Operators anticipate Chilean Senate approval as regulators pass online gaming bill

Operators anticipate Chilean Senate approval as regulators pass online gaming bill

Chile is on the verge of a significant milestone in the realm of online gaming as its Chamber of Deputies has passed the bill that has been designed to regulate this burgeoning industry. The Chamber of deputies’ approval for the bill marks a crucial step in the direction of the legalization of online gaming in Chile. Now, the bill is set to proceed to the Senate for the final approval in the second legislative process.

The majority vote of the Chamber of Deputies in favor of the bill reflects the authorities’ commitment to establish a competitive online gaming market without making any compromise on the safety and security of gamers. If the bill receives final approval from the senate, it will reshape the regulatory landscape in the country, impacting entities like the Superintendence of Casino Games (SCJ), and the Internal Revenue Service (SII), and the Commission for the Financial Market (CMF).

The bill proposes for the creation of the National Policy on Responsible Gambling, involving main stakeholders from SCJ, the Ministry of Finance, as well as the Ministry of Health.

Operating licenses in the country will incur a cost of CLP 64.2 million (approximately US$74,00) for those looking to set up specific online betting platforms. In addition, online gaming activities will be subjected to value-added tax (VAT) as digital entertainment services. Operators will get the opportunity to reclaim tax credits for various expenditures, such as advertising services and software.

When it comes to gross gaming revenue (GGR), operators will be obliged to allocate 2 per cent of their revenues to support sports initiatives. This 2 per cent will be equally distributed among the National Sports Institute, the Chilean Paralympic Committee, Chilean Olympic Committee to help boost the development of Chilean sports.

Besides, operators will be subject to a 20 per cent tax to address various externalities, which mirrors the commitments of land-based casinos. An additional 1 per cent of the annual gross revenue will go to fund responsible gaming campaigns.

Chile’s groundwork for the online gaming legalization was initiated by the Ministry of Finance in February 2021, and it culminated in the release of the first online gaming bill in March last year. The recent approval by the Chamber of Deputies signals a transformative phase for Chile’s gaming industry, poised for growth & regulatory clarity in the online gaming sector.

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