Chile pushes its online gambling bill forward with a 19% margin tax
Chile's executive filed amendments to its online gambling bill with the Senate Economic Committee on 26 October. They would create five-year licences, tax the margin at 19% VAT plus a separate 3% levy, ban advertising and bonuses and set default deposit and time limits. The fee for operators already active without a licence is still disputed.
South Africa has no licensing route for online casinos at all, so Chile is a useful comparison rather than a direct influence. It shows the trade-offs a regulator faces when many unlicensed sites already have customers: whether to offer a transitional licence, how to tax online play against land-based casinos, and how hard to restrict advertising and bonuses. South African players still use offshore-licensed sites, so a clear line between "not licensed in South Africa" and "accepts South African players" matters on every comparison page.
What the Chilean government filed
Trade outlet iGaming Business reported on 29 October that the government of President José Antonio Kast sent a large set of amendments to the Senate Economic Committee on 26 October. The bill itself dates back to 2022 and has been delayed several times.
According to that report, the package would grant licences lasting five years. It would charge 19% VAT on the margin between stakes and winnings, plus a separate 3% levy. It would also ban advertising and promotional bonuses and apply default limits on deposits and playing time.
The fight over transitional licences
The most contested part concerns operators that already serve Chilean players without a licence. The draft would let them apply for a transitory licence while they go through technical certification and review. Proposals for the fee range from a monthly tariff of 73,000 UTM (Chile's inflation-linked tax unit) to a single or periodic payment of 3,000 UTM, put at roughly $219,000.
The lower figure has drawn criticism as a possible pardon for past unlicensed activity. The licensed casino trade body ACCJ says online and land-based operators face unequal tax burdens, and that the transitional rules could favour firms that avoided compliance.
Rival Senate proposals
Two senators proposed an outright ban on online gambling earlier this month. Another amendment would reserve the market for Chile's two existing lottery operators and penalise customers who repeatedly bet on illegal sites within 90 days. Chile also ordered internet providers to block 42 gambling URLs last month after court rulings, according to the same report.
What it means for South African players
Nothing changes for South African players from this bill. It is a Chilean proceeding, and no Chilean licence would cover play from South Africa. The point to take away is that regulators elsewhere are still arguing over how to treat unlicensed operators already in their markets, which is the same question South African lawmakers face.
- Check each casino review on this site for its licence and whether it accepts South African players.
- Do not assume an operator is regulated for South Africans because it holds a licence somewhere else.
What to watch next
Watch the Senate Economic Committee for a revised text, the final transitional fee, and whether the advertising and bonus ban survives industry objections. The bill has not been passed, and amendments may change before any vote.