Chile’s VAT Play for Offshore iGaming Just Worsened Its 4-Year Regulatory Gridlock

(AsiaGameHub) –   By: Elena Rostova

Chile has been stuck on formalizing its online gambling market for over four years. The latest administrative move from its tax authority blew open existing rifts overnight. Land-based casino operators, online platforms, and government agencies are now locked in public disputes over conflicting interpretations of the sector’s legal status.

Last week, Chile’s Internal Revenue Service (SII) released Resolution No. 69/2026. It requires foreign online gambling platforms serving local users to register under the digital services tax regime. Operators must pay VAT on local revenues and clear all past tax dues. The SII insists the measure only relates to tax compliance, not formal industry authorization. Finance Minister Jorge Quiroz backed the move, stating tax authorities are just fulfilling statutory duties. Land-based casino groups accuse the government of legitimizing unlicensed activity for extra tax revenue, while online betting platforms welcome the move as a step toward regulatory clarity. Previous regulatory efforts launched in 2022 were derailed by lawsuits from incumbent gaming stakeholders, and Supreme Court rulings have repeatedly confirmed online gambling lacks explicit legal standing under current law.

The current half-measure does nothing to resolve core legal ambiguity for operators. It also fails to address consumer protection gaps created by unregulated iGaming activity. Local industry groups across both land-based and online sectors are calling for full legislative intervention instead of piecemeal administrative actions. Chile will not resolve its iGaming policy disputes until it passes the formal comprehensive regulatory framework first proposed in 2022.

Author bio: Elena Rostova, public policy expert specializing in compliance assessments for governments and sovereign wealth funds.