Chile seemed to be progressing towards the legalization of online gambling in December 2023, as the Chamber of Deputies approved a bill to regulate iGaming.
However, progress has been minimal since then, as the bill remains stuck in the Senate, a situation described by Asociación Chilena de Casinos y Juego (ACCJ) President Cecilia Valdés as “slow and fragmented.”
The focus of the debate has been on the Senate Finance Committee, where tax, institutional, and enforcement issues are under review, as explained by Valdés.
A lack of political commitment has resulted in no advancement of the bill for over a year, despite public interest from authorities in the enactment of online gambling legislation.
“More worrying is the recent removal of the urgency status, leading us to believe that both the executive and legislative branches lack the necessary dedication,” Valdés tells iGB.
“Additional contributing factors include technical complexity, disagreement on certain points, pressure from unofficial entities, and legal ambiguities resulting in unclear judicial rulings.”
Could 2025 be the year when online regulation in Chile comes into effect?
Chile finds itself in a region that is heating up for the gambling industry, with neighboring LatAm countries like Brazil and Peru already regulating online gambling since the beginning of 2024. Paraguay recently ended its betting monopoly, further opening up the market.
Despite Chile’s online regulation process stalling, concerns arise that the market might lag behind and attract illegal operators excluded from other regional markets.
Nevertheless, Valdés is optimistic that this could be the year Chile follows suit in online regulation.
“Considering Chile’s legislative pace, a realistic timeline for the bill to pass would be 2025, but only if there is political will and prioritization,” Valdés continues.
“However, with this being an election year, progress could be further delayed.”
The potential growth of online gambling in Chile
Valdés is confident that Chile, with its high digital penetration, widespread banking access, smartphone usage, and strong sports and betting culture, can join Peru and Brazil in becoming a top player in the competitive LatAm market.
If regulations are updated and strengthened, Valdés envisions a bright future for the Chilean market.
“With a modern and robust regulatory framework, Chile could emerge as one of the leading markets in the region, generating substantial revenue annually and setting new standards for responsible and transparent gaming,” Valdés explains.
Valdés references a recent study by Yield Sec, estimating that the Chilean online gambling market reached $3.1 billion in 2024, with potential annual tax revenues of up to $800 million from a regulated sector.
In addition to revenue, Valdés emphasizes that regulation could enhance consumer protection by ensuring responsible gaming standards and fair competition, thereby restricting the illegal market.
H2 Gambling Capital forecasts that the land-based gambling sector in Chile could achieve a gross win of $792.3 million by the end of 2029.
H2GC also predicts that online gross win for onshore operators in Chile could double from an estimated $59.8 million by the end of 2025 to $160.9 million by the conclusion of 2026, subject to the arrival of new regulations.
Recent prosecutor’s decision: Not an acquittal
Amid uncertainty over online gambling regulation, the Chilean Public Prosecutor’s Office recently decided not to pursue a case declaring online betting platforms illegal.
Valdés clarifies that this decision does not equate to an “acquittal or legal validation” of such platforms but reflects the legal framework’s limitations in prosecuting offshore companies operating in Chile.
Valdés stresses: “At ACCJ, we are deeply concerned that these decisions are being misinterpreted as a form of ‘de facto legalization.’ We continue to advocate for clear and prompt regulation to eradicate this illegal sector and uphold the rule of law.”
