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Chile is moving closer to establishing a formal regulatory framework for online gambling after the Senate’s Economy Commission continued work on legislation designed to bring the country’s betting market under state supervision.

The bill, which has been under discussion for several years, aims to create a regulated, transparent and taxed online gambling market while introducing stronger safeguards for players and tougher measures against unlicensed operators.

The latest discussions focus on licensing requirements, taxation, responsible gambling, consumer protection and mechanisms to combat illegal betting websites.

Senate Commission Continues Work on Online Gambling Bill

The Senate Economy Commission is currently working with the Executive on an agreed draft of the legislation.

The proposal has already gone through several stages of Chile’s legislative process. In May 2026, the government gave the bill the highest level of legislative urgency, requiring the Senate to address it within a limited timeframe.

However, the legislation remains under discussion rather than becoming law. Senators and government representatives are continuing to negotiate specific provisions before the bill can move through the remaining stages.

The long-running process reflects the complexity of regulating an online market that has expanded while operating without a dedicated comprehensive legal framework.

New Licensing Rules Could Reshape the Market

One of the central issues under consideration is the licensing system for online gambling operators.

Recent proposals from the Senate Economy Commission would require operators seeking a licence to establish a local corporate presence and maintain a physical address in Chile. The framework would also introduce greater transparency around the ultimate beneficial owners of gambling companies.

Such requirements could significantly affect international operators currently targeting Chilean consumers without a dedicated local structure.

The proposed system would give authorities greater control over which companies can legally offer online betting and gaming services to Chilean players.

Taxation and Sports Funding Included in Proposal

Taxation is another major element of the proposed framework.

The legislation is expected to establish a specific tax regime for licensed online gambling operators. Part of the additional tax revenue could be directed toward sports and initiatives designed to prevent gambling-related harm.

The government and lawmakers see regulation as a way not only to supervise the industry but also to bring an existing economic activity into the formal tax system.

For operators, however, the final tax structure will be one of the most important factors determining the attractiveness of the Chilean market.

Stronger Player Protection Measures

Consumer protection is also becoming a central part of the proposed legislation.

Measures under discussion include stronger age-verification requirements, including biometric controls, as well as restrictions designed to prevent certain individuals from betting.

The proposal also includes responsible gambling provisions aimed at reducing the risk of gambling-related harm.

Sports integrity is another area of concern. The draft framework would reportedly prohibit athletes and other sports insiders from betting on events where their position could create a conflict of interest.

Chile Wants to Combat the Illegal Market

The proposed regulatory framework comes amid increasing pressure to address unlicensed online gambling.

Chile currently does not have a comprehensive law specifically regulating online gambling. The legal situation has remained uncertain for years, with authorities and courts taking different approaches to the status of offshore betting platforms.

The Supreme Court ruled in 2025 that online gambling is illegal unless expressly authorized under Chilean law, adding further pressure for lawmakers to establish a clear framework.

More recently, Chilean authorities have ordered internet service providers to block dozens of betting URLs as the regulatory debate continues.

A licensing system would give the government a clearer mechanism for distinguishing authorized operators from illegal platforms.

What Regulation Could Mean for Operators

If the bill is ultimately approved, Chile could become a more structured and predictable market for online betting and gaming.

Licensed operators would gain a formal legal route to serve Chilean customers, while regulators would obtain greater powers over advertising, taxation, player protection and compliance.

At the same time, stricter local-presence requirements and higher compliance costs could make market entry more difficult for some international brands.

The final balance between taxation, licensing fees, local establishment requirements and responsible gambling obligations will therefore be crucial for the industry’s development.

Chilean Online Gambling Market Remains in Transition

The Senate’s latest discussions represent another step in a legislative process that has lasted for more than four years.

The objective is increasingly clear: replace the existing legal uncertainty with a system under which online gambling operators must obtain licences, pay taxes and comply with consumer-protection and responsible-gambling requirements.

However, the legislation still needs to pass the remaining stages of the Chilean legislative process before the new framework can take effect.

For now, the country’s online gambling market remains in transition, with lawmakers attempting to establish rules that could fundamentally change how betting and gaming companies operate in Chile.

Source: https://bookmaker-ratings.ru/news/categories/business-gambling-gaming/senat-chili-gotovit-legalizatsiyu-i-regulirovanie-rynka-onlayn-gemblinga/