Chile welcomes a key shake-up in the iGaming industry. The Office of the Comptroller General has officially issued an opinion, clearly stating that online gambling operations are illegal under current law, and for the first time clearly defining the jurisdictional boundaries of the Supreme Court on online gambling issues: it does not have the authority to regulate online gambling platforms. This statement not only ends a long-standing legal grey area but also reshapes the discussion on the regulation of online gambling in Chile.
The Office of the Comptroller General points out that the jurisdiction of the Supreme Court is strictly limited to physical casinos and activities covered by the "Chilean Casino Law", and online gambling does not fall within this framework, therefore, online gambling platforms are theoretically not regulated by the Supreme Court.
However, "lack of authorization" is not a reason for "inaction". The ruling also emphasizes that the Supreme Court still has an obligation to report illegal gambling activities and assist the judicial system in dealing with unauthorized operations that violate the law when necessary.
In this logic, the Comptroller's Office further categorizes online gambling as an "illegal activity". Unlicensed online casinos, sports betting, and lottery games are not protected by traditional gambling laws, nor have they ever been legally recognized by the Chilean legal system.
This judgment is consistent with the Supreme Court's previous precedents: online gambling lacking specific legal support should be "generally prohibited". In the past, the court has repeatedly ordered companies to stop promoting online gambling content and to block unlicensed platforms.
However, it is worth noting that Chile is not simply blocking the market. Although online gambling is officially defined as illegal at this stage, the government has already started to advance a future legalization framework. A bill regulating the iGaming industry is continuously debated in the Senate, initially proposed by the executive branch in 2022, covering licensing systems, tax obligations, player protection standards, and regulatory authority designs.
The government clearly realizes that online gambling has become an unavoidable growth industry, and "establishing clear rules" brings more transparency and safety than simply prohibiting it.
This ruling thus becomes a key turning point in the structure of the Chilean gambling industry:
On one hand, it strengthens the current legal ban on online gambling and clarifies regulatory boundaries;
On the other hand, it also further pushes legislators to quickly establish a modern regulatory framework, as online gambling still exists in the market despite the strict prohibition. This "market presence—legal absence—regulatory advancement" triangular tension is leading Chile towards a decisive window period: how to find a balance between innovation, consumer protection, and legal clarity will determine its future stability in the global iGaming economy.
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