(AsiaGameHub) – By: Elena Rostova
Chile’s tax authority’s move to collect taxes from illegal online betting operators has triggered a massive regulatory contradiction. The country’s Supreme Court already banned online gambling entirely, but the new tax rule treats the activity as taxable. Lawmakers and licensed casino operators argue the move de facto legalizes banned activity. Public confusion has grown for years as unregulated platforms advertise widely across local media, and the new rule will deepen that problem.
SII director Jorge Trujillo stood by the decision, saying the agency is only collecting outstanding tax dues via Resolution No. 69, not promoting the illegal industry. The Economy Committee has summoned Finance Minister Jorge Quiroz and gaming regulators, and requested a formal statement from the Supreme Court on the apparent contradiction. Local casino trade group ACCJ estimates the unregulated online gambling sector is worth $3.1 billion, but all operators targeting local players have no local commercial base.
The dispute lays bare Chile’s failure to build a comprehensive online gambling regulatory framework, despite repeated political efforts starting in 2022. Taxing offshore operators with no local presence is functionally unenforceable right now, even if the inter-agency conflict gets resolved. Chile will have to formalize full legalization and regulation of the sector first, or its tax plan will never deliver on its intended targets, and consumer risks will keep rising.
Author bio: Elena Rostova, public policy expert specializing in compliance assessments for governments and sovereign wealth funds.