Chile’s tax authority has taken a significant step toward bringing foreign online betting operators into the country’s tax framework. It has introduced new value-added tax (VAT) obligations for offshore gambling platforms serving Chilean customers.
The measure, introduced through Exempt Resolution 69 by the Internal Revenue Service (SII), requires foreign operators without domicile or residence in Chile to register, declare, and pay VAT on revenue generated from online betting, gambling, casino, and similar digital gaming services offered to Chilean users.
The decision has intensified an ongoing political debate over the legal status of offshore online gambling. Meanwhile, lawmakers continue to consider broader regulatory reforms for the sector.
New VAT Requirements for Offshore Operators
Under the resolution, foreign betting platforms will be incorporated into Chile’s simplified digital services VAT regime. This regime already applies to international providers of streaming and other digital services.
The tax will be calculated based on the total remuneration received from Chilean customers. In addition, operators that have been active in the market during the previous 36 tax periods must also settle outstanding VAT obligations through the designated digital filing system.
The registration framework officially opens the door for offshore operators to comply with Chilean tax requirements. This applies regardless of whether broader gambling legislation has been finalized.
Government Defends Tax Measure
The announcement prompted an immediate response from government officials.
Finance Minister Jorge Quiroz defended the decision, stating that the tax authority’s responsibility is to collect taxes on activities that fall within its legal scope. Furthermore, he rejected suggestions that the measure amounted to a form of gambling regulation or market authorization.
The Internal Revenue Service similarly emphasized that the resolution addresses only tax obligations. Questions regarding licensing, regulation, supervision, and the legality of online gambling activities remain under the jurisdiction of other government bodies.
Critics Warn of Implied Legitimization
Despite those assurances, the move has drawn criticism from several lawmakers who argue that requiring offshore operators to pay taxes could be interpreted as an implicit recognition of their activities.
The Senate’s Economic Affairs Committee has summoned SII Director Jorge Trujillo Puentes to explain the rationale behind the resolution.
Among the critics, Senator Gastón Saavedra of the Socialist Party argued that the measure effectively legitimizes illegal online betting operations. Deputy Ricardo Celis of the Party for Democracy questioned whether the tax authority had exceeded its mandate, while Broad Front representative Diego Ibáñez described the move as an administrative legalization of an unregulated industry.
Online Gambling Bill Gains Momentum
The tax developments come as Chile moves closer to implementing a formal regulatory framework for online gambling.
In May, the government granted its highest legislative urgency status to Bill 14838-03, which seeks to establish a comprehensive licensing and regulatory system for online betting operators. The proposal is currently undergoing its second constitutional review in the Senate.
Originally introduced in 2022 during the administration of former President Sebastián Piñera, the legislation has remained a priority under successive governments. It has recently been accelerated under President José Antonio Kast.
Proposed Framework Would Reshape Market
If approved, the legislation would require operators to obtain a general operating license and establish themselves in Chile as locally incorporated companies. These companies would need a dedicated gaming business purpose.
The proposal would also expand the authority of the country’s existing gaming regulator. It would do this by transforming the Superintendency of Gaming Casinos into the Superintendency of Casinos, Betting and Games of Chance.
The new regulator would be responsible for licensing operators, overseeing technical compliance, and enforcing sanctions. It would also maintain real-time remote access to betting platforms to monitor wagers, payments, and financial transactions.
Regulation Moves Closer
The VAT resolution highlights Chile’s ongoing efforts to bring greater oversight to the online gambling sector. Lawmakers continue debating comprehensive regulation.
Although the tax measure does not formally legalize offshore operators, it represents another step toward integrating the industry into Chile’s regulatory and fiscal framework. As legislative discussions progress, the country appears to be moving closer to establishing a fully regulated online gambling market.
