How SII-Collected Taxes Transformed Online Gambling into a Legitimate Business

El Ciudadano

Original article: ¿Por qué los impuestos recaudados por el SII transformaron el juego online en un negocio legítimo?

The Internal Revenue Service (SII), fully backed by the Ministry of Finance, has shaken the legal and economic foundations of the country. The Exempt Resolution No. 69, issued on June 2, 2026, radically alters the established rules. Behind this seemingly simple bureaucratic directive—requiring foreign online betting platforms, virtual casinos, and betting houses to pay the so-called Digital VAT—lies a significant capitulation of the State before the gray market of online gambling, according to its critics.

Authorities and Finance Minister Jorge Quiroz have made every effort to contain the backlash. Their argument repeats like a mantra: «Tax collection is the SII’s responsibility to ensure fair competitive conditions; this does not imply legalization.» Similarly, the Minister of the Interior and Secretary General of the Government, Claudio Alvarado, has attempted to respond to criticisms by referring to the institutional framework: «The legalization of activities such as online gambling is exclusively up to a Republic law currently under discussion in Congress. The SII is simply an autonomous body acting within the powers granted by law.»

Officials assert that «charging taxes does not equate to legalizing an activity,» but many observers find it increasingly difficult to maintain that distinction. In a market economy, taxation is one of the primary indicators of institutional recognition. If an industry is registered with the State, declares earnings, and pays taxes regularly, it is inevitable to question how it can still be considered entirely illegal. Critics argue that insisting on both the illegality of online gambling while collecting revenue from that same activity poses a legal and political contradiction that is hard to justify.

A De Facto Amnesty for the Industry

Prior to the publication of this resolution, Chile’s legal framework surrounding gambling appeared clear and relatively stable. According to existing legislation, the only authorized operators were Polla Chilena de Beneficencia, Lotería de Concepción, Teletrak, and licensed land-based casinos. Any other form of gaming exploitation outside this framework was deemed illegal.

Senator Esteban Velásquez (FREVS) sternly reminded tax authorities of a critical precedent. «In September of last year, the Supreme Court upheld a protection claim and categorically stated that online gambling platforms operating without legal authorization engage in illicit activities. The ruling left no room for ambiguous interpretations and ordered internet service providers to block access to these sites,» the lawmaker noted.

However, for critics of the measure, the SII’s new resolution puts the previously established criteria set by the Supreme Court in a difficult position. They argue that the introduction of the Digital VAT effectively grants a kind of retroactive regularization to an industry whose legal status remained contentious. The argument is straightforward: foreign platforms operating without a presence in Chile can join the simplified system through form F129 and regularize their tax obligations for the last 36 tax periods, covering three years. For those questioning the decision, reconciling this integration into the tax system with the notion that these activities remain entirely illegal is a challenge. Thus, some sectors interpret the measure as a practical acknowledgment of the online gambling industry, regardless of its formal regulation still pending in Congress.

«The SII’s attempt to force companies operating outside the law to register and pay the Digital VAT constitutes an enormous legal absurdity and effectively functions as a form of covert regulation,» Velásquez asserts. Criticism has not only come from opposition sectors or advocates of stricter regulation but also from the center-right. Lawyer and UDI member Pablo Tolosa questioned the decision during an interview on Radioanálisis, bringing the debate to its logical conclusion: «The Supreme Court already issued a clear ruling on this matter. That the SII now intends to collect taxes from these platforms is simply outrageous.»

Another key element in this controversy is that, while the SII enjoys technical autonomy in exercising its functions, it is part of the State structure and operates within a framework defined by the Executive Power. As such, critics argue that the only authority with real political and administrative capacity to halt, amend, or reverse a resolution of this magnitude is the Ministry of Finance itself. However, critics accuse the ministry led by Jorge Quiroz of choosing a different strategy: prioritizing the fiscal revenue derived from online betting platforms while leveraging the SII’s institutional autonomy to avoid directly facing the political cost of a decision that continues to generate intense public controversy.

Covert Regularization and the Outrage of the Legal Industry

As expected, the measure provoked a strong reaction among traditional operators of the sector who have paid substantial taxes and levies to the State under a strict regulatory framework for years. The Chilean Association of Gaming Casinos openly accused the government of promoting a «covert legalization» of activities that had until now been considered illegal, motivated primarily by the desire to increase short-term fiscal revenue.

Cecilia Valdés, the president of the Chilean Association of Gaming Casinos, was particularly critical during an interview with Radio 13C:

«Paying taxes does not transform an illegal activity into a legal one. However, the message the market receives is very clear: these platforms can continue to operate while they regularize their tax situation. In practice, illegal businesses are being allowed to enter the system and obtain a RUT. The door is being opened without knowing who the true owners of these platforms are, who their ultimate beneficiaries are, or what the source of the funds they manage is.»

Valdés also questioned what she sees as a contradiction from the Executive. She recalled that during his last State of the Union address, the President committed to greater efforts to protect children and adolescents in digital environments. However, in Valdés’s view, the new tax policy sends an opposite signal by allowing foreign betting platforms to continue attracting users in Chile while they regularize their fiscal situation.

While the Senate has spent years debating the bill aimed at regulating online betting, critics argue that the Executive, through the SII director, Jorge Trujillo, has chosen to advance through administrative means before a clear legislative definition exists. This interpretation has gained traction, particularly since shortly before the issuance of Exempt Resolution No. 69, the government reduced the legislative urgency level assigned to the bill currently in the Senate.

Senator Diego Ibáñez has been equally categorical in his criticisms: «No one truly controls online betting platforms today. Their potential legalization must be defined in Congress, particularly in the Senate, and not through an administrative decision from an agency dependent on the Ministry of Finance. Regularizing an unregulated business administratively amounts to completely yielding to the lobbying efforts of large international betting houses. Therefore, we have decided to present this information to the Comptroller’s Office and summon the SII director, Jorge Trujillo, to provide explanations before the Senate.»

An Explosive Growth That Seems Impossible to Stop

While authorities, legislators, and regulators discuss legal definitions, Chileans continue to gamble. According to a report by Apuesta Legal Chile, the main online gambling platforms recorded 72.4 million visits during the first quarter of this year, an 8% increase compared to the same period last year. The numbers reflect the magnitude of a market that has experienced sustained growth and, for many analysts, already forms part of the Chilean digital economy.

Supporters argue that the SII’s Resolution No. 69 merely acknowledges a reality that already existed: the online gambling market has solidified in Chile and continues to expand despite the absence of definitive regulation. Therefore, they maintain that political discussions, investigations requested before the Comptroller’s Office, and criticisms from various sectors are unlikely to reverse a transformation that is already underway.

From the perspective of those endorsing this interpretation, in a market economy, taxes serve as a primary indicator of legitimacy. If a platform is registered in the SII system, declares income, and pays taxes on every transaction, any future attempt to block its activity could create a clear contradiction for the State itself. Proponents argue that it is difficult to justify the exclusion of operators contributing resources to the treasury through mechanisms such as form F129. In this context, they believe that the traditional model dominated by Polla Chilena and land-based casinos faces a historic challenge and that the expansion of online gambling has ushered in a new era for the industry, the impact of which would be difficult to reverse.