Chile Revisits Online Gaming Debate
Author:
Muhammad Gregory
The South American country of Chile is looking at the online gaming debate once more, after initial talks were delayed. The former pause on discussion of new legislation was instigated by Chile’s Executive powers, which wanted talks to resume once additional issues regarding tax had been incorporated to the legislation’s language. However, the deadline for these changes has now come to pass, which means the debate is active again as of January 3, 2023.
Chile has reactivated its ongoing discussion about regulating online gaming. Markus Spiske/Unsplash
Online gaming for public works
To start the new analysis of the online gaming bill, Chile’s Economy Commission of the Chamber of Deputies gave the go ahead. The commission began by inviting specialists from the gambling industry to speak on the topic in person. Part of the reason for the commission’s relative haste in the matter comes down to its president, Miguel Mellado.
The deputy of District 23 described the matter as urgently in need of discussion and resolution. Mellado’s purpose was clear as he explained online gaming will bring in tax revenue which is needed for various social projects. It constitutes a valuable resource for the government and the Chilean people.
Furthermore, Mellado insinuated that the federal government has been too slow to act on the matter but that it cannot afford to delay. Mellado also believes that the gaming proposition is already quite clear and specific enough to act on quickly.
One of the experts that the commission brought in was the corporate prosecutor for Dreams casino chain, Carlos Silva. Silva confirmed what is already obvious to those working closely on the issue: Chile currently does not earn anything from online gaming because all active operators there are platformed overseas.
This of course poses a problem when it comes to taxation as well as regulation of online gaming, an increasingly popular pastime across LATAM. Silva lambasted the Chilean government for not acting on this issue sooner, saying that not only do they not regulate the industry, but that they have not worked to solve the problem together.
Silva also said they should have the power to take on online gaming platforms in the court of law, but that they fail to act on this front, too. Silva asked the commission to create a law for the management of sports betting and online gaming in Chile. He believes management could be provided by the Chilean Charity Fund — which would in turn benefit from taxation — as well as casinos approved by Law 19,995.
If the initiative goes through, as proposed, possible gaming operators — like Dreams — could apply for a five-year license from the Chilean government. This would allow them to exploit online gaming but within a framework set out by the Executive power. A temporary license could be another option for the duration of six months.
While the license would cover a number of betting verticals, it would be managed separately from Chilean lotteries. The license would also carry with it strict regulations about not advertising to minors or promoting violence. Chile has already discussed a potential ban on betting advertising, which would affect sports areas.
Anyone above the legal betting age would be allowed to create an account and use these online services once they are up and running. Contenders for licenses must have a Chilean base, and they also will need to show records of where their funding comes from. As is usual in the licensing bid process, these companies will also disclose information about backers and their experience within the industry.
The Superintendence of Gaming Casinos — potentially renamed as the Superintendency of Casinos, Betting and Games of Chance — would be the ultimate governing body for online gaming operations in Chile. They would also help to monitor tax collection, which will be a set percentage of companies’ gross incomes. License fees would be another source of revenue for government projects.
