In December 2023, a bill that seeks to regulate online betting sites was approved in the Chamber of Deputies. The issue was discussed when noticing a large legal vacuum to regulate the industry, while numerous betting sites operate without supervision in the country.
Currently, in Chile there are three large companies that dominate the casino gaming industry. These are the Enjoy, Dreams and Marina del Sol groups. Together, these companies account for more than 80% of the industry, dominating almost twenty casinos throughout the country. The situation is being investigated for a possible case of collusion.
On the other hand, according to information from the Superintendency of Casinos and Games, more than 900 betting platforms operate outside the law in Chile. Among them, there is also the presence of virtual casinos or online betting pages, whose activities would be outside any legal framework.
online betting
In November 2023, CIPER published a report that broke down an investigation into online betting sites. In the light it remained the relationship between different soccer teams and Chilean marketing agencies, intermediaries of online betting pages.
Likewise, the journalistic work highlighted how an investigation of more than a year and a half, carried out by the Public Ministry, was frozen after concluding that there is a legal vacuum that does not allow criminal prosecution for illegal exploitation of games of chance. The argument? The Law that regulates the industry would be very old, which is why There is no rule for bets placed virtually.
Far from the eyes of the Prosecutor’s Office were the famous betting pages Betsson, Betano, Coolbet, Betway, Estelarbet, among others, with presence in Chile. Besides, The Chilean companies linked to these betting houses are TVO Sport (or 1190) and Vibra Marketing.
On this issue, defenders of online gambling point out that the activity cannot be declared illegal, since it is not mentioned in the Penal Code. Meanwhile, the Chilean law is clear about which companies can exploit gambling. Such is the case of the Polla Chilena de Beneficiencia, the Concepción Lottery, physical casinos and Teletrak.
For this reason, the executive director of Polla, Macarena Carvallo, has emphasized that “The Supreme Court has clearly indicated that sports betting can only be operated by Polla and, consequently, the activity of unauthorized platforms is illegal.”
Another point that causes conflict around online casinos has to do with bank transfers to raffle winners. The Internal Revenue Service (SII) is clear on the issue and indicates the obligation of taxpayers to declare income and pay the corresponding taxes. However, online casinos are not authorized, so It is not clear whether they pay taxes for their operations in the country.
Sanctions on the way
Everything indicated in the CIPER report is correctly stated according to current regulations. However, the situation could change in the near future. It all depends on how long it takes for a bill to be approved by the Senate and enacted. bill regulating online betting platforms.
The initiative was already approved by the Chamber of Deputies in December 2023. With such action, the aim is to generate a competitive market that includes currently legal games. Likewise, the project aims to make the origins and destination of resources transparent obtained by online betting houses. Contributing to tax collection.
The regulations will establish the obligation to report on the final beneficiaries of the platforms, allowing us to know the origin and destination of the funds and avoid conflicts of interest. Likewise, with the new regulations, it will be possible to regulate the online betting market to avoid crimes such as money laundering and protect users through a National Responsible Gaming Policy.
On the other hand, the project establishes a regulatory design that balances incentives for regularization and severe sanctions for those who remain illegal. Granting new powers to entities such as the Gaming Casino Superintendence (SCJ)the Commission for the Financial Market (CMF), the Internal Revenue Service (SII), Subtel and the Financial Analysis Unit (UAF).
In this way, the bill seeks to improve the current situation, where Illegal platforms operate without user protection standards, without paying taxes and without supervision. Establishing crimes to ensure the effectiveness of the criminal prosecution.
The contemplated crimes in the bill will be related to the following actions: exploiting unauthorized platforms, promoting or participating in the advertising of an unauthorized platform, opening accounts with false information or violating security, using other people’s accounts or providing their own to third parties, altering a betting object by affecting its randomness, or obstructing inspection by providing false information.
Complicity of supervisory entities
Will a law that regulates online betting platforms be enough to achieve order in casino gaming activities in Chile? A Cambio 21 report left on the table a series of irregularities in the gambling and entertainment industry in the country. Delivering a hopeless prognosis and making it clear that Authorized casino houses also commit crimes without being punished.
Such would be the case of the three large companies that dominate the Gaming Casino market in Chile: Enjoy, Dreams and Marina del Sol. While Enjoy has 9 awarded casinos by the Superintendency (industry regulatory body) throughout the country, The Marina del Sol group operates four casinos licensed by the State of Chile. While, Dreams has been awarded five casinos and, additionally, operates the municipal casinos of Iquique and Puerto Varas.
It is worth remembering that Dreams also obtained the operating permit for the gaming casino in the Maule Region, on November 10th. Currently, the casino project of the owners of Monticello is not yet in effect, for not having a place for their operations. However, everything indicates that it would be Built in the Ex Fital area, a flood-prone area, located a few meters from the Río Claro Urban Wetland.
Now, although they have been duly regulated by the Superintendency, the three leading casino gaming companies, Enjoy, Dreams and Marina del Sol, are being investigated for the crime of collusion more than a year ago National Economic Prosecutor’s Office (FNE).
