Launching an online casino in Chile requires a solid understanding of the country’s gambling landscape and the local attitudes towards it. This article outlines the key insights you need as an iGaming operator to navigate this exciting market smoothly.
For entrepreneurs interested in venturing into Chile’s online casino market, we’ve put together a comprehensive guide covering essential aspects to consider. This information will be invaluable as you embark on this journey.
Keep reading to learn about the crucial steps needed to open your online casino in Chile.
Chile’s iGaming Market
Chile is one of the most prosperous iGaming markets in Latin America. Gambling has deep roots in the country’s culture, dating back to the introduction of its first gambling laws in 1852. With a long history and thriving gambling culture, Chile offers numerous opportunities for new entrants into the iGaming sector.
The country’s strong gambling culture and stable economy provide favorable conditions for developing an iGaming business. Gambling in Chile is regulated by the Superintendencia de Casinos de Juego (SCJ), responsible for ensuring fair play and promoting responsible gambling.
Despite the popularity of gambling, Chile’s first physical casino, in Viña del Mar, only opened in 1930. It wasn’t until 1995 that a law was established to regulate the industry. This law was updated in 2005 to oversee the country’s 24 casinos.
Chile was an early adopter of online casinos, with the launch of The Gaming Club by Microgaming in 1994. This was the beginning of a strong relationship between Chilean players and online gaming. Today, around 900 operators serve Chilean customers, generating approximately USD 150 million annually.
Chile’s iGaming market benefits from the country’s growing economy 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, Chile offers a promising environment for online casinos.
Chile also boasts strong internet penetration, with 90.2% of the population (17.69 million people) having access to the internet. Nearly all Chileans own mobile devices, further enhancing access to online gaming platforms.
Legal Framework for Starting an Online Casino in Chile
The legal framework for gambling in Chile is similar to Brazil’s but has notable differences. Gambling is legal and regulated by Law 19.995, which covers casinos, lotteries, and physical betting venues. However, this law does not extend to online gambling, leaving offshore operators largely unregulated.
To address this gap, Bill 035/2022 was introduced in March 2022. This bill aims to establish regulations for online casinos and sports betting platforms. Key points of the bill include:
- Updates to the SCJ to enforce the law.
- Licenses will be issued for five years, with a renewable option.
- Licensed operators will be allowed to offer casino and sports betting games, excluding lotteries.
The bill outlines a tax structure where operators will pay 20% of gross gaming revenue (GGR). Additionally, 2% of bookmakers’ revenue will go to the National Sports Federation, and 1% will fund responsible gambling initiatives.
As of June 2023, the bill has been approved by the Economic Commission of the Chilean Chamber of Deputies and is awaiting review by the Senate. This progress signals the government’s intention to regulate online gambling and provide a legal framework for operators.
Obtaining Licenses
Securing a proper license is crucial for launching a successful online casino in Chile. A license builds player trust and ensures compliance with local laws. Currently, many international operators serving the Latin American market hold licenses from Curaçao and Kahnawake, two of the most prominent licensing bodies.
Preferred Payment Methods in Chile
For an online casino to thrive, it’s essential to offer the most popular and secure payment options. The recent rise in cryptocurrency usage, especially after the approval of the Fintech Law in February 2023, has made cryptocurrencies a key payment method in Chile’s online casinos.
With cryptocurrencies now recognized as valid financial assets, they have become the third most popular investment choice among Chileans. Any online casino looking to succeed in Chile should offer cryptocurrency payment options, using either specialized crypto payment processing software or a full-featured crypto casino solution.
Marketing Your Online Casino in Chile
Marketing strategies in Chile are currently unrestricted, but this may change once the proposed regulatory bill is enacted. To avoid risks, operators can rely on affiliate marketing, a proven method in iGaming that has worked well in other regions.
Software solutions allow operators to streamline affiliate management, offering flexible commissions and easy payment processing.
Casino Software Platform
The foundation of a successful online casino is a secure, efficient, and well-designed platform. While developing such a platform requires significant investment, partnering with a certified casino software provider can simplify the process.
A robust software platform is essential for integrating key features like bonuses and jackpots.
By following the guidelines and strategies discussed here, you’ll be well-prepared to launch a thriving iGaming business in Chile.