Chile expects to raise over USD 100 million annually through VAT
Chile's Internal Revenue Service (SII) announced that it expects to collect more than USD 100 million annually from VAT payments by foreign online gambling platforms, after issuing a resolution authorizing non-domiciled operators to formally register and pay taxes. The measure was published in the Official Gazette in mid-June and marks a strategic shift in Chilean tax policy towards the digital betting sector.
Resolution 69 of June 2, 2026, establishes a voluntary registration system for foreign providers of betting, gambling, and online casino services operating in Chilean territory. Although these platforms are technically illegal under Chilean gambling laws, the SII recognizes them as generators of taxes on digital services, thus enabling a channel for tax formalization without validating their underlying legality.
The strategy seeks to collect tax revenue from the volume of online betting that Chile faces as a market reality. Internal estimates suggest that more than 60% of betting consumption in Chile occurs on illegal platforms, moving tens of millions of dollars annually without contributing to the treasury. By allowing operators to register and pay VAT, the State seeks to capture a portion of this underground economy.
The initiative has generated intense debate in the Chilean Congress. Opposition legislators have criticized it as contradictory: illegal betting platforms cannot be allowed to pay taxes while simultaneously being declared illegal. However, the SII has defended the measure as a separation between tax policy and gambling regulation, arguing that tax collection is an independent fiscal competence.
For regulated operators in Chile and the region, this resolution underscores the complexity of Latin American legal frameworks and the growing sophistication of governments in capturing revenue from betting markets, even as an unresolved debate about underlying legality persists.
Tags: Chile taxation, online betting, LatAm fiscal policy