Authorities in Chile will not proceed with legal action to outlaw offshore betting operators in the South American nation.
After almost three years of legal wrangling, the situation is set to conclude without any formal declaration of illegality or prohibition.
Local media sources in Chile have reported developments from the Public Prosecutor’s Office that the action is set to lapse.
The update will disappoint domestic operators, who have been seeking to protect their position and market coverage, after they challenged the legitimacy of foreign bookmakers.
Several bodies in Chile, including industry stakeholders such as casino representatives, horse racing delegates, and the state-run lottery company, were at the forefront of efforts to block the growth of offshore operators entering the Chilean market.
They had cited issues with domestic ownership arrangements, foreign dominance, and unclear commercial commitments in Chile.
However, the campaign appears to have run its course with a hearing on 11 July at the Public Prosecutor’s Office expected to officially confirm the decision to shut down the case.
Need to make legislation fit for purpose
The Association of Online Betting Platforms (an umbrella organization representing various foreign operators in Chile, including Betano and Betsson) has expressed its satisfaction at the outcome.
It has interpreted the decision as vindication that their operations are compliant with the relevant legal frameworks in Chile, while accepting that more needs to be done.
The association confirmed its commitment to meet all legal obligations and to play its part in the legislative process to adapt the sector for the arrival of foreign entities.
This case has highlighted the need for reforms to reflect the modern digital gambling vista in Chile.
Although the presence of offshore operators has not been outlawed, the legal tussle up to this point has exposed the need to update and strengthen legislation so that it is fit for purpose.
The increasing proliferation of online betting and its popularity have evolved, despite no precise laws to provide effective oversight at the highest level.
Now, the Chilean government and lawmakers will be expected to respond effectively, to put the required measures in place.
Domestic operators are still unhappy with the situation, including a feeling that they are left disadvantaged with an uneven playing field, in the face of foreign-based competitors.
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