Chile’s campaign against offshore gambling websites is facing a familiar internet problem: sites blocked by court order can quickly return under new web addresses. At the same time, the government is under growing pressure to move beyond reactive blocking and adopt a formal regulatory system for online betting.
Subtel acknowledges the limits of blocking
Chile’s dispute over online gambling has entered a more complicated stage. The Supreme Court has called for unlicensed betting websites to be blocked, internet providers have been instructed to comply, and the telecommunications authority Subtel has signaled that the process is far from simple.
Reports indicate that operators were able to bypass the first restrictions simply by changing domains. In practice, this means enforcement is often aimed at specific web addresses rather than the gambling businesses themselves. For users, a site may disappear from one URL only to reappear almost immediately at another.
Romina Garrido, Chile’s Undersecretary of Telecommunications, told lawmakers that Subtel is not a direct party to the legal proceedings, which limits its role mainly to technical coordination. The agency has considered stronger tools, including deep packet inspection and keyword-based blocking, but those measures raise concerns about cost, complexity, and civil liberties.
Courts are demanding stricter enforcement
Judicial pressure has continued to build. In September 2025, Chile’s Supreme Court upheld an appeal filed by Lotería de Concepción and ordered internet service providers to block sports betting platforms operating without legal authorization. The court made clear that only entities authorized under Chilean law may offer sports betting services.
That ruling did not end the issue. In April 2026, the Supreme Court overturned a lower court decision that had treated the initial blocking order as satisfied, despite the fact that many betting sites remained accessible through mirror domains. The matter was returned for further action aimed at ensuring more effective compliance.
The central problem is straightforward: blocking one domain is relatively easy, but keeping determined offshore operators offline is much harder. For consumers, this creates uncertainty. One version of a site may be unavailable while another remains active, leaving players with little clarity about who is responsible if payments are delayed or disputes arise.
Congress still has a regulatory bill on the table
A more durable solution may come through legislation rather than repeated blocking orders. Bill 14,838-03, which would establish rules for online betting platforms, was introduced to Congress on March 7, 2022. It remains under legislative review and was again given urgency status in May 2026.
The proposal would create a licensing framework for online operators, broaden the authority of the gambling regulator, and place digital betting under tax, advertising, and consumer-protection rules. Industry reporting suggests the bill would include:
- a 20% tax on gross gaming revenue,
- value-added tax obligations,
- a 1% contribution for responsible gambling measures,
- stronger powers to act against unlicensed operators and payment channels.
For players, regulation would likely offer clearer safeguards than the current environment. A licensed system would not eliminate all risks, but it could provide better complaint procedures, more reliable identity checks, and stronger oversight of operator conduct.
The new government inherits a difficult policy choice
President José Antonio Kast, who took office on March 11, 2026, entered government with a wider austerity agenda and limited room to avoid political negotiation in Congress. Reports indicate that his administration quickly introduced major spending cuts, adding pressure to identify new revenue sources.
That makes online gambling both attractive and sensitive as a policy issue. Legalization could generate tax income, but it would also force difficult decisions about licensing, enforcement against offshore operators already active in the market, and the treatment of established local entities such as Polla Chilena and Lotería de Concepción.
Chile is therefore caught between two imperfect paths. One is to continue a court-driven blocking strategy that operators can often evade. The other is to build a regulated market, knowing that any licensing model will produce political winners and losers. From a consumer perspective, regulation at least offers a clearer set of rules. Blocking alone mostly produces disruption, mirror sites, and ongoing uncertainty.
