Chile Introduces 19% VAT Withholding for Unregistered Foreign Online Casinos

Chile has released the names of foreign online casinos that have registered with the country's tax authority after new Digital VAT rules came into force. The move is part of the government's ongoing effort to bring offshore gambling businesses under closer financial oversight while lawmakers continue discussing a national licensing framework.

The latest update follows a warning from the Chilean Internal Revenue Service (SII), which said operators that failed to register would face a different tax collection procedure starting in mid-July.

25 Operators Join the Digital VAT System

According to the SII, 25 foreign operators have now registered to declare and pay Chile's 19% Digital VAT themselves.

The registered companies include:

• 1xBet

• Betano

• Betway

• Novibet

• Betsson1001

• Coolbet

• SkillOnNet

• JugaBet

• EstelarBet

• Doradobet

• Latamwin

• Winchile

• Pokerenchile

• Juegaenlineachile

• Betsala

• Playsala

• Fortunazo

• State77

• Bet7k

• EpicBet

• Respin

• Baytree Interactive

• Bettingiscool

• 418services

However, several well-known brands have not joined the system. The current list includes:

• 1win

• Bet365

• Roobet

• PokerStars

• GGPoker

• LeoVegas

• Betcris

• TheLotter

• Stars

• ElectraWorks

What Happens to Casinos That Stay Outside the System?

Operators that complete the registration process will calculate, report and pay the 19% Digital VAT directly.

Those that remain outside the register face a different procedure. Instead of collecting the tax from the operator, Chile will require payment service providers to withhold the applicable VAT from qualifying customer transactions and transfer the money to the state every month.

The policy was introduced before the country established a regulated online casino market, making Chile one of the few jurisdictions where tax compliance is being enforced ahead of licensing.

What Could This Mean for Players?

For customers, the biggest concern is the possible impact on deposits made to casinos that have not registered.

If payment providers begin withholding the 19% Digital VAT during eligible transactions, players could end up paying more to fund their accounts or receive a lower credited amount, depending on how individual payment services apply the new rules.

The changes may also encourage more players to choose registered casinos to avoid additional costs or payment complications. At the same time, banks and payment processors are likely to increase scrutiny of transactions involving unregistered operators, which could result in slower processing times or fewer available payment options.

Licensing Debate Continues

Chile still does not have a dedicated licensing system for online casinos. A bill designed to regulate the industry has already cleared earlier legislative stages and is now awaiting further consideration in the Senate.

Representatives of the land-based casino sector argue that collecting taxes from offshore operators before introducing licences could create the impression that their activities are already officially authorised. Meanwhile, industry groups continue to call for a clear regulatory framework that would establish equal rules for all market participants while improving consumer protection.

Chile's latest move also reflects a broader regulatory trend. Authorities in several jurisdictions are paying closer attention to how payments are processed in the online casino sector. Earlier this month, Curaçao's Gaming Authority introduced new guidance on cryptocurrency transactions for licensed operators, highlighting the growing focus on payment transparency and regulatory oversight across the industry.