Chilean lawmakers seek to block online betting tax collection
Chilean UDI deputies plan a 2027 budget amendment to stop the SII collecting taxes from online betting platforms, amid a legal dispute over unlicensed operators and stalled Senate regulation.
Deputies from Chile’s UDI party plan to amend the 2027 Budget Law to prevent the Servicio de Impuestos Internos (SII) from collecting taxes from online betting platforms. Marco Antonio Sulantay and Eduardo Cretton said the measure would block SII mechanisms for taxing online betting or other unauthorised activities, seeking opposition support.
The proposal comes amid legal uncertainty. The Supreme Court ruled in September 2025 that unlicensed operators act illegally. The Santiago Court of Appeals has continued enforcement, and the Subsecretaría de Telecomunicaciones ordered 42 betting websites blocked. The SII has pursued VAT measures, while the Comptroller General declined to rule. Senate legislation for a regulated market remains in its second constitutional stage.
The deputies said they do not oppose regulation but argue taxation should follow clear operating rules. Sandra Kemp of iGaming Responsable told Diario Financiero that neither blocking nor tax collection amounts to effective regulation, calling revenue collection transitional rather than a replacement for licensing, oversight, traceability and minor protections. The market generates about US$650m in gross gaming revenue, which H2 Gambling Capital projects could approach US$1.2bn by 2028.
