Chile Takes Legal Action Against Illegal Gambling Websites

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chile takes legal action against illegal gambling websites

Introduction

In a significant move to clamp down on unlicensed online gambling, the Chilean Supreme Court has ordered Internet service providers (ISPs) to block access to illegal sports betting websites. This marks a key step in the country’s efforts to tighten regulation of its online gambling market.

Background

Until now, Chile has allowed only a narrow set of operators to offer online gambling services — namely, entities such as Lotería de Concepción, Polla Chilena de Beneficencia, racetracks, and land‑based casinos with express permissions. A broader regulatory bill, introduced in 2022 and passed by the Chamber of Deputies in 2023, remains stuck in the Senate.

In this context, the Supreme Court’s decision reversed a lower‑court ruling, declaring that the refusal to block illegal gambling sites was “illegal and arbitrary.”

What the Ruling Entails

  • The ruling mandates that ISPs in Chile must block access to websites that facilitate unlicensed sports betting.
  • It sets a legal precedent: the decision was welcomed by the Chilean Casino & Gaming Association (ACCJ), which highlighted its importance for the industry.
  • Although full online casino regulation is yet to be passed, this step strengthens enforcement against grey/black‑market operators.

Why This Matters

  • It underscores that the Chilean authorities are willing to use technical enforcement tools — not just licensing laws — to protect the legal market and consumers.
  • For operators and affiliates, it signals that doing business in Chile without proper authorization involves not just regulatory risk but actual blocking/disruption of services.
  • For local players, this ruling may help clear out unfair competition from offshore, un‑licensed operators and strengthen the licensed sector.
  • It may also accelerate the broader regulation process: with enforcement rising, there is increased pressure for a clear, modern legal framework for online casinos and sports betting.

Implications for Stakeholders

  • Licensed operators should view this as a positive sign — the state is willing to act — and may consider stepping up investment in Chile, pending full regulation.
  • Affiliates and marketers targeting Chile should perform due diligence: using or promoting un‑licensed sites may increasingly lead to disruptions, blocked content, or reputational damage.
  • ISPs and tech providers in Chile now bear a legal duty to enforce blocking — this may lead to partnerships or demand for blocking technologies, domain‑filtering services, etc.
  • Consumers should take this as a reminder: participating on unlicensed sites may carry additional risk, from reduced consumer protections to increased odds of service blockage.

The Regulatory Outlook

While this court ruling is significant, it is not the end of the story. The broader regulatory bill remains pending in the Chilean Senate. Until it becomes law, online casino gaming remains in a grey zone: permitted only via the currently authorised actors mentioned above.

In short — enforcement is ramping up, but the legal framework remains incomplete. Operators, affiliates and consumers alike should watch Chile’s regulatory landscape closely in the next 12‑24 months.

Conclusion

The Chilean Supreme Court’s decision to compel ISPs to block illegal online sports‑betting websites is a strong signal that Chile is moving beyond just talking about regulation — it is taking concrete enforcement action. While the full online gambling regulatory framework remains in flux, the direction is clear: the grey zone is shrinking.

For operators, affiliates and tech providers in the iGaming industry this presents both risks and opportunities. Compliance, local licensing, and choosing the right partners will matter more than ever.

If you’d like tailored support, technology integration, regulatory advice or market‑entry planning, reach out to AIS Technolabs — our team can help you navigate these evolving landscapes. Feel free to contact us to explore how we can assist.

Disclaimer

This blog is intended for informational and educational purposes only. We do not promote or facilitate gambling activities in any country where it is considered illegal. Our content is focused solely on providing knowledge about legal and regulated markets. We only work with operators and platforms that are licensed and comply with the laws of jurisdictions where casino gaming is permitted. We do not operate or endorse any form of gambling in restricted regions. In countries where only skill-based games are allowed, our involvement is strictly limited to those games.

We believe gambling should be an entertaining and responsible activity. Our goal is to ensure that the platforms we review uphold the highest standards of fairness, transparency, and player safety.

FAQs

Ans.
The ruling specifically addresses illegal sports betting websites — the Supreme Court ordered ISPs to block access to sites offering unlicensed sports wagering. It does not yet provide a comprehensive online casino licensing regime.

Ans.
Not in the broad sense. Currently only certain authorised entities (such as Lotería de Concepción, Polla Chilena, racetracks, or express‑permitted casinos) may offer online gambling. The more expansive bill to regulate online casinos more fully is still pending in the Senate.

Ans.
According to the ruling the refusal to block was deemed “illegal and arbitrary,” suggesting ISPs may face liability or administrative penalties if they fail to implement the mandated blocking.

Ans.
Offshore, unlicensed operators now face increased disruption: their access can be blocked, their domains filtered, and their promotional activities curtailed. This raises the operational risk for those targeting Chile without a local licence or partnership.

Ans.
They should verify the licence status of operators, ensure they are promoting only legally‑authorised sites (or be prepared for domain blocking and reputational risk), and stay updated on the evolving legislative framework to avoid non‑compliance.

Ans.
Providers of jurisdictional compliance tools, domain‑blocking solutions, geofencing/geo‑filtering tech, affiliate‑monitoring software and other regulatory‑compliance services may find increased demand in Chile as enforcement tightens.