Chile: Bill regulating online gambling sets specific tax of 20% for iGaming operators


The Economy and Development Commission of the Chilean Chamber of Deputies continued with the debate of the bill that seeks to regulate the online sector and, in a recent session, approved the setting of a specific tax of 20% for iGaming operators in that country.

According to what was approved by the commission, the specific tax of 20% is established, though it will not be a substitute for the Value Added Tax (VAT), which will also be applied. In this way, equal treatment with land-based casinos is established. 

In addition, it was determined that on the 20% tax, an additional rate of 1% be established, which the operating companies may pay directly, or impute to it the disbursements made in the promotion of responsible gaming, an additional rate that is also incorporated in the Casino Law.

“Any difference in favor of the taxpayer will not be deductible, may not be imputed to subsequent fiscal years, and will not be subject to refund under any aspect”, according to the text. At the same time, the application of 1,000 Monthly Tax Units (UTM) for each license in force was approved.

Meanwhile, the exclusive fiscal benefit tax of an amount equivalent to 0.07 Monthly Tax Units (UTM), which would be due at the moment of opening an account in each online gambling platform with an operating license, is pending discussion. At this point, it will be debated whether the tax will be borne by the account holder.

Based on these tax guidelines, the Chilean Government expects to collect some CLP 88,857 million ($103.7 million) by the fifth year of the regulation.

Match-fixing

During this session, the parliamentary group also received the President of the Union of Professional Football Players (Sifup), Gamadiel García, and the Minister of Sports, Jaime Pizarro, to inform about the background of allegations of manipulation of soccer matches related to sports betting.

In this context, García gave details of the complaint made by the Cobreloa soccer player, David Escalante, who stated that several of his teammates were “lost in betting”, which had a direct impact on the outcome of matches.

At the time, the Chilean soccer players’ union leader made this complaint and informed that there is a platform enabled by the Sifup so that the players, by means of a code, can make complaints anonymously.

“Match-fixing does not only occur through bets but also through offers prior to the matches; these complaints have been sent by the union and placed at the disposal of the corresponding authorities”, he stated before the deputies.

Meanwhile, Minister Jaime Pizarro assured that these behaviors can seriously undermine competitiveness, which not only affects tournaments but also damages public faith. “We must be alert because this can mutate to other sports disciplines”, he cautioned.

After the interventions, the deputies of the commission expressed their concern about issues such as gambling addiction and corruption and stressed the need to make urgent progress in the legislation on betting shops, and from there to go deeper into other matters.