Key Moments
- The Comptroller General of Chile has officially defined online gambling as illegal according to existing national legislation.
- The SCJ has no legal authority to regulate or oversee online betting platforms under current laws.
- A Senate bill to regulate online betting remains in discussion, as the government seeks a comprehensive legal framework.
Comptroller General’s Ruling Structures the Regulatory Debate
The Comptroller General of Chile has issued an official opinion declaring online gambling unlawful in the country. As a result, the ruling clarifies the legal status of these activities. This determination began with a citizen’s formal complaint. In addition, it clarifies the current legal status of iGaming. The opinion also underscores that the Superintendence of Casinos (SCJ) possesses no jurisdiction or regulatory power over platforms operating in the digital gambling space within Chile.
SCJ’s Authority Limited to Land-Based Operations
The Comptroller’s report specifies that SCJ “lacks competence” when it comes to regulating online gaming operators. Its oversight extends strictly to land-based casinos and those activities directly referenced by Chile’s casino legislation. Since online gambling is not covered by this legislative structure, these platforms exist beyond SCJ’s purview.
Nonetheless, the SCJ is obliged to monitor the sector for illicit activities. The ruling highlights that the SCJ must report violations connected to unauthorized gambling and is expected to intervene through legal channels, acting independently or upon formal request, to oppose unsanctioned operations.
iGaming Unambiguously Classified as Illicit
A central component of the Comptroller’s announcement is the explicit designation of online gambling as an “illicit activity” under Chilean law. Operators providing betting and lottery-style games online without formal authorization are regarded as functioning outside established legal frameworks.
This stance aligns with previous Chilean Supreme Court interpretations, which have held that online lotteries and sports betting are generally prohibited except where dedicated regulation exists. The Court has previously required certain companies to refrain from marketing and broadcasting such gambling activities and mandated the immediate blocking of unlicensed gambling websites.
Ongoing Judicial Activity and Consumer Safeguards
The Comptroller’s perspective coincides with a trend of stricter legal action against unregulated gambling sites. Chilean courts have already instructed telecom service providers to block consumer access to selected online betting websites to ensure legal compliance and safeguard consumers.
The ruling further notes some of the main risks posed by unregulated online platforms, which include insufficient player protection, issues surrounding financial integrity, and the lack of guarantees for responsible gaming. Without oversight, consumers face the threat of fraudulent conduct, and the government is unable to ensure the integrity of gaming activities.
Path Forward: Regulatory Reform in Progress
Despite the continued official prohibition of online gambling, Chile is progressing toward a potential new regulatory regime. The Senate is currently reviewing a bill first introduced by the Executive Branch in March 2022 that seeks to establish a legal framework for online betting. The proposed legislation covers licensing, tax requirements, player protections, and formal oversight.
This legislative effort signals recognition by the government of the online gambling sector’s expansion, and the need for transparent, modern regulations that safeguard consumers and legitimate operators.
A Critical Juncture for Chile’s Gambling Sector
The Comptroller’s decision is a significant development for Chile’s gaming industry. By officially categorizing online gambling as illegal and reaffirming the SCJ’s lack of authority, the ruling cements the current legal view and raises the stakes for expedited regulatory reform.
Despite this clear legal line, many online betting operators remain active, with the final legal outcome dependent on the progress of the proposed Senate bill. This situation places Chile at an important crossroads, as the nation works to balance legal certainty, innovation, and player protection within a changing global gambling environment.
| Regulatory Body | Scope of Authority | Online Gambling Status |
|---|---|---|
| SCJ | Land-based casinos only | No authority |
| Comptroller General | Legal oversight | Declared illegal under current law |
- Author
Daniel Williams
