Chile Requires VAT Registration for Offshore Gambling Platforms
Chile Introduces VAT Registration for Offshore Gambling Platforms – Tax Measure Intensifies Regulatory Stalemate
Key Takeaways
- Chile’s Internal Revenue Service (SII) issued Resolution No. 69/2026 requiring foreign online gambling platforms to register for VAT on digital services.
- The measure applies to offshore operators serving Chilean customers, even though online gambling lacks explicit legal authorization in Chile.
- The SII states the resolution concerns tax compliance only and does not constitute regulatory approval of online gambling.
- Industry associations and political stakeholders remain divided over whether the move legitimizes unregulated operators.
Tax Authority Establishes VAT Registration for Foreign Operators
Chile’s Internal Revenue Service, known as SII, has introduced a new registration mechanism for foreign online casino and betting platforms that provide services to consumers in Chile. The measure, set out in Resolution No. 69/2026, requires operators without domicile or residence in Chile to register under the country’s foreign digital services tax regime.
Under the resolution, affected platforms must apply value added tax to revenues generated from Chilean customers and settle outstanding VAT liabilities for previous tax periods. The SII stated that the objective is to ensure that operators pay taxes on digital services supplied in Chile.
The authority emphasized that the decision relates exclusively to tax compliance. According to the SII, the resolution does not constitute legal authorization or regulatory approval for online gambling activities. The agency stated that although these platforms are not authorized, they continue to operate and advertise openly in Chile, and therefore remain subject to VAT obligations.
Political and Industry Dispute Over Legal Status
The announcement has reignited debate over the legal standing of online gambling in Chile. The country has not established explicit legislation that authorizes and regulates online betting and casino operations.
Cecilia Valdés, President of the Chilean Association of Gaming Casinos, criticized the resolution. She argued that betting platforms have advertised for years across television, social media, and print, creating public perception that their operations are legal. In her view, the SII’s action risks deepening confusion regarding the industry’s legal status.
Valdés also stated that prioritizing tax collection over consumer protection may increase risks for players and licensed land based businesses. Her comments reflect concerns among established casino stakeholders that the tax measure could indirectly validate operators that lack formal authorization.
Finance Minister Jorge Quiroz defended the SII’s action. He stated that the tax authority is fulfilling its statutory obligations and does not need to comment on whether online gambling activities are legal or illegal. This position underlines a separation between fiscal enforcement and regulatory approval.
Regulatory Efforts Stalled Since 2022
Chile’s efforts to introduce a comprehensive regulatory framework for online gambling have been ongoing since 2022. An initial legislative proposal was introduced under the presidency of Gabriel Boric. The draft aimed to license operators, define tax obligations, and introduce responsible gambling safeguards.
However, progress stalled following legal challenges from incumbent gaming stakeholders. Polla Chilena de Beneficencia and Teletrak filed lawsuits that slowed the legislative process and sought to protect existing privileges.
At the same time, Chile’s Superintendency of Casinos, known as SCJ, maintained that online gambling lacked explicit legal recognition under current legislation. Chile’s Supreme Court reinforced this interpretation in subsequent rulings. The court ordered actions against offshore operators and instructed authorities to pursue measures against illegal gambling services.
Despite these developments, online platforms have continued to serve Chilean customers. Resolution 69/2026 reflects the government’s attempt to address tax obligations in the absence of finalized gambling legislation.
Support for Legislative Reform Continues
While disagreement persists, several stakeholders view the tax measure as evidence that authorities recognize the economic reality of online gambling activity.
The Chilean Association of Online Betting Platforms, known as APAL, welcomed the SII resolution. The association stated that the measure restores a pathway for operators to declare and pay taxes in Chile and provides greater certainty for the sector. APAL also reiterated the need to advance the legislative bill regulating online betting.
The National Federation of Casino Unions, Fenasicajh, similarly called for comprehensive reform. The organization stated that administrative measures alone are insufficient and that Chile requires modern and definitive legislation to resolve the status of online gambling.
President José Antonio Kast has signaled support for establishing a regulated online gambling framework. Courts, regulators, and industry bodies have increasingly called for direct legislative intervention to clarify licensing, taxation, and consumer protection rules.
Implications for Operators and Users
For offshore operators, the resolution introduces a clear tax compliance requirement if they continue to target Chilean consumers. Registration under the foreign digital services tax regime and the application of VAT now form part of their operational obligations in Chile.
For users, the measure does not change the underlying legal ambiguity of online gambling in the country. The SII has explicitly stated that tax registration does not equate to regulatory authorization. As a result, questions around licensing, consumer safeguards, and enforcement remain unresolved.
The current situation places Chile in a transitional phase. Tax authorities are enforcing fiscal rules on digital services, while lawmakers have yet to finalize a comprehensive regulatory framework for online gambling.
Our Assessment
Resolution No. 69/2026 introduces a formal VAT registration and payment mechanism for foreign online gambling platforms serving Chilean customers. The SII has clarified that the measure concerns tax compliance and does not provide legal authorization for online gambling operations.
The decision highlights an ongoing legislative stalemate that began in 2022, with repeated calls from regulators, industry associations, and political figures for a comprehensive regulatory framework. Until new legislation is enacted, online gambling in Chile remains subject to tax enforcement without explicit legal recognition or licensing rules.
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