Online betting platforms: why is it important to regulate them? by Latamwin

The bill that regulates online betting platforms is being discussed in Chile, an initiative that was entered in March 2022. In the processing process, the current government has incorporated more than 80 indications and the Chamber of Deputies has reviewed close to 30, which expresses the will of all the actors involved to obtain a regulation for Chile soon.

Why regulate?

This transversal interest has as its main objective to provide a clear regulatory framework that protects users, their families and the environment.

1. Protecting the people who use these platforms is one of the first motivations for legislating. By regulating this market, the integrity of its users and material assets is protected, formalizing responsible gambling and generating controls that prevent connection to minors and identity theft, among other aspects.

2. Greater collection for the Treasury: Another reason to specify the regulation is to increase tax collection. The industry players have pointed out that the tax burden contemplated by the current project (40%) is the highest in the world, which directly affects the "channeling", that is, the passage of players and operators of an unregulated market. , to a regulated one. The higher the tax burden, the lower the channeling and the fewer players and operators go to the regulated market, thus, the objective of higher collection is lost and the lack of protection for users also increases. "The challenge is that the majority of operators and players prefer the regulated market, so the very high tax burden could cause the opposite result, which is negative from the user's point of view and for collection purposes," adds Carlos. Baeza, lawyer member of the International Master of Gaming Law (IGML) and representative in Chile of the online betting houses Betano, Betsson, Coolbet and Latamwin.

3. Minimum operating standards will be established: As there are no standards governing the activity, there is no kind of requirement in terms of quality, safety, customer service, certifications, etc. “Without a doubt, having a regulation will force all companies that operate in Chile to comply with certain requirements. Although there are many companies that maintain first-rate standards, because they are consolidated companies at the Latin American level -such as Latamwin- and globally, there are others that do not deal with this aspect”, explains Baeza.

4. Development of a new industry: Last but not least, the regulation will make the platform market an attractive alternative for the development of new companies and professionals in the field of technology and digital services. This provides new opportunities and opens the possibility of growth for startups focused on this area, for the consolidation of a sustainable and competitive industry.