Chile has ordered the blocking of 42 foreign online gambling websites operating outside the country’s current regulatory framework. The measure was announced by the Undersecretariat of Telecommunications (Subtel) following rulings from the Supreme Court and Santiago Court of Appeals.
Subtel Orders DNS Blocking
Under the order, major telecommunications providers including Entel, Movistar, Claro, GTD, WOM and VTR have 48 hours to restrict access to the identified gambling platforms.
Subtel will use Domain Name System (DNS) blocking to prevent users from accessing the websites. In addition, this approach will limit the risk of disrupting legitimate online services. The domains were identified and submitted by Chile’s Superintendency of Casinos (SCJ). This government body is responsible for reviewing and validating platforms suspected of operating without authorization.
Subtel Undersecretary Romina Garrido said the measure follows judicial decisions. She stated it aims to ensure that telecommunications companies act quickly against online casino platforms operating outside the law.
Court Rulings Drive the Action
The blocking order follows legal action initiated by Lotería de Concepción against telecommunications companies over access to unauthorized online gambling platforms.
Chile’s Supreme Court established restrictions on the transmission and promotion of illegal gambling. Furthermore, the Santiago Court of Appeals confirmed that DNS blocking could be used to enforce the ruling.
The development comes as Chile continues to consider legislation that would establish a licensing framework for online gambling. The proposed bill is currently under consideration by the Senate. This bill could significantly change the regulatory environment for digital gambling operators.
Tax Registration Does Not Mean Authorization
The status of foreign gambling operators has also drawn attention following Exempt Resolution No. 69 from Chile’s Internal Revenue Service (SII). This resolution established tax obligations for foreign platforms registering to provide services to Chilean customers.
However, the SII has clarified that tax registration does not grant authorization to operate. Whether an online gambling platform can legally operate remains the responsibility of the relevant regulatory authorities.
So far, 25 platforms have registered with the SII, highlighting the distinction between tax compliance and gambling authorization.
Blocking Process Could Expand
The process begins with the identification of domains, subdomains and mirror sites associated with gambling platforms. The SCJ verifies and certifies unauthorized operators before Subtel sends the confirmed list to telecommunications providers.
Providers must complete the blocking within 48 hours and submit evidence of the action to the Santiago Court of Appeals, including the date and time each restriction was implemented.
The mechanism can also be extended to additional domains and mirror sites connected to previously identified platforms. This approach reinforces Chile’s efforts to curb unauthorized online gambling while lawmakers consider a broader licensing framework for the digital gambling market.
