Chile’s Chamber of Deputies has approved an agreement expressing concern over the Internal Revenue Service’s (SII) decision to establish a mechanism allowing foreign online betting platforms to register and pay VAT in the country.
The agreement, promoted by UDI deputies Eduardo Cretton and Marco Antonio Sulantay, was approved by 133 votes to three, with five abstentions, according to local reports.
The vote comes as Chilean authorities move to implement a Supreme Court ruling concerning the legality of online betting platforms. In September 2025, the Supreme Court ordered action to block betting websites operating without the required authorisation. The Santiago Court of Appeals subsequently established a procedure for identifying and blocking unauthorised domains.
Deputies argued that the judicial process creates a conflict with the SII’s decision to facilitate tax compliance for foreign betting operators.
Resolution Exempt No. 69, issued in June, established a tax-compliance mechanism requiring qualifying foreign providers of online betting, casino and related digital services to register, declare and pay VAT on taxable transactions involving Chilean users. However, the measure does not grant operating authorisation or amount to a licensing regime.
The SII has said that its role is to enforce tax obligations and that determining whether an underlying economic activity is legal does not fall within its remit.
The Chamber agreement argued that allowing operators to formally register and pay tax could create the impression that the state is recognising or tolerating businesses that have not obtained legal authorisation to operate.
The deputies also pointed to the potential consequences of the current situation for consumer protection. In particular, the agreement raised concerns over access by minors, gambling-related harm and the availability of effective self-exclusion and other safeguards.
The dispute has already prompted criticism from other Chilean politicians and gambling-sector representatives.
The Asociación Chilena de Casinos has likewise argued that permitting offshore betting platforms to pay VAT sends an inappropriate signal about activities that the Supreme Court has deemed illegal.
The SII, however, has maintained that taxation does not amount to authorisation. Its position is that VAT obligations arise under tax legislation independently of whether the service provider has the necessary regulatory permission to conduct the underlying activity.
The dispute comes as Chile is considering an update to its legal framework for online gambling. A long-running bill before Congress would establish a licensing and regulatory regime for online betting, including taxation, operator requirements and measures aimed at protecting players.
The legislation remains under Senate consideration, with lawmakers and the government continuing to work on amendments to the proposal.
Chile’s Chamber of Deputies has approved an agreement expressing concern over the Internal Revenue Service’s (SII) decision to establish a mechanism allowing foreign online betting platforms to register and pay VAT in the country. The agreement, promoted by UDI deputies Eduardo Cretton and Marco Antonio Sulantay, was approved by 133 votes to three, with five