Evolution and Challenges of Online Casinos in Chile: An Analysis of its Legal Framework

The boom of the iGaming industry in Chile
The rise of online casinos in Chile poses great challenges for authorities. The gaming industry is not far behind and now there are not only 26 physical establishments regulated by the Superintendency of Games and Casino, now there are almost 900 websites that offer Internet betting. The Government was not prepared for such a demand.

Online casinos are certainly not illegal, but they are also not regulated by national law. What does this mean for players? This means that the choice of site must be based on international regulations. For example, Blaze Casino appeared in the Chilean iGaming market in 2020 and already in 2022 it was proclaimed as one of the best gambling platforms in the country.

Its popularity is easy to explain. This is a gambling platform belonging to the company Prolific Trade N.V., whose operating permit was granted by the Government of Curaçao, an international regulator, with the license of Gaming Services Providers N.V. #365/JAZ. In addition to that, in its portfolio it has everything from slots to sports and an excellent welcome package up to 160,000 CLP.

This casino is just one example of many fantastic operators currently offering their services legally in Chile. Although the position of the authorities is totally opposite.

The government and online casinos: Where is the discrepancy?
The Superintendency and Sernac warn about the possible risks of placing bets on the Internet, since these are not regulated by Chilean laws. Therefore, they do not protect the participants in any way. Next, La Polla Chilena de Beneficencia filed a lawsuit that led to the order to block a dozen gambling sites from Internet providers for not paying taxes.

The legal representatives of sites such as Betano, Betsson, among others, were debating two years for the Public Ministry to file complaints against said online betting houses and, they achieved it!

Regarding the position of the prosecution, it was explained as follows:

“There is insufficient evidence to file charges for the possible commission of criminal offenses.”

As long as there is no legislation in force that regulates online betting or considers it illegal, it will be allowed as an individual right. It should be noted that the Government has already launched the development of a law to obtain all the benefits and rights, including the payment of taxes to the State.

How to play safely while regulations are implemented in Chile?
To be sure that your personal data, payment information, telephone number, address, passport, among others, are well protected, review the casino's Privacy Policy. It sets out the rules and regulations of the site that are used to protect you. In addition, it must be explained clearly and concisely how this data is collected and processed.

The first rule and rule to comply with is verification. If you don't understand why you should verify your identity, we will say that it is mandatory for several reasons:

Fraud prevention: By confirming identity, the casino ensures that transactions (deposits and withdrawals) are being made by the right person.

Responsible Gaming Policy: Access is restricted to players under 18 years of age, players who are prohibited from entering gambling sites on the Internet, etc.

Prevention of Money Laundering: Identity verification is a key measure in the prevention of money laundering. Therefore, as a general rule you should make deposits and withdraw profits with the same payment method originally selected.
By understanding why and how your personal and identity data is collected and used, you should review whether security requirements are met. We would like to highlight the license, which is the first sign of a decent casino. If the permit is valid, then you can register at the casino and place bets. Otherwise, it is better to give preference to another operator.

Apart from a license and verification, the site must protect the personal data of its users using advanced digital methods, such as:

SSL Encryption: Protects all information that passes from the player to the casino by encrypting it along the way.
Firewalls and Malware Protection: Prevents unauthorized access.

Software Updates: It is essential for the correct functioning of the site. In addition, the software must be updated not only on the casino website, but also in the games.

Double Authentication (2FA): Improves security by making unauthorized access difficult, even if an attacker obtains the main password. Although it does not provide complete security, it makes it much more difficult for cybercriminals to compromise user accounts.

In short, choose casinos that operate legally to ensure security and avoid problems such as hacking. Comply with the casino's requirements to ensure payment of winnings. With the implementation of national laws, the game will be even safer and more comfortable for everyone.