Chile Orders Blocking of 42 Unauthorized Online Gambling Sites

The Undersecretariat of Telecommunications (Subtel) of Chile has announced that 42 websites for online gambling from abroad will be blocked because they are not part of the current regulatory framework.

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The measure is part of decisions made by the Supreme Court and the Santiago Court of Appeals, and it will apply to telecommunications companies that offer Internet service, including Entel, Movistar, Claro, GTD, WOM and VTR, who will have 48 hours to block access to the platforms identified in the decision.

DNS Blocking Ordered by Subtel

Subtel will implement Domain Name System (DNS) to limit access to the sites. The resolution aims to maintain neutrality and user privacy in the network and minimise the likelihood of unintentionally blocking legitimate services.

The list of domains was submitted to Subtel by the Superintendency of Casinos (SCJ) that is in charge of the review and validation of online platforms that are deemed to be running without authorization.

“As Subtel, we are strictly complying with the rulings of the courts and the regulatory framework, deploying an efficient and coordinated technical solution that protects people’s digital security. With this order, we are requiring telecommunications companies to act with the utmost speed to block access to online casino platforms operating outside the law,” said Subtel Undersecretary Romina Garrido.

Why Are the Gambling Sites Being Blocked?

The action comes as Chile continues to debate how online gambling should be regulated. The blocking order was based on a legal protection suit that Lotería de Concepción had filed against the telecommunications companies because the platforms were found to be outside the current regulation.

The Supreme Court set out a ban on the transmission and promotion of illegal gambling, and the Santiago Court of Appeals ruled that DNS blocking could be implemented to comply with that decision.

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If the Chilean online gambling bill is passed, the situation may go on to change. The plan is to have a licence for online gambling sites and is being considered by the Senate.

Tax Rules Add to Regulatory Debate

The Internal Revenue Service (SII) of Chile has also recently received some attention regarding the situation of foreign online gambling operators. The agency issued Exempt Resolution No. 69, which set the tax liability for foreign platforms that register under the corresponding regime in Chile to provide services to Chilean customers.

However, the measure has sparked discussions because the platforms are still subject to judicial determinations of whether they have been authorized to operate in the nation. It has been said by industry players that the tax registration system might give an impression of approving non-registered activities. The SII, however, says that registration does not give the right to operate; questions of legality and authorization for operating under regulation are in the realm of other authorities.

Until now, 25 platforms have been registered in the SII.

How Will the Blocking Process Work?

The first step is the identification of domains, subdomains, and mirror sites of gambling platforms. The SCJ then verifies and certifies which domains are operated by unauthorized operators, and then the list of websites is provided to telecommunications companies by Subtel, and the companies block the websites.

The companies have 48 hours to comply with the measure, and they will have to prove it directly to the Santiago Court of Appeals. The actual date and time for each block should be included in their reports.

The mechanism may be applied to other domains, subdomains, and mirror sites that are connected with the same platforms and have previously been identified, verified, and validated by the SCJ. The measure strengthens Chile’s existing stance to curb illegal gambling online, as the nation mulls a more general approach to licensing the digital gambling sector.

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Source: SBC Noticias