Chilean govt. submits new proposals to online gambling bill that could discourage regulation of the sector
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In June, the Chilean government proposed a series of indications to advance in the processing of the bill to regulate online gambling platforms, which was approved by the Economy Committee of the Chamber of Deputies on May 30.
A month later, new proposals were submitted to the committee in charge of the bill, among which is an increase in taxes on operators, adding VAT.
Thus, this tax -added to the Gaming Tax- would bring the tax burden to 38.2%, making Chile one of the countries with the highest taxes in the world for online platforms, which gaming stakeholders believe could lead to an increase in the illegal market.
Carlos Baeza, a representative before the Congress of the Latamwin, Betsson, Coolbet, and Betano platforms, considered that the measure will discourage the regulation of the sector, driving away companies operating in Chile from abroad.
"The changes made by the current government are so profound that one could speak of a new initiative, very different from the one installed by former President Sebastián Piñera just days before the end of his term. Chile automatically becomes a very unattractive country for prestigious online operators to come and set up in," he added.
Originally, the project stipulated a Gaming Tax of 20%, a 1% tax for responsible gaming, and a 2% collection for sports federations. This 23%, clarified the lawyer, is already considered high taxation, far from the range of 12% to 15% that would contribute to the growth of the industry.
In 2022, Baeza had anticipated in an interview with Yogonet the need for the approval of a regulatory framework for the landing of companies such as Betano, Betsson, Coolbet, and Latamwin in the Chilean market.
