Chile’s Senate is questioning the government’s approach to taxing foreign online betting platforms after the Internal Revenue Service introduced a 19% Digital VAT requirement for offshore operators.
Chile’s Internal Revenue Service (SII) has introduced tax requirements for foreign digital platforms that provide online betting services to consumers in the country. However, the move has renewed debate in the Chilean Senate over whether authorities can tax betting platforms that the country’s courts have deemed illegal.
Karim Bianchi Retamales, president of the Senate’s Public Security Commission, has formally asked the Ministry of Security to provide details on the government’s measures against foreign online betting companies.
The debate comes as Chile continues to operate without a specific regulatory framework for online betting. Meanwhile, the Supreme Court has ruled that foreign betting websites operating illegally cannot provide services in the country.
SII Introduces 19% Digital VAT for Foreign Platforms
The controversy follows Exempt Resolution No. 69 of 2026, which the SII released on June 2.
The resolution establishes tax compliance requirements for foreign digital platforms providing betting services to Chilean consumers. These requirements include registration, reporting and tax payment obligations.
Under the new rules, platforms covered by the resolution must pay Chile’s 19% Digital VAT.
However, the SII has made an important distinction: paying the tax does not authorise a platform to operate legally in Chile. The tax requirement also does not determine whether the underlying betting activity complies with Chilean gambling laws.
This distinction has nevertheless attracted criticism because the government could collect taxes from platforms that do not currently hold legal authorisation to provide online betting services in the country.
Senator Challenges Government’s Approach
Bianchi has criticised what he sees as a contradiction between the tax treatment of foreign betting platforms and the judicial position on their legality.
In a statement published on social media, the senator argued that collecting VAT from an activity that the Supreme Court considers unlawful does not amount to effective regulation.
He also raised concerns about financial crime and the potential use of foreign betting platforms for money laundering.
According to Bianchi, offshore betting platforms can move significant amounts of money while operating outside the country’s established regulatory framework. Consequently, he called for stronger government action against operators that continue to provide services without legal authorisation.
Money Laundering Concerns Add to Regulatory Debate
Bianchi also warned that the government’s approach could create inconsistencies in its broader efforts to combat organised crime.
From his perspective, taxing unauthorised betting platforms could create the perception of institutional acceptance, even if the tax rules do not formally legalise their operations.
“We cannot fight organized crime head-on in neighborhoods while simultaneously rolling out the financial red carpet on the internet for multinational companies that challenge our courts,” Bianchi said.
He called for regulations that focus on eliminating illegal platforms rather than adapting the legal framework around their existing operations.
As a result, the debate now extends beyond taxation. Lawmakers are also examining how Chile should address enforcement, financial crime and the legal status of offshore betting platforms.
Diego Schalper Calls for Review of SII Resolution
Bianchi is not the only Chilean lawmaker questioning the SII’s approach.
Earlier in August, Chilean lawmaker Diego Schalper asked the Office of the Comptroller General of the Republic (CGR) to review the legality of Exempt Resolution No. 69.
Schalper also questioned whether online betting platforms that lack legal authorisation to operate in Chile should be able to register and pay VAT through the country’s tax system.
His request adds another layer to the institutional debate over how Chile should handle offshore betting companies while lawmakers work towards a dedicated regulatory framework.
Chile Considers New Online Betting Framework
Meanwhile, the Chilean Senate is considering legislation that would establish a licensing framework for online gambling operators and introduce measures to combat illegal betting services.
The outcome could determine how Chile eventually aligns taxation, licensing and enforcement within a single regulatory system.
For foreign betting operators, the current situation creates significant uncertainty. While the SII’s tax rules establish financial obligations for certain offshore platforms, paying Digital VAT does not provide a licence to operate.
Therefore, Chile’s ongoing legislative process will be crucial in determining whether the country moves towards a clearer regulated online betting market or maintains a system in which taxation and operating legality remain separate issues.
