Chile iGaming: Justice accepts lawsuit vs payment processors
The 4th Guarantee Court of Santiago declared admissible the legal action filed by Polla Chilena de Beneficencia. The measure directly targets payment service providers (PSPs) as "essential" pieces for the operation of unauthorized online gambling.
The legal landscape for online gambling in Chile has taken a decisive turn towards financial control. The 4th Guarantee Court of Santiago has declared admissible the complaint filed by Polla Chilena de Beneficencia against companies that process payments for gambling platforms.
With this resolution, the background information has been sent to the Public Prosecutor's Office to initiate a criminal investigation against the representatives of six key firms in the payment market: ALPS, Nuvei, Pronto Pago, Kushki, Pagadoor, and Khipu.
Alleged crimes: Money laundering and criminal association
The complaint led by the state-owned company chaired by Macarena Carvallo is forceful in denouncing three main criminal offenses:
- Money laundering: PSPs are accused of concealing or disguising the illicit origin of funds from illegal gambling.
- Criminal association: The complaint points to the existence of a sophisticated organization between operators, many in tax havens, and local processors.
- Administration of unauthorized gambling: Under Article 277 of the Penal Code, which punishes those who manage gambling houses without legal permission.
PSPs as "essential elements" of the business
The text of the criminal action emphasizes that payment processors are fundamental for these betting houses to operate, as they channel user deposits and prize payments through transfers and payment links. Without this financial network, the operability of international platforms on Chilean soil would be drastically limited.
Polla Chilena bases its position by citing rulings from the Supreme Court, which has ratified that online sports betting is prohibited in the current legal system, deeming debts from these games to have an "illicit object."
Market impact
This judicial decision puts under scrutiny not only casino operators but also the entire ecosystem of financial services that supports the industry in Chile. While Congress continues the debate on comprehensive regulation, justice seems determined to advance against the intermediaries that allow the circulation of capital in the unregulated market.
Tags: Chile, online betting Chile, illegal online casinos Chile, online casino payment methods