Chile will now require offshore online gambling platforms—targeting Chilean players—to register and pay taxes in the country. The new mandate, put forth by the Chilean Internal Revenue Service (SII), obligates foreign-based online casinos, sports betting sites, and other digital games to pay Value Added Tax (VAT) on transactions involving Chilean users. This development follows Exempt Resolution No. 69, issued on June 2, 2026, bringing these operators under the same simplified tax regime that governs other international digital service providers like streaming platforms and e-commerce portals.
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Regulatory Framework and Tax Implications
The Chilean government’s move aims to ensure tax equity, requiring all income-generating activities in the country to contribute to the national coffers, regardless of where these companies are domiciled. The resolution dictates that VAT must be levied on all payments to these foreign platforms. But additionally, companies with past operations in the Chilean market could face tax liabilities for up to 36 previous tax periods. The SII has emphasized its focus on enforcing tax compliance, clarifying that it does not determine the legality of economic activities—a role designated to other government bodies. The timing is notable—Chile’s legislative process for a formal online gambling regulatory framework is still inching forward in the Senate, adding layers to an already complex regulatory market.
Industry Reactions: A Divided House
The response from industry players has been mixed. The Chilean Association of Online Betting Platforms (aPAL) welcomed the new tax position, describing it as a corrective measure that allows companies to access the systems available to other overseas digital providers. They argue it also provides legal certainty and pushes forward the regulation agenda for the sector, which has been in legislative limbo for years. However, not everyone shares the enthusiasm. The Chilean Association of Casinos and Gaming (ACCJ), representing local land-based operators, opposes the decision. They argue it may inadvertently legitimize operators in the grey market by allowing them to regularize their tax status without meeting the regulatory requirements imposed on licensed casinos. “Paying taxes doesn’t make an illegal activity legal,” said Cecilia Valdés, executive president of the ACCJ, pointing to court rulings that have ordered the blocking of online gambling sites.
Regulatory Uncertainty and Market Implications
Industry watchers will recognize the pattern—regulatory uncertainty continues to loom over Chile’s digital gambling market. The ACCJ has raised concerns that the SII’s tax measure could undermine efforts to establish a broad regulatory framework, which should also include consumer protection and effective supervision mechanisms. the wider question of whether taxation equals legitimation remains unanswered. Whether this impacts the ongoing legislative efforts is also unclear, as it comes during a delicate phase of bill discussions in the Senate. The actual legal status of these platforms remains untouched by tax payments, a point underscored by local casino operators who see a potential tilt towards an unlevel playing field.
What’s Next for Chile’s Gambling Legislation?
With Chile’s online gambling regulation bill still navigating the legislative pipeline, stakeholders remain on watch. The Senate discussions are ongoing, and the bill’s next major review could redefine the market—and the competitive dynamics between local and offshore operators. The coming months will be pivotal in clarifying the legal and regulatory status of digital gambling in Chile.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
