Chile Senate Committee Backs Online Gambling Ban, Challenging Government Licensing Plan

Chile's Senate Economy Committee has supported proposals to prohibit private online betting platforms, marking a significant shift away from the government's plan to create a regulated and taxed gambling market.

Chile's debate over online gambling regulation has taken a major turn after the Senate Economy Committee approved two amendments seeking to prohibit private online betting operations.

The vote took place on November 9, with three senators supporting the proposals, one opposing them and one abstaining. Both amendments would substantially replace the existing text of Bill No. 14,838-03, which was originally designed to establish a licensing framework for online gambling.

One proposal, introduced by senators Gastón Saavedra and Diego Ibáñez, would prohibit the operation, promotion and advertising of online betting platforms. Commercial violations could result in prison sentences ranging from 541 days to five years and fines of 200–1,000 monthly tax units.

Another proposal, backed by Senate President Paulina Núñez and Senator María José Gatica, establishes stronger enforcement measures against unauthorised operators, including penalties of up to 15 years in aggravated cases.

The restrictions would not affect gambling activities already authorised under separate legislation, including state lotteries, licensed horse racing and regulated land-based casinos.

The government, however, supports licensing rather than prohibition. Its proposed framework included five-year authorisations, gambling taxes, advertising restrictions and consumer protection measures.

Deputy Finance Minister Sebastián Vallebona expressed disappointment that the committee had not examined the government's proposals before approving the prohibition amendments.

Industry associations also criticised the decision, warning that a blanket ban could undermine the development of a transparent, supervised market.

The two amendments are expected to be consolidated before further parliamentary consideration. The proposals have not become law and must still pass additional legislative stages.

The decision introduces substantial uncertainty for operators and investors, with Chile's online gambling market now facing two competing regulatory approaches: licensing or prohibition.