Chile at the crossroads of online gambling: caught between court blockades and a law that never arrives

The regulation of online gambling in Chile is going through a confusing moment. Although the country recognizes the massive existence of betting platforms and digital casinos operating in its territory, the specific legal framework to order them remains unapproved. The result: an active, millionaire and popular market, but legally in limbo.

What does the law say?

It should be remembered that Currently, Law No. 19,995 exclusively regulates land-based casinos. In fact, the law states that "Gambling Casino" is considered "the establishment, property or part of a property, consisting of an enclosed area, inside which the authorized games of chance will take place".

Therefore, there is no specific regulation that formally authorizes, regulates, or supervises online gambling. This has generated an ambiguous situation: on the one hand, there is no licensing system in place; on the other hand, there is no regulation that has fully integrated digital operators into the formal ecosystem.

In this context, the Superintendence of Gaming Casinos has recognized that it does not have legal powers to supervise online platforms, since its competence is limited to face-to-face gambling.

The bill

However, The Senate Finance Committee gave the green light to Bill No. 14,838-0, an initiative that establishes a regulatory framework for sports betting platforms and online casinos as we explained at the time in this SoloAzar article.

The project that does not materialize

For several years, a bill aimed at regulating online gambling through a licensing system, payment of specific taxes and greater control requirements has been discussed in Congress. The initiative contemplates:

• Licensing to operators that meet technical and financial requirements.
• Payment of special taxes and contributions to sports and the tax treasury.
• Player Protection Measures and Advertising Restrictions.
• More effective tools to block unauthorized operators.

However, legislative progress has been slower than expected. Political differences, the debate on the tax burden and pressure from different actors – physical casinos, international platforms and sports clubs – have delayed the final approval.

The Supreme Court hardens the position

In the face of legislative inaction, the judiciary has been at the centre of the debate. The Supreme Court of Chile has determined that online betting platforms lack express legal authorization and, therefore, their operation is illegal under current regulations.

In fact, on September 30, 2025, the Third Constitutional Chamber of the Supreme Court issued a landmark ruling that redefines the regulation of online gambling in Chile. In fact, the highest Chilean court established jurisprudence by immediately blocking many online betting sites in the Andean country.

Based on these rulings, blocks of access to unlicensed websites have been ordered, forcing internet providers to restrict access to certain platforms. However, the practical impact has been limited, as many operators continue to operate using alternative domains and technology tools that circumvent constraints.

A mostly "irregular" market

Studies carried out by Apuesta Legal Chile estimated that by the end of 2025 up to 83% of traffic to online betting platforms in Chile corresponds to operators without formal authorization. This figure reveals not only the magnitude of the phenomenon, but also the fiscal cost of a market that today is not taxed under a regulated scheme.

The absence of regulation also implies a lack of clear standards in terms of consumer protection, prevention of money laundering and promotion of responsible gambling.

Regulatory uncertainty and economic pressure

The prolongation of this scenario generates a double effect: on the one hand, international operators are cautiously watching the Chilean market; on the other, the State loses potential revenue in a sector that already moves significant figures.

In conclusion, it can be thought that Chile thus faces a strategic dilemma: maintain a reactive scheme based on judicial rulings and partial blockades, or accelerate a comprehensive regulation that allows the market to be ordered, collect taxes and strengthen the protection of users.