Chile makes progress on online gambling and betting legislation
The Chilean government is making progress on a bill that should make gambling operator Entain and others happy. The House of Representatives overwhelmingly passed a bill to regulate online gambling and gaming platforms on Tuesday, sending it to the Senate.
Key objectives include taking into account existing legal gambling opportunities in the country, promoting a competitive market, and ensuring the safety and health of players. It is also an attempt to increase market transparency and capture tax revenue currently flowing overseas.
The purpose of the program is to manage the licenses of online gambling operators, focusing on compliance with requirements for the prevention of crime, money laundering and the protection of users, especially minors. This is good news for operators who have recently been forced to suspend operations in the country.
Better operator supervision
To identify platform owners, the new rules will require disclosure of their ultimate beneficiaries, increasing transparency about where funds come from and where they go and preventing conflicts of interest. The project outlines a regulatory structure that balances incentivizing compliance with imposing severe penalties on illegal operators.
The Casino Gaming Supervisory Authority (SCJ, by its Spanish abbreviation) will be given additional powers to oversee the emerging industry. In addition, the Financial Markets Commission, the Internal Revenue Service and the Financial Analysis Unit will also play a greater role.
The SCJ, along with the ministries of finance and health, will be involved in formulating the National Responsible Online Gambling Policy. The purpose of this policy is to ensure responsible gambling behavior, prevent gambling-related problems and establish advertising and promotional guidelines for operators.
Special rules exist to protect young children and teenagers and prohibit them from opening or maintaining accounts without proper identification.Betting Providers must not advertise their participation or use advertising or promotions that may be targeted at them. Furthermore, the use of payment instruments on their behalf is completely prohibited.
Individuals have the ability to self-exclude and define game modes that trigger violation alerts. As part of their supervisory functions, regulators may also issue alerts on general risk patterns.
In addition, the legislation prohibits betting on people who influence the outcome, such as: B. Athletes, athletes and organizational leaders. It also involves manipulating the objects of bets to influence uncertainty. This means that betting on yellow or red cards in football and similar promotions is prohibited.
New Tax Plan
Chile’s Chamber of Deputies unanimously agreed that online games fall under the category of “digital entertainment services.” Online operators are therefore required to pay 20% VAT, just like brick-and-mortar operators.
However, additional tax requirements apply. The bill imposes a 2% annual tax on the gross gambling revenue of licensed platforms, with the revenue benefiting the National Sports Academy. Sports federations, Olympic and Paralympic committees are involved in the allocation of funds.
This is on top of a further increase in tax rates of 1%. The legislation adds to this push to cover the costs associated with creating and maintaining a responsible gambling program in Chile.
The House of Representatives quickly advanced the law, signaling the urgency with which Chile wants to move forward with the project. However, as the bill heads to the Senate, its progress may slow, especially due to the holidays.
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Source: www.casino.org
