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Chile

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Chile is a yellow-level online gambling jurisdiction due to explicit laws banning play at online gambling sites other than the state-operated lottery.

Chile makes up more than half of the west coast of South America. It borders the Pacific Ocean to the west with Argentina and Bolivia to the east. It borders Peru to the north as well.

Overview

Online gambling is illegal in Chile due to explicit laws with no room for interpretation. However, the government has admitted that it has no practical way to enforce these laws, and there have been no cases of the government charging any players with online gambling. Aside from this law, they do offer limited government-backed lotteries online, and this has led to an initiative to get other forms of online gambling legalized and regulated as well.

Since 2012, there has been a moderate initiative by Chile's lottery division to start allowing online casinos and other types of gambling on the Internet. Lawmakers have even introduced bills that would allow this and establish a licensing process, but as of the time of this writing, none of these laws have passed. However, the future is hopeful.

Licensing

There is no licensing process for online gambling sites in Chile. With that having been said, there is precedent for companies to work with Chile's lottery division Polla Chilena. For one example, GTECH had a seven-year contract from 2008 through 2015 to offer different lottery-based services through the Internet and allows limited forms of sports betting. Current efforts to set up licensing for online casinos and other gambling sites are largely based on this precedent, and they aim to formalize the process.

While the future looks hopeful for the regulation of the online gambling licensing process in Chile, every bill that has been introduced to the legislature has included a provision for a very limited number of licenses to be given out. It's unclear if this will stifle competition and give players worse prospects than usual if the licensing process is eventually approved.

Player Protections

Players in Chile face one of the worst possible sets of conditions when it comes to player protections in most cases. Because non-lottery forms of online gambling are illegal, players have no recourse when playing with foreign operators. Along these lines, it would best serve players in this country to stick to companies that are very reputable.

For the government-backed lottery, players are able to file complaints if need be. These complaints are handled by Polla Chilena, the government division that handles their lottery and their relationship with companies like GTECH that provide lottery-based products.

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