Chile’s government has proposed a sweeping reform of the online gambling sector, combining a potential blanket advertising ban with a 22% tax burden on licensed operators and new restrictions on promotional bonuses.
Chile’s online gambling market could face one of its most significant regulatory overhauls in recent years after the government introduced a series of amendments to the bill designed to regulate online betting platforms.
The proposals, presented to the Senate’s Economy Committee in October 2026, include a general prohibition on online gambling advertising, restrictions on customer acquisition incentives and a new tax structure that would impose a combined 22% tax on operators’ monthly net gaming revenue.
The changes form part of a broader legislative initiative aimed at strengthening consumer protection, preventing gambling-related harm and establishing a formal licensing framework for online betting and casino businesses.
However, the proposed measures have already generated considerable debate within the industry, particularly over the potential impact of a complete advertising ban on licensed operators.
Advertising Ban Would Cover Licensed and Unlicensed Operators
One of the most significant elements of the government’s proposal is the intention to prohibit online gambling advertising regardless of whether an operator holds a valid licence.
The proposed restrictions would extend beyond gambling companies themselves, potentially covering advertising agencies, media organisations, intermediaries and other parties involved in producing or distributing promotional campaigns.
The government has also proposed restrictions on advertising through influencers and other promotional channels.
For licensed operators, violating the proposed advertising rules could be classified as a very serious regulatory offence, potentially resulting in the loss of their operating licence.
Advertising illegal gambling platforms could carry criminal penalties, with additional sanctions where campaigns specifically target minors.
The proposal also includes a transitional arrangement for certain existing advertising contracts. Operators holding temporary licences could maintain qualifying agreements for up to 12 months after the law is published, subject to restrictions. Television and radio advertising would only be permitted between 10 pm and 6 am during this transitional period, while campaigns would also need to include responsible gambling warnings.
The proposed blanket advertising prohibition would take effect following the processing of temporary licence applications and a subsequent implementation period.
Proposed 22% Tax on Online Gambling Revenue
Alongside the advertising restrictions, the government has outlined a new taxation framework for licensed online gambling companies.
Under the proposal, operators would pay 19% VAT on the difference between bets received and winnings paid to customers, together with an additional 3% tax calculated on the same basis.
This would create a combined tax burden of 22% on the relevant revenue base.
The licensing framework would also introduce additional financial requirements. Permanent licences would be valid for five years and carry an annual fee of 1,000 monthly tax units (UTM). Temporary licences would require an upfront payment of 3,000 UTM.
Furthermore, companies that have previously operated in Chile would be required to address outstanding digital VAT obligations covering the preceding 36 months, under the conditions outlined in the government’s proposal.
For international operators considering entry into Chile, the combination of taxation, licensing costs and marketing restrictions could become a major factor in evaluating the commercial viability of the market.
Bonuses and Promotional Incentives Also Targeted
The proposed reform would go beyond traditional advertising restrictions.
The government also wants to prohibit bonuses and promotional incentives designed to attract new customers or retain existing players, even when these offers are not publicly advertised.
This could significantly affect established online casino marketing strategies, including welcome packages, deposit incentives and retention campaigns.
For operators, the proposed restrictions would require a reassessment of customer acquisition and retention models, particularly those relying heavily on promotional offers.
The measures are presented as part of a wider responsible gambling framework intended to reduce incentives for excessive participation.
Industry Raises Concerns Over Impact on Licensed Operators
The proposed advertising ban has attracted criticism from the Chilean Association of Online Betting Platforms (aPAL), which represents companies operating in the sector.
The association has expressed support for stronger consumer protection and a clearer regulatory framework but argues that a complete advertising prohibition could undermine the objectives of market regulation.
Its main concern is that licensed operators would struggle to distinguish themselves from illegal offshore platforms if they were unable to communicate their legal status and promote their services.
According to the industry group, restricting advertising and promotional offers could make it harder to encourage customers to move towards platforms subject to regulatory supervision.
This argument highlights a central challenge facing policymakers: establishing a competitive licensed market while limiting gambling exposure and protecting vulnerable consumers.
What Happens Next?
Chile’s online gambling reform remains under legislative consideration. The government’s amendments are being examined by the Senate’s Economy Committee, and the proposed restrictions are not yet in force.
The legislative process also remains politically complex. Separate parliamentary proposals have raised more restrictive alternatives, including options that would prohibit online betting platforms or reserve certain activities for existing authorised lottery operators.
As a result, the final regulatory framework could differ from the government’s current proposal.
For international gambling operators, affiliates, technology suppliers and marketing agencies, Chile is becoming an increasingly important market to monitor.
If adopted in its current form, the proposed legislation would reshape how online gambling companies operate, advertise and compete in the country, making the outcome of the Senate discussions particularly significant for the wider Latin American iGaming industry.