessary to know where the country stands in a broader context.
To broaden the context of this data, the Latin American countries with the highest GDP are taken: Brazil, Mexico, Argentina, Colombia and Chile.
As in the previous cases, we cover the period from 1 July 2023 to 31 August 2024.
Based on this data, it can be seen that the overall popularity of betting grew in September and October 2023, and between March and June 2024.
(September and October for the World Cup Qualifiers, March for the coming into form of various tournaments and June for the Copa America).
But in detail, we can see that in June the interest was higher in Chile compared to all other countries.

This higher value in Chile is important considering that the final of the Copa América was played between Argentina and Colombia.

On the other hand, we consider that this behaviour may have had an impact on the growth of some of the brands operating in the country.

Conclusion

In conclusion, this may be a reflection of the customised proposals with which new operators are entering the national scene.
But it is also a situation that demonstrates that, beyond the restrictions, interest in gambling continues to grow in Chile.

Por Carolina Serna

Categoría:Reports & Data

Tags: Sin tags

País: Chile

Región: South America

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