Chile plans betting ad ban & 22% online gambling tax

Chile’s government has proposed a full ban on online betting advertising, giving temporary licensees up to one year to wind down marketing contracts signed before the law is published.

The ban, set out in amendments from President José Antonio Kast’s government, would begin 30 days after Chile’s Superintendencia de Casinos de Juego finishes ruling on all temporary license applications. In the meantime, broadcast ads could only air between 10 pm and 6 am with a warning about gambling addiction. Promotions and bonuses would be banned even when not advertised. State lottery operators Polla Chilena de Beneficencia and Lotería de Concepción would be exempt for their own draws.

Arturo Fermandois and José Manuel Díaz de Valdés, constitutional lawyers at Estudio Fermandois, stated:

“The legislature is obliged by the constitution to legislate on this matter without delay.”

Licensed operators would be charged 19% VAT and an extra 3% on stakes minus winnings, for an effective rate of 22%. Licenses would run for five years at an annual fee of 1,000 UTM, while companies already taking bets in Chile would need to pay three years of back VAT to qualify for a temporary license.

The Senate’s Economy Committee started reviewing the amendments on October 27. A new legal opinion argues that the absence of a framework has left the market in legal uncertainty.