Chile moves forward with changes to regulation of online gambling platforms
Online gambling platforms including crypto casinos in Chile could soon be subjected to increased levels of taxation as a result of impending changes to the nation’s regulations.
Chile’s Economy Committee of the Chamber of Deputies approved a new bill concerning the sector on May 30 and last month saw the country submit a series of indications regarding it.
An increase in taxation levels for gambling companies such as crypto casinos is included in the bill, which would take the tax burden to 38.2%. This would make Chile one of the world’s most expensive countries for gambling firms to operate should the bill end up being passed into law.
A spokesperson for the Latamwin, Betsson, Coolbet and Betano platforms suggested there could be deregulation of the Chilean gambling industry as a result of the proposed changes. Initially, a new levy at around the 20% mark had been proposed to be set in the country.
“The changes made by the current government are so profound that one could speak of a new initiative, very different from the one installed by former President Sebastián Piñera just days before the end of his term. Chile automatically becomes a very unattractive country for prestigious online operators to come and set up in,” said the spokesperson.
Meanwhile, India is also upping the taxation of online gambling to 28%, the country’s Ministry of Finance has confirmed following a meeting of the country’s Goods and Services Tax Council.
During a press conference, an official said that the change should be seen as a clarification “to further amply clarify and leave nothing to doubt and put this debate to an end with the courts,” rather than an increase in overall taxation levels for the Indian online gambling market.
The debate in India mostly surrounds the difference between games of chance and those that involve a degree of skill. Finance minister Nirmala Sitharaman explained that it has now been decided that both games of skill and chance should be taxed at the same rate in India in future.
India’s gaming industry has exploded in recent years, with data released by Statista having shown it expanded from taking some $369 million in earnings in 2017 to $2.2 billion in 2022.
There have been suggestions that the high tax rate for gambling companies in India could lead to a growth in the country’s unregulated betting sector, which is already of a substantial size.