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The World Lottery Association (WLA) has submitted an informative document on the current bill being discussed to govern online gaming in Chile. The main idea behind this organization is to work with Chilean authorities to develop an environment that is safe, transparent, and socially responsible.
In its submission, the WLA pointed out that for regulation to be effective, there is a need to channel gambling to authorized and licensed gaming operators, while at the same time preventing unauthorized persons from benefiting from unfair competition. This, according to the WLA, can be achieved by setting limits on the number of licenses to be issued, which should be proportional to the state’s supervisory and control capacity.
This, however, is part of a larger approach to regulation, whereby market expansion must be balanced with institutional oversight and control capacity to prevent any inefficiencies.
Consumer Protection and Responsible Gaming Standards
The World Lottery Association’s submission on consumer protection and responsible gaming standards is an integral part of its overall approach to regulation. The organization pointed out that there is a need to ban welcome bonuses and risk-free bets, which may be particularly appealing to minors and young adults.
By doing this, Chile can deter any form of aggressive marketing, which will boost consumer confidence.
Moreover, the WLA pointed out that any gaming operator that had been operating illegally should be subjected to an evaluation process before being allowed into the regulated market. This, according to the World Lottery Association, is to prevent the regulated environment from being an amnesty for any non-compliance that may have occurred before.
Protecting the Social Mission of Polla Chilena de Beneficencia
The association also emphasized the special role of its regular member, Polla Chilena de Beneficencia. In fact, the state lottery alone has redistributed around $69 million to the government and other beneficiary institutions in 2024.
The WLA has called for the protection of the social purpose of the state lottery, urging the government to ensure that the financial burden of the new regulatory measures does not compromise the social purpose of the state lottery.
The challenge of competition versus the preservation of government revenue streams is still a pressing issue.
Combating Illegality and Strengthening Transparency
To safeguard operational integrity, the WLA endorsed measures such as payment blocking and IP blocking for unauthorized websites. It also advocated for stronger transparency requirements regarding ownership structures, aiming to prevent money laundering and illicit financial flows.
Finally, the association recommended a balanced taxation model, one that reflects the social costs associated with online gambling while maintaining the economic sustainability of licensed operators in competition with the black market.
As Chile advances its legislative process, the WLA’s recommendations provide a comprehensive blueprint focused on supervision capacity, consumer protection, and long-term market stability.
Source: SBC Noticias
