To successfully launch an online casino in Chile, it’s crucial to grasp the country’s current environment and cultural attitudes towards gambling.
For those interested in exploring the potential of starting an online casino in Chile, we’ve compiled key factors to consider.
iGaming Market
Chile’s iGaming market is one of the most vibrant in Latin America. Gambling has been part of Chilean culture since the first gambling laws were enacted in 1852. With a rich history of gambling activities, the market offers significant opportunities for new entrants.
Chile provides excellent conditions for developing an iGaming business. The country boasts a strong gambling culture and a robust economic situation. The Superintendencia de Casinos de Juego (SCJ) oversees all gambling activities, ensuring fair play and responsible gambling practices.
Although gambling has long been popular in Chile, the first physical casino in Viña del Mar didn’t open until 1930. It took over 60 years for the first law regulating gambling to be established in 1995. This law was updated in 2005 to regulate the 24 physical casinos in Chile.
Chile was among the first Latin American countries to embrace the online casino market. In 1994, Microgaming launched one of the first online casinos, The Gaming Club, which accepted Chilean players. This marked the beginning of digital gaming in Chile.
Today, over 900 operators offer services to Chilean players, generating approximately USD 150 million annually.
The continued growth of casino gaming is supported by Chile’s strong economic development and advanced digital infrastructure. With a population of 19.62 million, 88% of whom live in urban areas, and a GDP per capita of USD 15,094.83 – the second highest in South America – Chile’s market conditions are highly favorable.
Additionally, Chile’s digital landscape is more advanced than other Latin American countries, with 17.69 million people (90.2% of the population) having internet access. Nearly all Chileans own a mobile device with internet connectivity, enhancing their access to online gaming platforms.
Legality
The regulatory landscape for online gambling in Chile shares some similarities with Brazil but also has unique aspects.
Currently, gambling in Chile is legal and regulated under Law 19.1995, which covers casinos, lotteries, and physical betting venues. However, this law does not extend to the online gambling sector.
This has resulted in a legal gap where online gambling and betting are allowed for players, but the offshore operators providing these services remain unregulated and untaxed.
To address this regulatory void, Bill 035/2022 was introduced in March 2022. This bill aims to create a legal framework for regulating online casinos and sports betting platforms. Key points of the bill include:
- Updates to the ‘Superintendence of Casinos, Betting, and Gaming’ to ensure law enforcement.
- Licenses issued for five years, renewable, with a provision for a temporary six-month license.
- Licensed operators can offer casino and sports betting games, excluding lottery games.
Specific taxation measures proposed in the bill include:
- A 20% tax on gross revenue (GGR).
- Online bookmakers to pay the National Sports Federation 2% of their annual gross income.
- Companies to allocate at least 1% of their annual gross revenues towards promoting responsible gambling initiatives.
As of June 2023, Bill 035/2022 has been approved by the Economic Commission of the Chilean Chamber of Deputies, marking significant progress in the legislative process. The bill now awaits review and potential approval by the Senate. This development indicates a strong commitment from the government to regulate online gambling, provide a legal framework for operators, and ensure consumer protection within the industry.
Cryptocurrency
The enactment of the Fintech Law in February 2023 has greatly strengthened the role of cryptocurrencies within Chile’s economy, officially recognizing them as legitimate digital financial assets. This legislation has eased their usage and has led to cryptocurrencies becoming the third most popular investment option among Chileans by 2024.
Even before 2023, cryptocurrencies were gaining traction in online casinos and betting platforms. With the endorsement of the Chilean Central Bank, their popularity among players is expected to rise further.
Preferred Payment Methods
To ensure the success of an online casino or gambling site in any market, it’s crucial to offer the most popular and secure payment methods used in that country. While these methods may change over time and new ones may emerge, it’s always best to provide the most widely used options.
To cater to the preferences of Chilean players, the following payment methods should be available on your casino or gambling site:
For any bookmaker or online casino looking to enter the Chilean market, incorporating cryptocurrency payment and withdrawal options is essential. Operators have two main options: either implement a dedicated cryptocurrency payment processing software suitable for new market entrants or choose a comprehensive crypto casino solution that includes all necessary features for efficient cryptocurrency management.
- Mastercard
- Visa
- Neteller
- Skrill
- MuchBetter
- WebPay
- RedCompra
- Paysafecard
- AstroPay
- Bitcoin
- Ethereum
- Cardano
- Dogecoin
- Litecoin
Many of these efficient and secure payment methods are supported by software suppliers and payment service providers. By integrating these platforms, you can streamline your operations, reduce costs, and offer a reliable and secure service to your players.
Marketing
Currently, marketing strategies in Chile face minimal restrictions, similar to other Latin American countries. However, this may change with the proposed regulatory bill, which could impose strict conditions that might immediately halt or cancel any ongoing marketing activities by online casinos or gambling establishments if passed.
To avoid potential risks and ensure compliance, there are effective and safe marketing strategies available. One of the most popular methods is affiliate marketing, which has proven to be highly effective in the iGaming industry. Given its success in other markets, it is likely to be successful in Chile as well.
Our platform offers seamless integration, ensuring that affiliates and agents can easily manage their activities and maximize their earnings. With our diverse range of promotional tools and events, we aim to create a dynamic and rewarding experience for all participants.
Platform for Starting
A successful online casino relies on a secure, reliable, well-designed, optimized, and functional platform. Developing such a platform typically requires a significant investment and a team of skilled professionals. However, there are streamlined solutions available that can simplify this process and deliver excellent results.
One highly effective option in the international market is to partner with a provider of casino software that is both certified and backed by a company with a proven track record. Such platforms are regularly updated to enhance functionality and adaptability, making it easier to integrate advanced features like bonuses and jackpots.
BCraft Software will continue to monitor the regulatory situation in Chile and is ready to offer its software to the regulated market once it is established.