Chile Drops Legal Case Against Foreign Online Betting Operators

After nearly three years of scrutiny, Chile’s legal case against foreign online betting operators is officially over. The Public Prosecutor’s Office has announced it will not proceed with criminal charges against international platforms like Betano, Betsson, and Coolbet—a decision that brings relief to operators but leaves a glaring question unanswered. While this procedural closure ends legal uncertainty for now, it also highlights the pressing need for comprehensive gambling reform in Chile. Industry stakeholders, lawmakers, and regulators must now collaborate to establish a clear, modern framework to govern Chile’s booming digital betting market.

Chile Drops Online Betting Case, Underscoring Legal Grey Zone and Pressure for Reform

3 Key Points:

1. Chile’s Public Prosecutor has closed the investigation into foreign betting platforms without imposing sanctions.
2. The case began in 2022, driven by domestic stakeholders frustrated with unregulated international competition.
3. Operators now seek constructive dialogue with lawmakers to help shape Chile’s future online gambling laws.

Chile’s long-running investigation into the legality of foreign-owned online betting operators is coming to a quiet but impactful conclusion. After nearly three years of inquiry, the Public Prosecutor’s Office has opted not to pursue formal charges against several major international platforms operating in the country.

This development comes after a legal battle that began in June 2022, sparked by a formal complaint lodged by Chile’s traditional gaming stakeholders. Among them were Polla Chilena de Beneficencia (the national lottery), the Club Hípico (Chile’s largest horse racing organisation), and various land-based casino groups.

Their main argument centered around the legal ambiguity of foreign operators like Betano, Betsson, and Coolbet, which continue to offer services in Chile without a specific local license—yet without being formally prohibited either.

Why the Case Was Dropped

According to court filings made public on 11 April 2025, Deputy Prosecutor Rossana Folli confirmed the case’s closure following a prior April 4 court ruling that denied a request to extend the investigation period. Under Chile’s Criminal Procedure Code, this effectively ends the matter.

A final hearing is scheduled for 11 July, during which the decision to close the case will be formally communicated in court.

Operators Respond with Relief—and a Call to Regulate

In a statement dated 14 April, the Association of Online Betting Platforms welcomed the outcome, stating it validated the belief that their members had acted within the boundaries of current Chilean law.

The association acknowledged the existing regulatory vacuum and emphasized a willingness to collaborate with lawmakers and technical advisors to craft legislation that reflects modern digital betting realities.

“This is not just a legal win, but an opportunity to build a safer, fairer and transparent market,” the association stated.

Legal Vacuum Puts Pressure on Lawmakers

Chile’s gambling sector continues to grow, yet the legal framework remains outdated and largely silent on digital betting. This has created a competitive imbalance between strictly regulated domestic operators and international companies that function under foreign licenses, often from jurisdictions with lower tax burdens and lighter compliance requirements.

Regulatory uncertainty also impacts consumers. Without clear legislation, consumer protections, tax accountability, and integrity standards vary widely, leaving room for potential abuse or non-compliance.

While the judiciary has made its decision, the ball is now in the legislative court. Recent attempts to regulate the online market have stalled, but this high-profile case may act as a catalyst to accelerate discussions within Congress.

Chile’s decision to close the legal case against foreign online betting operators is both a relief and a warning. While it removes immediate legal risk for brands like Betano, Betsson, and Coolbet, it exposes the deeper issue: Chile’s gambling laws are no longer fit for purpose. With digital betting on the rise, the need for a modern, enforceable, and equitable regulatory framework has never been more urgent. As the 11 July hearing formally ends this chapter, the real work begins—crafting the future of online gambling in Chile.