Chile Faces New Online Gambling Debate Following Tax Authority Resolution

On June 2nd, Chile’s Internal Revenue Service (SII) passed Resolution No. 69 of 2026, requiring gambling platforms to register and pay taxes.

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In accordance with the new resolution, platforms without domicile or residence in Chile that provide gambling-related digital services to residents should be registered at the agency and perform the VAT obligation of foreign digital services providers.

The regulation aims to strengthen tax fairness in the case of companies earning money from Chilean consumers to declare taxes. According to the SII, the measure intends to prevent “uncontrolled spaces and inequality” between companies that perform tax obligations and do not.

VAT will be applied to the total value of the receipt as payment for these services, regardless of the nature of the income received. In addition, online betting platforms registered in the new system will pay overdue VAT for services rendered during the previous 36 tax periods.

Resolution Draws Controversial Reactions from Various Parties

According to the statement issued by the SII, the measure deals solely with tax obligations and does not regulate online gambling legalization or supervise gambling platforms.

“We must ensure that these companies pay taxes corresponding to their activities because they continue providing gambling services despite not being legalized“, the service noted.

For years, Chile’s Superintendence of Casinos (SCJ) has stated that there is no legal permission for online gambling operations in Chile, and only lotteries, racetracks, and casinos can offer gambling services to the residents of the country. This conclusion was made earlier by the Chilean Supreme Court, requiring platforms to stop offering services to Chile and asking the Subsecretariat of Telecommunications (Subtel) to block them.

However, the regulation immediately generated strong reactions from many different parties. The president of the Chilean Association of Casinos, Cecilia Valdés, criticized the move, saying the authorities legalized an illegal gambling platform in order to earn some extra money in taxes.

“For years, betting platforms advertised their services on TV, social media, and news portals, creating a misconception about the legal status of this business. The decision of the SII only confirms this misunderstanding“, she said.

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Reactions from Political Leaders and Gambling Organizations

Moreover, the politician pointed out that the authorities might be pursuing tax revenue without thinking of consumer security. In addition, Chilean Senator Gastón Saavedra accused the authorities of contradicting democracy and the rule of law since the legislation concerning online gambling continues to be discussed in Congress. In particular, he stressed that illegal gambling growth leads to negative social consequences, such as addiction, problem gambling, and crime.

Another Chilean senator, Enrique van Rysselberghe, called the regulation “a mistake” as platforms violating existing legislation should be closed down. He said that the SII has incorrectly interpreted the law.

However, in turn, the finance minister of Chile, Jorge Quiroz, stated that the service performed its duties correctly without commenting on the legality of the services of online betting platforms. “The service is just performing its functions without having to decide whether this is legal or not“, the official argued.

Industry Associations Support Resolution Implementation

Nevertheless, the Chilean Association of Online Betting Platforms (APAL) welcomed the new rule, emphasizing that the resolution allows for recovering the mechanism of paying taxes in Chile.

“This measure returns a mechanism to declare and pay taxes in our country, which is extremely important in the modern gambling sector“, the organization noted in its statement.

In addition, the national association of Casino workers (Fenasicajh) stressed that there is an urgent need for passing legislation on online gambling.

“The process of digitalization and emergence of betting websites cannot be seen as a threat to our industry. At the same time, for this ecosystem to work successfully, the same level of security should be maintained as in land-based casinos“, the organization stated.

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Source: SBC Noticias