MercoPress. South Atlantic News Agency

Chile: Supreme Court rules online gambling illegal unless expressly authorized

The decision was reached by three votes to two

The Third Constitutional Chamber of Chile's Supreme Court upheld by three votes to two an appeal filed by the Concepción Lottery, ruling that various telecommunications companies —including Claro, Entel, GTD, Telefónica (Movistar), WOM, and VTR— must immediately block all illegal online betting websites accessible in the country.

The Court confirmed that all online gambling is illegal in Chile unless expressly authorized by law. The only entities with legal concessions for games of chance are the Concepción Lottery, Polla Chilena de Beneficencia, racetracks, and authorized casinos.

Regarding online gambling, “only Lotería, Polla, and Teletrak have legal authorization for certain games played in this format,” the Supreme Court pointed out. “Therefore, no one else can develop online games of chance, and there are no authorized online gaming platforms in Chile beyond those expressly authorized by law,” it added.

Failure or refusal by the telecom companies to block sites like Betano, Coolbet, JugaBet, Rojabet, and Betsson was deemed illegal and arbitrary, violating the Lottery's constitutional property rights over its exclusive legal concession.

The ruling also established that internet providers are prohibited from transmitting or facilitating illegal activities, thereby mandating the immediate blocking of the websites reported by the Concepción Lottery.

Chile's Superintendency of Casinos reports that over 900 illegal websites allow online betting, generating an estimated US$150 million annually nationwide.

A bill is currently in the Senate that seeks to regulate these gambling websites. If passed, it would generate a competitive market, protect players, ensure transparency, and contribute to tax collection.

In a case filed in 2022 by Polla Chilena against the company Mundo Pacífico, requesting the blocking and non-promotion of online gambling sites, that appeal was also upheld, and the blocking of more than 20 online gambling sites was ordered.