Chile's gaming sector is facing growing regulatory tensions after authorities shut down an illegal casino in the city of Chillán, while licensed operators intensified criticism of a new tax framework that allows foreign online betting platforms to register and pay digital VAT despite the country still lacking a comprehensive online gambling law.
The enforcement action took place on June 22, 2026, in Chillán, capital of the Ñuble Region, during a joint operation conducted by Municipal Security officials and Carabineros de Chile. Authorities dismantled an unauthorized gambling venue operating outside Chile's regulated gaming framework and arrested seven individuals. According to official information, three people were charged with operating an illegal gambling house, while four others were charged with participating in unlawful gaming activities, under Articles 277 and 278 of the Chilean Criminal Code.
Although authorities did not disclose the venue's commercial name, exact location, number of gaming machines, or amounts seized, the operation highlights the continued presence of unlicensed gambling establishments that generate no regulated tax revenue, operate outside AML controls, and provide none of the consumer protections required of licensed operators.
The closure comes amid a broader debate over taxation and regulatory consistency. On June 2, 2026, Chile's Internal Revenue Service (Servicio de Impuestos Internos – SII) issued Exempt Resolution No. 69, creating a mechanism that allows foreign operators without domicile or residency in Chile to register, declare, and pay digital VAT on online betting, casino, and gaming services provided to Chilean customers. The initiative is overseen by SII Director Jorge Trujillo and has generated strong criticism from the land-based gaming sector.
SII Director Jorge Trujillo
One of the most vocal critics has been Cecilia Valdés, Executive President of the Chilean Association of Casinos and Gaming (ACCJ), who described the measure as a "giant contradiction." According to Valdés, licensed casinos already operate under a framework that includes VAT, gaming-specific taxes, municipal licensing fees, AML and KYC requirements, and permanent oversight by the Superintendence of Gaming Casinos (SCJ), led by Vivien Villagrán Acuña.
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Cecilia Valdés
In contrast, she argues that allowing foreign online operators to pay taxes before the approval of a dedicated regulatory framework risks creating the perception that unlicensed activities are receiving indirect recognition from the state. The debate also involves the Ministry of Finance, headed by Jorge Quiroz Castro, and increasingly reflects a broader discussion about tax fairness, regulatory consistency, and consumer protection in one of Latin America's most closely watched gaming markets.
