Chile’s Internal Revenue Service (SII) expects to collect more than $100 million annually through the application of Value Added Tax (VAT) on foreign online betting operators. These operators serve customers in the country.
The estimate was announced by SII Director Jorge Trujillo following the publication of Resolution No. 69 of 2026. This resolution establishes a registration system for offshore betting, online casino, and digital gaming operators without domicile or residence in Chile.
New Tax Collection Mechanism
The resolution requires foreign operators to register with Chilean tax authorities. Moreover, they must declare VAT on services provided to customers located in Chile.
Authorities said the measure is designed to ensure that overseas betting platforms contribute tax revenue from economic activity generated within the country. According to Trujillo, annual VAT collections from the sector are expected to exceed $100 million. This highlights the significant scale of Chile’s online betting market.
Taxation Does Not Equal Legalization
The SII emphasized that the new framework addresses tax obligations only. It does not grant legal authorization to online betting operators.
Officials stated that the agency’s role is limited to collecting taxes from economic activities already taking place in Chile. Meanwhile, decisions regarding licensing, regulation, and legality remain the responsibility of other government institutions.
Trujillo explained that operators generating revenue from Chilean customers should be subject to taxation. He argued this should happen regardless of the ongoing debate over the legal status of online betting.
Political Opposition Emerges
The measure has sparked criticism from some lawmakers and representatives of Chile’s land-based gaming sector.
Congressman Diego Schalper of the National Renewal Party questioned the logic of taxing an activity that authorities have repeatedly described as unauthorized.
“You cannot classify an activity as illegal and, at the same time, believe that it has the ability to pay taxes,” Schalper argued. He warned that the policy could create public confusion regarding the legitimacy of offshore betting operators.
Critics contend that imposing tax obligations may be perceived as indirect recognition of businesses. These businesses currently lack formal authorization to operate in Chile.
Ongoing Regulatory Uncertainty
The Superintendence of Gaming Casinos (SCJ) and Chile’s Supreme Court have previously stated that online betting operators are not authorized under current law.
Despite these positions, the SII maintains that taxation and legality are separate issues. Additionally, tax authorities argue that any economic activity generating revenue within Chile should be subject to taxation regardless of its regulatory status.
Questions surrounding the future regulation of online betting remain unresolved. Lawmakers continue to debate the creation of a comprehensive licensing framework for the sector.
Growing Focus on Online Betting
The introduction of the VAT registration system represents a significant step in Chile’s approach to the online betting industry. The measure is expected to generate substantial tax revenue while increasing oversight of foreign operators serving Chilean customers.
The policy has also intensified the broader debate over whether taxation implies legitimacy. This question is likely to remain central as Chile considers the future regulation of online betting.
