Carlos Baeza works as an advisory lawyer of the online betting platforms Betano, Betsson, Coolbet and Latamwin. From there, he has led a strong defense of these operators against the current restrictions.
Are online betting houses legal and why?
In all activities carried out by people, which fall within the scope of private law, everything is permitted, unless expressly prohibited. In Chile there is no rule that prohibits online betting. There are only two regulations that include a prohibition on gambling: one in the Penal Code, in force since 1874 and which does not include online betting as prohibited and sanctioned conduct; and the other in the Gaming Casinos Law, where an express prohibition is established for in-person Casinos to operate online bets. There is no constitutional rule that prohibits games of chance as a whole, but rather a guarantee that the regulation of bets must be made by law and cannot be regulated by a ministerial decree or a municipal ordinance. There is also no prohibition on betting in civil matters, where a defect – an illicit object – is established in the debt associated with a betting contract. Debt is a monetary obligation agreed upon in a term. For this reason, online betting is a legal activity, but it needs to have modern and transparent regulation as soon as possible.
Is it enough to have oversight for them to operate?
Regulation allows for common standards and effective oversight. That is why it is urgent that they are effectively regulated by law. Online betting is a legal, but unregulated, activity. Chile has not established rules, requirements, or standards. That is why the draft Law for the Regulation of Online Betting Platforms that is being discussed today in Congress and that has been promoted by the Ministry of Finance and is currently being analyzed by the Economy Commission of the Chamber of Deputies is so important. While this bill is being processed and becomes law, online betting is a legal and licit activity, but not regulated.
Are you willing to pay taxes in Chile?
All international companies that do not have domicile or residence in Chile, such as Netflix, Spotify, Sony, Apple, are required to pay a single tax in the country, which is the digital VAT. This tax, which the platforms paid until December 2022, was blocked as of January 2023 by the Internal Revenue Service. The companies that I represent have pushed forward the bill that is being processed in Congress that regulates online betting platforms and that establishes the obligation to establish themselves in Chile and pay all taxes. We agree with that, totally agree, so much so that we have consistently supported the advancement of the regulation project.
Why is it not known who the owners are?
According to the Superintendency of Gaming Casinos, there are more than 900 platforms operating in Chile. In the case of Betsson, Betano, Coolbet and Latamwin are international corporations, public limited companies with multiple shareholders with known addresses, with subsidiaries in different countries around the world and with information available on the Internet. Regarding the remaining 896, I have no information. It is one more reason why it is urgent to regulate.
What are the protection measures for bettors?
In the case of these four companies, there are a series of user protection protocols in different spheres. Protection of personal data, rules and tools that prevent problematic gambling, limited access solely and exclusively to adults; technical certifications issued by world-class international laboratories that allow and assure users that they are developing a true bet. They are companies that comply with multiple international regulations and that ensure and support their users a world-class gaming experience. That is part of what is considered today in the discussion of the bill, so necessary for a new technological industry.
2023-09-17 02:03:21
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