Online Gaming in Chile is Debated Again
Online gambling in Chile is being debated again as lawyers go head to head over the real meaning of Chilean gaming laws. Debates have continued over the summer, first spurred by contentions between casino operator Dreams and online bookmakers about whether the latter should be allowed to buy advertising space. Now that this matter is resolved, the legislature turns its eyes to online gaming as a whole.
Lawyers are debating the legality of online gaming in Chile again. Mikhail Pavstyuk/Unsplash
Is online gambling legal in Chile?
Online gambling exists in Chile and is widespread, as it is in many Latin American countries, though there has not been an official law to regulate online gaming there. One was introduced in March 2022 but it has not fully gone through legislation yet, which means online gaming in Chile is in limbo.
After the recent fight over sports advertising between Dreams and sports betting agencies resulted in a ruling against bookmakers, online betting services are battling to continue operating. At the center of the struggle is a contentious debate over what Chilean gaming laws actually mean when it comes to online gaming.
Jorge Bofill is a lawyer for the firm Bofill Escobar Silva. Along with Matías Balmaceda of Balmaceda, Cox y Piña, and Carlos Baeza, Bofill defends several betting agencies: Betano, Betsson, Coolbet and LatamWin. Bofill has become central in the case as he recently penned a letter to argue against claims made by the Chilean Association of Gaming Casinos (ACCJ) Executive President, Cecilia Valdés Vial.
Valdés Vial made a somewhat controversial statement to local press by saying that, according to Chilean law, gambling is classified as a crime. Of course this statement is a bit misleading considering that some forms of gaming in Chile are legal. These are the Lottery of Concepción, horse racing, La Polla Chilena de Beneficencia, and casinos that fall under the management of the Superintendency of Gaming Casinos.
Valdés Vial seemed to be making a point about all gaming outside of these specifically legal verticals. She argued that with the criminal classification, online gaming is not at all in a gray area, and that it must also be considered illegal as it is not yet regulated. Furthermore, ACCJ argues that based on Law 19,995, online bookmakers are forbidden to operate in the realm of games of chance, whether online or offline.
Bofill’s letter of course refutes her claims. His argument is essentially that online gaming cannot be considered illegal since it is not specifically outlawed in any Chilean code of law. He supports his claim but explains that since 1833, Chile’s constitutions are clear that all “economic activities” are considered lawful unless expressly outlawed. That would also apply to online gaming.
He also debates her first point by saying that no Chilean laws have generally banned gaming, and zero have specified anything about online gambling. The fact that Chile started to work on an online gaming law this year further complicates the matter. Though the law has not been worked out yet, the initiative suggests that the view of online gaming among legislators is mostly favorable.
Bofill also agrees with regulation and all of the benefits it would bring to the state. Hopefully the law that has been started will be taken off of the shelf soon in Chile. The situation has unfortunately faced more pressure since casino operators have begun taking issue with online betting platforms, seeing them as tough competition. The fact that these platforms are not regulated and do not have to contribute tax of course worsens the issue. The sooner legislation can be agreed on, the better it seems for all involved.
