Chile Names 10 Unregistered Betting Sites in Tax Crackdown

Chile · Economy

Key Facts

—Forced VAT Withholding Payment processors for 10 named platforms, including Bet365 and PokerStars, will now be forced to withhold Chile’s 19% VAT, directly impacting operators’ revenue.

—Regulatory Milestone The enforcement action marks a turning point, pressuring offshore operators to join a formal tax system ahead of a full licensing regime.

—Consumer Risk Players on unregistered sites lack clear consumer protections, anti-money laundering safeguards, and responsible gaming tools that a regulated market would provide.

—Market Dominance An estimated 83% of online betting traffic in Chile goes to unauthorized operators, showing the scale of the offshore market now being targeted.

—Pending Legislation A fast-tracked bill proposes a 20% tax on gross gaming revenue plus a retroactive settlement, creating new costs for operators that have long served Chileans.

Chile’s Internal Revenue Service publicly identified 10 unregistered online betting platforms that will now face mandatory VAT withholding by local payment processors, accelerating a push to tax a booming offshore market.

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An Official List of 10 Non-Compliant Platforms

Through Exempt Resolution No. 94 on July 15, 2026, the Servicio de Impuestos Internos (SII) adjusted its official registry and named 10 foreign online betting platforms operating without VAT registration. The list includes global heavyweights Bet365, PokerStars, LeoVegas, and Roobet, alongside Stars, 1win.com, Electraworks, TheLotter, GGPoker, and Betcris.

These companies are classified as “plataformas no inscritas” (non-registered platforms). The SII activated a “change of taxpayer” mechanism (cambio de sujeto), meaning local payment processors and card issuers will be forced to withhold the 19% VAT directly on transactions, instead of the foreign operator declaring it.

How the VAT Withholding Mechanism Works

The enforcement action builds on Exempt Resolution No. 69, issued on June 2, 2026, which created a digital VAT registration system for foreign betting, casino, and gambling platforms with no domicile in Chile. The 19% VAT applies to the total bets placed by Chilean residents, less any prizes paid out.

Since no operators had registered by mid-July, the SII moved to forced collection. For registered platforms, compliance would also require declaring and paying retroactive VAT covering the last 36 tax periods. The SII maintains this process is purely a tax compliance matter, separate from licensing or legality questions handled by other state bodies.

Legal Gray Zone: Taxing an Illegal Activity

Chile’s current legal landscape is contradictory. The Supreme Court ruled on September 30, 2025, that virtually all online gambling is illegal unless run by one of three authorized entities: Polla Chilena de Beneficencia, Lotería de Concepción, or Teletrak. Courts have ordered ISPs to block unauthorized sites.

Despite this, the SII insists its duty is to collect taxes on taxable activities, even those in a legal gray zone. This stance has drawn scrutiny from the Comptroller’s Office, which demanded reports on applying tax rules to court-deemed illegal acts. The situation highlights a regulatory vacuum as lawmakers rush to establish formal rules.

The Coming Regulatory Framework for Investors

The government is fast-tracking Bill No. 14.838-03, which proposes a full licensing regime supervised by the Superintendence of Casinos and Games (SCJ). In May 2026, the executive branch granted the bill “suma urgencia” (highest legislative urgency) as it moves through a second Senate review.

For operators active in Chile before licensing, the bill proposes a one-off retrospective settlement equal to 31% of gross gaming revenue (GGR) over 36 months. The new system would also levy a 20% tax on GGR, a 19% VAT, a 1% responsible gambling contribution, and a 15% tax on player withdrawals. Analysts project a regulated market could generate around CLP 200 billion (approximately US$223 million) annually in tax revenue.

Why This Matters for Players and the Market

The SII crackdown directly affects payment flows on major platforms. By forcing local intermediaries to withhold taxes, playing on unregistered sites could become more cumbersome and costly. Furthermore, without regulation, consumers have no guaranteed standards for AML controls, self-exclusion registries, or underage gambling prevention.

With an estimated 83% of traffic going to unauthorized operators, according to a 2025 Apuesta Legal Chile study, the crackdown signals that the government is serious about capturing fiscal revenue. Industry group aPAL, representing brands like Betsson and Coolbet, has backed the push for legal certainty, betting that a regulated market will attract greater foreign investment and weaken unauthorized competitors.

Enforcement Escalation Beyond Taxes

Beyond taxation, authorities are turning to website blocking to pressure non-compliant operators. The Supreme Court’s order for ISPs to block unlicensed sites creates immediate business risks, including reduced brand visibility and added user friction.

The SII’s latest list builds on a history of naming non-registered digital companies. In June 2021, it identified 123 foreign digital platforms evading VAT, and a 2023 update listed gambling operators like Betsson and Betway alongside crypto firms. The current action, however, specifically targets the betting sector with a direct financial choke point: payment processing.

Frequently Asked Questions

Which online betting platforms did Chile’s SII publicly name?

The SII named 10 platforms: Bet365, Stars, 1win.com, Electraworks, TheLotter, PokerStars, GGPoker, Betcris, LeoVegas, and Roobet. These are foreign-based companies operating in Chile without VAT registration.

What is the “change of taxpayer” withholding mechanism?

It forces local payment processors and credit card issuers to automatically deduct the 19% VAT on transactions made with unregistered betting platforms. The tax is withheld at source and paid directly to Chilean authorities, bypassing the foreign operator.

Is online betting legal in Chile right now?

Virtually all online betting operates in a legal gray zone. Chile’s Supreme Court ruled in 2025 that online gambling platforms lack express legal authorization, making them illegal. Only Polla Chilena de Beneficencia, Lotería de Concepción, and Teletrak currently have legal authorization.

Sources: SII Resolution 69 and official explanatory note, La Tercera – Pulso on Resolution 94 and list of 10 non‑registered platforms, Chile at the Crossroads of Online Gambling (Soloazar), Chile’s Supreme Court Clarifies Online Gambling Laws (CDC Gaming), Chile Advances Online Betting Law (Mundovideo), SII Duty Is to Collect Taxes on Taxable Activities (CCLAC)