Chile’s stalled pursuit of a regulated online gambling market continues to cause political division, as government bodies move to break a legislative deadlock that has persisted for more than four years.
Last week, the Internal Revenue Service (SII) issued Resolution No. 69/2026, creating a registration mechanism for foreign online casino and betting platforms serving Chilean consumers. The surprise measure allows offshore operators to register with tax authorities and comply with VAT obligations on digital services provided in Chile.
As reported by SBC Noticias, the resolution immediately reignited debate over whether the government was effectively legitimising an industry that remains without explicit legal authorisation under Chilean law.
The SII maintained that the measure relates exclusively to tax compliance and does not constitute regulatory approval for online gambling activities. Under the resolution, operators without a domicile or residence in Chile must register under the country’s foreign digital services tax regime, apply VAT to revenues generated from Chilean customers and settle outstanding liabilities for previous tax periods.
“Given that these platforms, despite not being authorized, continue to carry out their activities subject to VAT, even openly advertising their operations, we must ensure that they pay the taxes they owe,” the SII stated.
The decision has drawn criticism from land-based gaming stakeholders and political figures who argue that the measure risks creating further confusion regarding the legal status of online betting.
Cecilia Valdés, President of the Chilean Association of Gaming Casinos, accused the government of validating an illicit industry in pursuit of additional tax revenues.
“Betting platforms have been advertising for years on television channels, social media, and in the press, which had already established the perception that their operation is legal. The SII resolution would only deepen that confusion.”
Valdés further argued that authorities were prioritising tax collection over consumer protection, warning that the expansion of unregulated online gambling continues to expose players and licensed businesses to unnecessary risks.
The dispute highlights Chile’s ongoing failure to establish a comprehensive regulatory framework for online gambling, despite repeated political efforts since 2022.
The initial attempt to regulate the sector was embarked upon under the Presidency of Gabriel Boric, whose administration introduced legislation designed to license operators, establish tax obligations and introduce responsible gambling safeguards. However, progress became mired in legal challenges brought by incumbent gaming stakeholders, most notably Polla Chilena de Beneficencia and Teletrak, who jammed the judicial system with lawsuits to ensure that privileges were protected.
At the same time, Chile’s Superintendency of Casinos (SCJ) maintained that online gambling lacked explicit legal recognition under existing legislation. Subsequent rulings by Chile’s Supreme Court reinforced that interpretation, ordering actions against offshore operators and directing authorities to pursue measures against illegal gambling services.
Despite the setbacks, momentum behind regulation has continued. President José Antonio Kast has signalled support for establishing a regulated online gambling framework, while courts, regulators and industry bodies have increasingly called for direct legislative intervention to resolve the status of online betting once and for all.
Finance Minister Jorge Quiroz defended the SII’s decision, insisting that tax authorities were merely fulfilling their statutory obligations.
“The service is simply fulfilling its duty, without having to comment on whether or not it is legal.”
Meanwhile, the Chilean Association of Online Betting Platforms (APAL) welcomed the measure, arguing that it restores a pathway for operators to declare and pay taxes in Chile while providing greater certainty for the sector.
“The decision reinforces the need to move forward with the legislative process for the bill that regulates online betting,” APAL stated.
The National Federation of Casino Unions (Fenasicajh) echoed calls for reform, stressing that administrative actions alone cannot resolve the industry’s future.
“Administrative measures alone are no longer sufficient. Chile needs modern and definitive legislation.”
For many observers, Resolution 69/2026 serves as further evidence that Chile’s authorities increasingly recognise the economic reality of online gambling activity. Yet until lawmakers complete the regulatory framework first proposed in 2022, questions over legality, licensing and consumer protections are likely to remain at the centre of one of Latin America’s most protracted gambling policy debates.
