The Betting and Gaming Council of the United Kingdom and the Association of Online Betting Platforms of Chile have sealed a historic alliance that could mark a turning point in the regulation of online gambling in Latin America, establishing an unprecedented international collaboration model in the region.
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The partnership between BGC and aPAL: uniting British expertise with the Chilean market
The BGC, which represents approximately 90% of the UK’s regulated betting industry, signed a cooperation agreement with aPAL, an organization made up of international online betting operators that has been working since 2022 to promote modern gambling regulation in Chile.
The agreement, with an initial duration of one year, is part of the BGC’s international program that seeks to share best regulatory practices with emerging markets worldwide. This collaboration comes at a crucial time for Chile, where the new government is in a position to move forward with legislation that has been under debate for several years.
The current landscape of gambling in Chile: between legality and regulatory vacuum
Chile presents a paradoxical situation in its gambling market. It currently has an established sector of physical casinos, horse racing, and a lottery duopoly, but online betting operates in a legal limbo that authorities describe as “not prohibited but unregulated.”
The online market operates without formal oversight, leaving players without adequate consumer protections and the government without control over illegal activities. According to information from the Superintendency of Casinos and Games, more than 900 betting platforms currently operate outside the legal framework in Chilean territory.
The bill: a comprehensive regulatory framework
The legislative bill currently advancing in the Chilean Congress seeks to establish a semi-open online betting market, similar to the model implemented for physical casinos. The initiative, which was approved by the Chamber of Deputies in December 2023 and subsequently by the Senate in a general vote, contemplates multiple strategic objectives.
Among the most relevant measures are the creation of closed stock companies with exclusive purpose, establishment of minimum capital, rigorous supervision of shareholders and ultimate beneficiaries, and the implementation of mandatory responsible gambling policies. Operators will need to obtain certification from the Superintendency of Casinos, Betting, and Gambling before commencing operations.
Protection of minors and responsible gambling
The proposed legislation establishes strict protection rules for children and adolescents. Platforms will be prohibited from opening or maintaining accounts for minors, developing betting objects that encourage their participation, or directing advertising towards this population segment.
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The bill contemplates biometric identification, payment method blocking, and other technological tools to ensure that minors do not access the platforms. It also prohibits individuals with direct influence on sports results, such as players, coaches, and officials, from placing bets.
Financing of sports: a collateral benefit
An innovative provision of the bill establishes that platforms that operate sports betting objects will have to pay an annual levy of 2% of their gross income to the National Sports Institute. These resources will be distributed equally among sports federations, the Olympic Committee, and the Paralympic Committee.
Additionally, the taxation of Polla Chilena de Beneficencia will be modified for its sports forecasting line Xperto, increasing its contribution from 12% to 22% of gross income, thus equalizing its burden with that of online platforms.
The road to 2027: timelines and expectations
Following the recent elections, the new Chilean government is in a position to move forward with the legislation, which could allow for the introduction of a licensing regime starting in 2027. The law would come into effect on the first day of the month following its publication, but the regulations regarding license issuance would begin to apply six months after the regulations are enacted.
The bill contemplates a transitional period for operators who have not operated illegally in Chile during the 12 months prior to the law’s entry into force, who could apply for temporary licenses while they meet the full requirements for permanent licenses.
Conclusion: a milestone in online gambling regulation
The alliance between the UK’s BGC and Chile’s aPAL represents a significant milestone in the development of international regulatory frameworks for online gambling. With advanced legislative project, top-tier international technical support, and a government committed to regulation, Chile is positioned to become a regional benchmark in digital betting by 2027.
The success of this initiative will depend on the ability to balance consumer protection, tax collection, regulated market competitiveness, and effective eradication of illegal gambling. The coming months will be crucial in defining the final details of a legal framework that could permanently transform the online betting landscape in Latin America.
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