Chile Declares Online Gambling Illegal Under Current Law

The Comptroller General of Chile has issued an official ruling clarifying that online gambling operations are illegal under existing legislation, reinforcing a complaint filed by a citizen and resolving long-standing questions about regulatory authority.

SCJ Lacks Authority Over Online Betting
The report confirms that the Superintendence of Casinos de Juego (SCJ) has no legal powers to supervise or regulate online betting platforms. Its mandate covers only land-based casinos and explicitly legislated gaming activities, leaving internet-based operators outside its jurisdiction. Nevertheless, the SCJ remains obligated to report unlawful activity to the courts and act against unauthorized platforms when required.

iGaming Classified as an Illicit Activity
The ruling explicitly categorizes online gambling as illicit under Chilean law. Any online betting or lottery-style game without formal authorization operates beyond statutory frameworks. This aligns with prior Chilean Supreme Court decisions, which have repeatedly prohibited unauthorized online gambling, ordering website blocks and cessation of promotional activity.

Consumer Risks and Judicial Support
Chilean courts have increasingly acted to curb unlicensed platforms, including instructing telecom providers to block access to illegal sites. The Comptroller emphasized the risks posed by unregulated operations, including lack of player protection, compromised financial integrity and absence of responsible gaming safeguards.

Regulatory Reform Remains Under Consideration
Despite the strict legal stance, Chile is progressing toward a regulated online gambling model. A bill introduced by the Executive Branch in March 2022 remains under Senate review, proposing licensing requirements, fiscal obligations and player protection measures to provide a safe and transparent market for operators.

Implications for Chile’s Gambling Sector
The ruling marks a pivotal moment for Chile’s iGaming landscape. While online platforms continue to operate in practice, they remain formally illegal. The decision reinforces judicial interpretations, clarifies regulatory limits and increases pressure on lawmakers to advance comprehensive online gambling regulation.

Chile now finds itself at a critical crossroads, balancing consumer protection, legal clarity and market innovation in an increasingly digital gambling environment.