Emerging markets & culture
(CL$55,537,000.- US$70,311.-) (Annual payment). • Special Operating License: 100 monthly tax unit (CL$5,537,000.- US$7,311-). • Deposit in money, for an amount determined by the Superintendency for the payment of the expenses for the Platform’s authorization and certification. 5. Finally, the Bill establishes a USER Tax, as a substitute for the Income Tax, per Platform – rate: 15%. • Taxable Base: Gross Income (prizes minus bets). • Payment: Each withdrawal. Withholding Agent: The Operator with monthly payment. This is a complicated tax that presents many doubts regarding its practical application. 9. Guarantees The granting of Operating Licenses considers the following economic guarantees: 1. Surety or Guarantee issued in favor of the Superintendency, in the form and amount defined by the Superintendency, to guarantee the seriousness of the application. 2. Surety or Guarantee issued in the form and amount defined by the Regulations to guarantee the payment of prizes to the players. 10. Regulations included in the Bill 1. The Law (Bill). 2. Regulations (Ministry of Finance). 3. Technical Standards (Superintendency) (Art. 3 letter h). 4. Payment Means Requirements Regulation (Ministry of Finance) Art. 4e inc 22. 5. Resolution regulating the self-exclusion procedure (Superintendency) Art 5 final inc. 6. National Policy on Responsible Online Gambling (Ministry of Finance in consultation with the Superintendency
and Ministry of Health). Art 50.
11. Entry into force The Law will enter into force once the Regulations have been issued. Regulations must be issued within six months of publication. Within those six months, the first call for general licenses must be issued for 60 days. No other licensing process will be opened for two-and-a-half years from the date of publication. SUMMARY AND CONCLUSIONS The Bill will establish an open and competitive process for granting licenses which is different and unconnected with land base casino operation licenses. The bill does not set a pre-established number of licenses but an open market in which any company that meets the requirements can apply. It will be the market itself that will determine the number of operators and the size of the market, not the regulator or the law. Under the Bill, licensed operators will enjoy a competitive advantage over unregulated platforms, and a measure of protection from gray market activities. It should be enough to establish the necessary incentives for operators whilst protecting the rights of users. As such, there is likely to be a significant migration towards the regulated market. The Bill establishes a series of mechanisms that will give the Chilean authorities more tools to combat illegal gambling. These include the possibility to lock web domains and freeze payments, among other things and. It also levels the playing field between local and foreign operators and players will certainly follow that trend. The provision that licenses will only be granted to companies with Chilean shareholder companies means that investors that are interested in the Chilean market will be obliged to incorporate a Chilean company and pay the same rates of tax.
Carlos Baeza is the founder of Carlos Baeza y Cia. Abogados and Director of Latamwin Group. +56 2 2233 6816 cbaeza@cbaeza.cl
62 • IMGL Magazine • November 2022
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