Chile Proposes Responsible Gambling Tax Amid Online Gambling Bill Advancements

In a groundbreaking move toward reshaping Chile’s gaming landscape, the nation’s online gambling bill is set to introduce a multifaceted tax framework, marking a significant step in the journey to legalize online gambling this year. Proposing a 20% tax on gross income from online gambling operations, along with a responsible gambling tax of 1% applicable to all gambling verticals, including land-based gaming, these tax measures are poised to underpin the country’s regulatory framework.

As Chile surges forward in its preparations for regulated online gambling, the Chamber of Deputies’ Economic Commission has published new articles that endorse these tax recommendations. This transformative legislation also necessitates online licensees to contribute 1,000 monthly tax units (UTM) annually, with UTM values fluctuating in accordance with the consumer price index.

Moreover, the commission’s forward-thinking approach extends to sports betting, where operators may face an additional 2% tax on their income. This supplemental levy aims to fuel the growth of Chilean sports, with contributions slated for sports federations, the Olympic Committee, and the Paralympic Committee, to be managed by the National Sports Institute, IND. In a pivotal move, the commission responded to a request from Polla Chilena, the state-owned pools betting operator, by eliminating restrictions on prize returns, further bolstering the gaming landscape.

However, this landmark development arrives in the wake of significant industry shifts, as Chile’s National Association of Professional Football (ANFP) terminated its title partnership deal with Betsson AB for the Campeonato Nacional, in response to a recent Supreme Court ruling. This ruling clarified the legality of gambling in Chile and underscored the need for sports organizations to sever ties with unlicensed betting operators.

As these progressive tax measures take center stage in Chile’s legislative landscape, the fate of Bill 035/2022 hangs in the balance, awaiting approval by the Chamber of Deputies. Amidst these transformative changes, Chile stands on the cusp of a new era in its gaming industry, poised to embrace responsible gambling practices and taxation to fuel its future.