Chile announces mechanism to tax offshore gambling operators
The mechanism will allow online betting and casino operators without a physical presence in Chile to register and pay taxes.
Chile.- Online gambling operators serving Chilean players without a local presence will now be required to pay tax in the country. The Internal Revenue Service (SII) of Chile has issued a new resolution requiring foreign platforms for sports betting, online casinos and other digital games of chance to register and pay Value Added Tax (VAT) on transactions with Chilean users.
The measure, established through Exempt Resolution No. 69 of June 2, 2026, incorporates such operators into the simplified tax regime for digital services provided from abroad. This is the same mechanism used by other international companies that offer services in the country, such as streaming services, e-commerce portals and cloud computing providers.
According to the agency, the objective is to guarantee tax equity and ensure that all economic activities generating income in Chile contribute the corresponding taxes, regardless of where the companies providing those services are domiciled. The resolution establishes that VAT must be applied to all payments received by these platforms and also includes the regularisation of prior tax obligations.
In this regard, companies that have previously operated in the Chilean market may be required to pay taxes owed for up to 36 prior tax periods.
The SII (Chilean Internal Revenue Service) clarified that its role is to oversee compliance with tax obligations and not to determine whether an economic activity is legal or illegal, a definition that falls under the purview of other government agencies.
Industry reaction to Chile’s new online gambling tax position
Chile’s online gambling tax decision was welcomed by industry lobby group Chilean Association of Online Betting Platforms (aPAL), which stated that the measure corrects a situation that prevented companies from accessing the system available to other overseas digital providers. The industry group also argues that the resolution provides greater legal certainty and reinforces the need to move forward with the regulation of the sector.
However, the Chilean Association of Casinos and Gaming (ACCJ), which represents local land-based operators, is strongly opposed to the measure. It argues that the new mechanism could be interpreted as an indirect way of recognising businesses operating in a grey market, sending a signal that they can continue operating by regularising their tax status without assuming regulatory obligations equivalent to those required of licensed casinos.
The association noted that there are court rulings ordering the blocking of online gambling sites in Chile and that paying taxes does not change the legal status of the platforms.
“This measure is not simply an act of tax collection. In practice, it operates as a covert regularisation mechanism, by incorporating into the state system operators who currently carry out an activity that the Supreme Court has deemed illegal,” said Cecilia Valdés, executive president of the ACCJ.
“Paying taxes does not transform an illegal activity into a legal one,” the association added.
Chile’s online gambling regulation bill is currently at its second constitutional stage in the Senate after several years of legislative debate. The ACCJ questioned the timing of the tax decision as the bill continues to make slow progress. It argues that the SII’s measure could weaken the efforts made to build a regulatory framework that includes not only tax aspects, but also mechanisms for supervision and consumer protection, making for an unlevel playing field.
