Chilean Casino and Gambling Association responds to Chile Supreme Court ruling

Abi Bray

6 October 2025 at 7:10am UTC-4

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The Chilean Casino and Gambling Association has responded to the Chilean Supreme Court’s recent ruling that internet service providers must block access to igaming sites operating in the country without authorization.

“We deeply appreciate the Supreme Court’s clear ruling on online gambling platforms, stating that they are illegal in Chile,” Cecelia Valdés, President of the Chilean Casino and Gambling Association, said in a statement. “This ruling provides certainty and confirms what we have maintained for years: that these platforms have operated outside the law, without regulation, without oversight, and without contributing to the country.”

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The court described that these platforms are “proscribed” by Chilean law, and as a result of the ruling, it has set a precedent that the normalization of illegal gambling cannot continue.

The Chielean Casino and Gambling Association expects all internet service providers to comply with the ruling and block those unauthorized sites.

“The next step is clear: enforce the ruling and move forward responsibly with serious regulations that respect the principle of legality and ensure fair competition,” Valdés added. “We cannot allow legislation to be passed under pressure from actors who have operated illegally.”

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The Chilean Casino and Gambling Association further confirmed its commitment to the gambling industry in ensuring it contributes to the country’s economic development and operates under clear rules to protect users.

Abi Bray brings strong researching skills to the forefront of all of her writing, whether it’s the newest slots, industry trends or the ever changing legislation across the U.S, Asia and Australia, she maintains a keen eye for detail and a passion for reporting.

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The Backstory

A turning point for Chile’s online betting market

Chile’s online wagering landscape shifted after the Supreme Court’s Third Constitutional Chamber ruled that internet gambling is illegal unless expressly authorized and ordered internet service providers to block access to unlicensed platforms. The decision, reached by a three-to-two vote on an injunction brought by Lotería de Concepción, effectively narrows the country’s lawful operators to state lotteries, authorized casinos and racetracks. The ruling clarifies a gray zone that had persisted as hundreds of offshore betting sites targeted Chilean customers without local approval. It also raises the stakes for a parallel legislative effort to regulate the sector and for enforcement that had struggled to keep pace with digital operators. The court’s move follows incremental restrictions in recent years, including a 2023 order that cut off online sportsbook sponsorships in top-flight football. For a market where Chile’s casino regulator estimated more than 900 online betting platforms generated about $150 million annually, the legal line is now clear. ISPs face a court-backed mandate to block unauthorized domains, signaling the end of permissive tolerance for unlicensed play.

Industry response was swift. The trade group representing land-based casinos welcomed the clarity and pressed for prompt compliance by telecom providers, casting the ruling as overdue recognition that many operators had been running outside the law and without consumer safeguards. The association framed the decision as a foundation for orderly competition and user protection if paired with serious regulation and consistent enforcement. That combination — firm policing coupled with a workable onshore regime — has become the central policy question as Chile’s politics converge on the digital betting economy.

Read more: Chile’s top court outlined the block-and-ban approach in its clarification of online gambling laws, while casino operators amplified the message in the trade group’s response to the ruling.

From legislative push to judicial muscle

The court’s order did not emerge in a vacuum. Lawmakers had already advanced a bill to regulate online gambling, seeking to set tax, licensing and responsible gaming rules for a market that grew faster than formal oversight. The Senate Finance Committee unanimously sent the measure to the full chamber after hearings with major international firms like Betsson and Betano and with local operators. Officials emphasized a tax architecture with an effective burden not exceeding 28 percent and no exemption from value-added tax, mirroring how Chile treats other online services. They also flagged biometric checks, payment curbs and platform blocking as tools to deter problem gambling and illegal operations.

That legislative process proceeded in tandem with enforcement debates. Lottery interests argued that unlicensed rivals were diluting legitimate offerings and skirting consumer protections. Telecoms were accused of dragging their feet on blocks without a definitive judicial directive. The Supreme Court’s order supplied that directive and, in practice, gives the executive and regulators a firmer footing to demand immediate ISP action while the Senate finalizes a framework for legal entrants.

