Chilean Casinos Slam Tax Agency's Move Favoring Online Betting Sites

Chile's casino industry is strongly opposing a recent decision by the Internal Revenue Service (SII) that allows foreign online betting platforms to register and pay Value Added Tax (VAT) on their operations in the country. The Chilean Association of Casinos and Games argues that this resolution is not merely a tax collection measure but a "covert regularization mechanism" that integrates operators into the state system, despite their activities being deemed illegal by the Supreme Court. The association highlighted the confusing signal sent by the government, which recently opted not to expedite a bill aimed at regulating online betting. "Paying taxes does not transform an illegal activity into a legal one," stated Cecilia Valdés, the group's executive president. She questioned the role of public officials in simply collecting taxes on illicit activities rather than reporting them. The casino group, representing 16 legally regulated casinos, believes this decision undermines legitimate businesses and creates an uneven playing field. Conversely, the Chilean Association of Online Betting Platforms (aPAL), representing four online companies, praised the SII's decision. They view it as a way to "restore the path to declare and pay taxes in the country," providing greater legal certainty and strengthening fiscal collection for digital services provided in Chile. The group, which includes Betsson, JuegaEnLinea, Coolbet, and LatamWin, also stated that this decision underscores the importance of advancing the bill to regulate online betting platforms. They believe it facilitates tax compliance for foreign operators while emphasizing the need for comprehensive legislation.