Deputies from Chile's Unión Demócrata Independiente (UDI) party are drafting an amendment to the 2027 budget that would bar the tax authority SII from collecting taxes on online betting. Lawmakers Marco Antonio Sulantay and Eduardo Cretton argue that operators ruled illegal by the Supreme Court cannot be subject to taxation.
The conflict is straightforward. In September 2025 Chile's Supreme Court ruled that unlicensed bookmakers operate outside the law, and the Santiago Court of Appeal subsequently blocked 42 betting sites. Yet the tax authority continues to demand VAT from those same operators. The Comptroller General declined to rule on the matter after inquiries from deputies and the casino association.
UDI deputies stress they support regulation, but insist that tax collection must follow legal framework, not replace it. A licensing bill for online betting is in its second reading in the Senate, but no timeline has been set for passage.
Operators share the frustration. Sandra Kemp of iGaming Responsable told Diario Financiero that neither site blocking nor tax collection substitutes for proper regulation. Taxes might serve as a stopgap, she said, but without licensing, transaction oversight and minor protection the system fails.
The market continues to grow. Industry estimates put annual GGR at $650 million, and H2 Gambling Capital forecasts growth to $1.2 billion by 2028. The budget amendment adds uncertainty: if passed, the state forfeits tax revenue until a licensing regime launches. The outcome depends on other opposition parties and on when the Senate completes work on the betting bill.
