A Senate committee has voted to replace the government’s licensing bill with an outright ban on private online betting. The government’s tax-and-licence package has been set aside for now.
Chile’s plan to license and tax private online betting operators has suffered a major setback. On Monday 9 November 2026, the Senate Economy Committee approved two amendments that would ban online betting platforms instead of regulating them. The vote was three in favour, one against and one abstention, according to Emol and other Chilean media. The committee chair said the two texts will be merged at the next session.
Both amendments are “indicaciones sustitutivas”: if adopted, each would replace the text of the bill entirely. The package the government had presented in late October was therefore set aside without being debated.
Context: a bill that began as regulation
The online betting bill was introduced in 2022 and has already passed the Chamber of Deputies, Emol reports. It is now in its second constitutional stage in the Senate, where it was approved in principle. The Economy Committee is reviewing it article by article, and the Senate Finance Committee will examine it next.
In late October, the government of President José Antonio Kast sent the committee a 114-page package of amendments that would have created a regulated private market. According to Emol, it included:
- five-year licences with an annual fee of 1,000 UTM (Chile’s inflation-linked monthly tax unit);
- a ban on all advertising by platforms, licensed or not;
- 19% VAT on the difference between amounts staked and prizes paid, plus an extra 3% tax;
- a fund to tackle gambling addiction.
iGaming Business dates the government’s submission to 26 October; Emol says 27 October.
What the committee approved
The first amendment was tabled by Senators Gastón Saavedra (Socialist Party), who chairs the committee, and Diego Ibáñez (Broad Front). It would ban operating, running, offering or advertising online betting platforms in Chile. Under the text as summarised by Emol and iGaming Business:
- anyone who does so for profit could face between 541 days and five years in prison, plus fines;
- internet providers, app stores and payment companies would have to block access, downloads and transactions;
- existing legal gambling would be exempt, including the state lottery Polla Chilena de Beneficencia, Lotería de Concepción, authorised racetracks and land-based casinos.
The second amendment, from Senate President Paulina Núñez and Senator María José Gatica, both of National Renewal (RN), targets platforms without legal authorisation. CNN Chile reported that it would rule out a new licensing market and allow courts to block sites permanently. It would also add measures on payment services and restrict related advertising. Penalties would reach 15 years in prison and fines of up to 10,000 UTM in aggravated cases, such as deliberately targeting minors or continuing to operate in defiance of a final blocking order.
Saavedra, Ibáñez and RN Senator Manuel José Ossandón voted in favour, according to The Clinic. Matías Walker (Demócratas) voted against. Paulina Vodanovic (Socialist Party), substituting for Ricardo Celis, abstained.
The arguments
Supporters of a ban point to Chile’s courts. Saavedra told The Clinic that problem gambling had increased and that prohibition was the best option, “especially considering that the Supreme Court said these were illicit and illegal games” (our translation). iGaming Business has reported earlier Supreme Court rulings against unauthorised betting sites in cases brought by Polla Chilena de Beneficencia and Lotería de Concepción. Saavedra also cited Brazil as evidence that blocking platforms can work. That comparison comes as Brazil’s own betting ban faces challenges in its Supreme Court.
The government opposed the move. Deputy Finance Minister Sebastián Vallebona told Emol the government regretted that its amendments, worked on “for three months” with senators’ advisers, could not be reviewed. He said Chile was losing the chance to debate regulation focused on protecting families, keeping minors out and preventing a rise in problem gambling.
The industry is split. The Chilean Association of Online Betting Platforms (aPAL), whose members include Coolbet and Betway, said “prohibition is not the way”, according to Emol. Another group, Agrupación iGaming Responsable, whose members include Betano and Novibet, said the texts keep exceptions for those who already hold legal authorisations. In its view, that would restrict who can offer betting rather than end it, and could push demand to illegal operators beyond Chilean oversight. The land-based casino association ACCJ was more cautious. Its executive president, Cecilia Valdés, said it was “premature” to predict the final regime, while calling for licensed casinos to be allowed to operate online.
Who is affected
International operators already active in Chile are the most exposed. The Agrupación iGaming Responsable statement suggests the ban texts would close the market to new entrants while existing legal gambling continues. Emol notes that Chile’s tax service set up a mechanism in June to collect digital VAT from platforms, even though they operate without a licence. The ACCJ calls this a contradiction.
For Chilean players, nothing changes immediately: the bill is still in committee. If a ban became law, payment and access blocking would fall on internet providers, app stores and payment firms. The same pressure points are being targeted elsewhere, including in Britain’s new drive against illegal operators’ money.
What happens next
The committee secretariat will merge the two texts and present them at the next session, Saavedra told The Clinic. If the committee adopts the merged text, Saavedra said, “this legislative process would be closed” at committee stage, adding: “Then we’ll see what happens in the chamber” (our translation). According to The Clinic, the floor vote would test support for the government’s licensing approach against the senators’ ban. Emol reports that the bill must also pass through the Senate Finance Committee. Until those votes take place, the outcome remains open.
Gambling is for adults aged 18 and over.
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