Chile: Telcos can't block betting sites intrusively
The Santiago Court of Appeals has issued a favorable ruling for the main telecommunications operators in Chile, exempting them from the obligation to implement complex technological systems for blocking unauthorized betting platforms. The ruling dismisses the request promoted by Lotería de Concepción, which sought to force companies such as Claro, Entel, GTD, Movistar, WOM, and VTR to use deep data inspection tools to curb the operation of gambling sites in the country. The court considered that such a requirement exceeds the current regulatory framework and would jeopardize fundamental principles of the digital ecosystem.
The legal dispute dates back to 2025, when Lotería de Concepción requested the implementation of deep packet inspection (DPI) and server name indication (SNI) technologies to neutralize not only the main domains but also the so-called mirror sites or duplicate pages. Although in September of that same year the Supreme Court had ordered the immediate blocking of twelve specific web addresses, the new ruling by the Court of Appeals clarifies that the operators have already complied with said sentence and that imposing more invasive standards lacks legal basis in current Chilean regulations.
The technical role of Subtel and net neutrality
A determining factor in this decision was the report issued in February 2026 by the Undersecretariat of Telecommunications (Subtel). The sectoral authority warned that there are no regulations that oblige internet service providers (ISPs) to adopt this type of technology. Subtel based its position on three technical and legal pillars:
- Net neutrality: Operators must guarantee free traffic without discriminating content, origin, or destination, unless there is a specific court order.
- Cybersecurity: The implementation of intrusive tools could create vulnerabilities in the country's critical infrastructure.
- Data protection: The use of DPI or SNI technologies implies a monitoring capacity over user activity that could conflict with current privacy rights.
From the Chile Telcos association, its executive president Alfie Ulloa explained that betting platforms usually constantly modify their URLs to evade blocks, which turns the pursuit into a cat-and-mouse game. According to Ulloa, telecommunications companies cannot act as permanent web traffic police without a regulatory framework that clearly defines their responsibilities towards third parties who could be affected by collateral blocks.
Perspectives of regulatory bodies and the legal sector
The ruling has generated mixed reactions among the various actors in the Chilean gaming industry. While the president of Polla Chilena de Beneficencia, Macarena Carvallo, urged more energetic action by the State, others see this ruling as a sign that the definitive solution is not technical, but legislative. Carlos Baeza, a lawyer representing several international sportsbooks, argues that the ruling affects operators but not platforms, which will continue to operate as long as there is no comprehensive law regulating their activity.
For his part, Manuel Zárate Campos, head of the legal division of the Superintendency of Gaming Casinos (SCJ), described the situation as a turning point. Zárate Campos stressed that the general prohibition of online gambling in Chile remains in force, with very specific exceptions such as Polla Chilena and Lotería de Concepción. For the SCJ, the resolution reinforces the urgency of approving the bill currently being processed, which would grant the Superintendency direct powers to order administrative blocks without the need to resort to lengthy judicial processes.
This legal scenario makes it clear that, although betting sites such as Betano, Betsson, or Coolbet remain under the scrutiny of Chilean justice, the operational burden of their digital elimination will not fall on telecommunications companies beyond the formally identified domains. The industry now eagerly awaits the development of the legislative debate that could change the rules of the game for all operators in the country.
Tags: Chile, online betting Chile, online casino blocking Chile, illegal casinos Chile