Chile orders net blackout of gambling websites

Chile orders net blackout of gambling websites

Summary

The Chilean Supreme Court has ordered major internet service providers (Claro, Entel, Telefónica, WOM and VTR) to block access to unlicenced online gambling sites after upholding an appeal from municipal operator Lotería Concepción. The Court found that net neutrality does not protect illegal content and said online gambling is only lawful when expressly licenced. The decision arrives amid stalled efforts in Parliament to finalise a long-awaited Gambling Bill that would regulate the sector, set taxes and create a new regulator.

Key Points

• The Supreme Court has instructed ISPs to block named foreign gambling domains, including Betano, Coolbet, JugaBet, Rojabet and Betsson.
• The ruling overturned a Court of Appeals decision and supported an appeal by municipal operator Lotería Concepción.
• The Court ruled net neutrality protects only lawful content; online gambling is legal only if expressly licenced.
• Chile currently has no completed online gambling framework; the Gambling Bill remains in the Senate after repeated delays since 2022.
• The proposed law would apply a 20% tax on gross gaming revenue plus VAT (bringing the total near 28%), raise earmarked contributions for responsible gambling (1%) and sport (2%), and create a strengthened regulator.
• Municipal operators (Lotería Concepción, Polla Chilena and Teletrak) demand compensation and protections, complicating passage of the Bill.
• The Supreme Court decision increases pressure on Parliament to finalise rules and resolve outstanding disputes over licensing, advertising and compensation.

Content summary

The Supreme Court order compels Chile’s biggest telecoms to actively block unlicenced gambling websites after a long-running legal campaign by local, municipal operators. The Court’s rationale emphasises that net neutrality does not extend to unlawful content and that gambling without an express licence is not permitted. The move follows years of legislative inertia: a Gambling Bill has been under discussion since 2022 but has repeatedly stalled over technical rules (IT authorisations, advertising) and political disputes, including calls for compensation for municipal incumbents.

The draft Bill aims to formalise an online market estimated at more than $150m annually, raise roughly 84bn pesos (circa $90m) in taxes, and introduce a 20% specific GGR tax plus VAT (around 28% total). It proposes a new Superintendency with extended powers and earmarked levies for responsible gambling and sport. But passing the law will require lawmakers to reconcile entrenched interests and legal challenges — a task the judiciary is now less willing to shoulder.

Context and Relevance

Why this matters: the ruling is a practical enforcement step that impacts market access immediately — foreign operators serving Chilean customers can be blocked at the ISP level even before a full regulatory regime is in place. That raises commercial, compliance and policy questions for operators, affiliates and payment providers working in Latin America.

Author style: Punchy — this isn’t just another court case. It escalates the conflict from a legislative debate to real-world internet access controls and puts the onus squarely on Chile’s Senate and Parliament to finish the job. If you work in iGaming, payments or regulatory counsel for LatAm markets, this is essential reading.

Why should I read this?

Short and blunt: if you operate, advise or invest in online gambling in Latin America, this story could change who can reach Chilean customers overnight. The Court has shown it will step in where politicians stall — meaning compliance strategy, market planning and legal risk just moved up the priority list. Read it so you’re not caught off-guard.

Source

Source: https://igamingexpert.com/features/chile-blackout-court/