Together, the tracks intersect: the court shuts the door on business-as-usual for offshore sites, while the bill sketches a door in for licensed operators who meet Chile’s standards. The political calculation now revolves around pace and prioritization — how fast blocks can be enforced, how penalties will be handled and how the licensing queue opens if and when the Senate passes the bill.

Read more: The Senate committee’s vote and policy contours are detailed in the committee’s approval of Chile’s online gambling bill.

Winners, losers and an uneven playing field

The immediate winners are the state-backed lottery operators and licensed casinos that now see stronger barriers against offshore competitors. The losers are unlicensed platforms that had leaned on regulatory ambiguity to build market share. Yet there is a middle group whose fate hinges on the Senate’s timeline: international brands with Chile-facing sites that have participated in hearings and floated compliance, but that must now navigate an abrupt cutoff and a potential transition into a licensed regime.

The casino trade group’s stance underscores this tension. It favors regulation that restores competitive balance and protects users, but warns against allowing formerly unlicensed platforms to shape the rules under time pressure. That posture echoes a broader debate over how to reconcile consumer demand for digital betting with the need to collect taxes, verify identities and police problem gambling. If the bill’s standards and the court’s order work in tandem, the compliance bar will be higher and the market smaller, at least initially. If enforcement outpaces licensing, users could turn to workarounds and gray channels, complicating the consumer-protection goals that drove the crackdown.

Read more: The industry’s framing of the court ruling appears in the association’s statement welcoming the decision.

Global crosscurrents in courts and capitols

Chile’s pivot fits a wider pattern of courts and lawmakers grappling with digital betting’s risks and reach. In India, a plea to ban all online sports betting apps reached the Supreme Court, which flagged public harms tied to compulsive use but also noted the challenge of stopping private conduct by statute alone. The bench notified the central government and referred the petition to top law officers, showing how national policy is still unsettled even as use has scaled into the hundreds of millions. The dialogue mirrors Chile’s twin-track approach — legal clarity plus administrative action — but with the added complexity of federal and state layers in India.

In the United States, a Michigan case illustrates how consumer rights in regulated online gambling remain contested. The state’s high court revived a player’s $3.1 million claim against BetMGM, signaling that statutory legalization can spawn new common-law remedies and that operator terms cannot automatically foreclose court review. The unanimous opinion sent the dispute back to trial court and could influence how operators document malfunctions and handle large wins. The ruling also drew widespread attention through local reporting. See coverage at Detroit News: Michigan woman scores high court win in $3.1M case against BetMGM.

Elsewhere, California is weighing a broad ban on promotional sweepstakes that industry groups say could rope in popular loyalty campaigns by household brands. The Social and Promotional Games Association warned that a late-session push without hearings risks chilling investment in digital entertainment. The dispute highlights how lines between gambling, sweepstakes and free-to-play models remain fluid in law and practice, and how definitions can sweep wider than intended.

Read more: India’s high court engagement appears in the plea to ban sports betting apps. The Michigan decision is summarized in the BetMGM case revival. California’s debate is detailed in the SPGA response to a sweepstakes ban.

What’s next for Chilean regulators and operators

The near-term question is execution. ISPs must implement blocks the court ordered, regulators must monitor compliance and legislators must reconcile enforcement with the pending bill’s rollout. If the Senate advances the measure promptly, the government could sequence licensing and controls to bring a portion of demand onshore under strict rules. If the bill stalls, the court’s ban-first stance will dominate and keep the market constrained. Either path will test coordination among ministries, the telecom sector and payment networks, especially around biometric ID and payment restrictions flagged during committee hearings.

For operators eyeing a future Chile license, the calculus is simple. Visibility into tax and compliance obligations has improved, but market access now depends on formal authorization. Engagement with consumer-protection standards will be nonnegotiable. For users, the experience may grow more fragmented as familiar sites disappear and local options narrow until new licenses are granted. The policy bet is that a smaller, supervised market will reduce harms and deliver tax revenue, even if offshore workarounds persist. Chile’s court has drawn the perimeter. Lawmakers now must decide how to fill it.