Chile Defines Requirements to Regulate Online Betting Providers

CHILE (June 17, 2023) — According to local media reports the Chilean government, through the Ministry of Finance, has published the notices on the draft law that will regulate the development of betting platforms and online gambling casinos in the South American country. Agência Latinapress reported the Secretary of State for Finance Heidi Berner presented the guidance to the House of Commons Economics Commission, which aims, among other things, to “promote responsible gambling and prevent problem gambling”, increase tax collection and both money laundering and terrorism financing through them prevent platforms. The draft law provides for similar requirements for operating companies as for casinos in order to obtain a license, including being a closed company based in Chile.

Such operating companies must – if the bill is passed – be incorporated and operate with a maximum of ten shareholders, who can demonstrate the source and adequacy of funds, and have a minimum capital of $159,000, in addition to the technical requirements set by the Casinos and Gaming Authority for the business. Online gambling platforms can only operate in Chile through addresses with a “.cl” domain and with systems and software that meet the requirements of international practices.

The Superintendent will – if the regulation is implemented – have the power to examine the commercial, tax, financial, administrative, civil and criminal background necessary to verify the requirements that the law applies to individuals and legal entities, both domestic as well as foreign, which are part of the property of the operating companies, their affiliated companies and their ultimate beneficiaries. In addition, betting without a balance is prohibited and if any entry or promotional bonuses are awarded, they must not be restricted and will be settled first when wagering.

“This market will only function with payment methods approved by the CMF, both for deposits and withdrawals,” the Treasury Department said of the details of the bill. Minors may not open or maintain accounts on these platforms and bets may not be directed at them. In addition, the advertisement or promotion must not contain any graphics, symbols, or characters, or use any media that entices you to play. According to the Secretary of State for Finance, it will remain a semi-open market subject to administrative approval by the Casinos and Gambling Regulatory Authority, which determines the eligible betting sites.

SOURCE: Agência Latinapress.