JUE 25 DE ABRIL DE 2024 - 01:58hs.
Internal Revenue Service (SII) strong measure

Chile: Foreign online betting sites are declared "illegal", football is at risk

The Internal Revenue Service (SII) took action against foreign online betting houses by recognizing them as 'illegal activities'. The Chilean public body also left these companies out of the simplified VAT tax regime for foreign providers, so they are 'outside the legal framework.' Colo Colo and Universidad de Chile are some of the clubs sponsored by foreign betting sites.

Likewise, and in conjunction with the Superintendence of Casinos, they established that only the online services of Lottery of Concepción, Polla and Teletrak can operate in the country under current regulations.

A decision signed by the director of the SII himself, Hernán Frigolett, and which was materialized last March 14, in resolution no. 26.

It should be noted that automatic registration in said regime (created when the VAT on digital services came into force in 2020) is allowed only for providers from another country, but with the right for the entity to exclude some taxpayers under certain conditions.

In the midst of the discussion in Congress on how to regulate this type of activity, in conversation with Diario Financiero, the deputy director of Regulations of the SII, Simón Ramírez, pointed out that "it is very important that the State act jointly to ensure the Compliance with current legislation."

The response of the bookmakers

Faced with this news, Carlos Baeza, a lawyer representing Betsson, Coolbet, Betano, Latamwin and Estelarbet expressed: "We are concerned that they prevent us from paying this tax, wasting, without foundation, an income of resources so necessary today to respond to the demands of many Chilean men and women.”

Baeza clarified that "we are open to continue paying this digital VAT while the discussion of the bill that regulates this industry advances in Congress."

In turn, the reaction of the aforementioned bookmakers was not the best, assuring that the determination of the public entity showed "little seriousness" and a lack of foundations.

A hard blow for local football recognized by former national prosecutor Carlos Gajardo himself, who referred to this news through his social networks.

“The SII says it very clearly. Online gambling is illegal activity. It is important that they take note in Chilean football. They cannot be being financed by an illegal activity,” said the renowned lawyer.

It should be noted that both the Chilean division of honor (Campeonato Betsson) and the First B (Ascenso Betsson) are financed by this type of companies. In addition, clubs such as Colo Colo (Coolbet), Universidad de Chile (Betano), Ñublense and Everton (Betway), among others, are also sponsored by foreign betting houses.

Legislation related to the matter

The Government is currently working on a corrective tax project that will refer, among other issues, to the taxation of digital casinos and Internet betting houses.

In addition, Congress is debating a bill that seeks to regulate the operation of these platforms. At the legislative level, Ramírez pointed out that "it is very important that the State act jointly" so that current legislation is complied with.

However, the SII clarifies that the resolution also applies to taxpayers who do not necessarily have domicile or residence in Chile, but who provide services that do not comply with the regulations in the country.

Source: GMB