The Supreme Court of Chile, Third Chamber, ruled by a 3-2 vote to require Internet service providers to immediately block illegal sports betting websites within the country. This decision overturns a lower court's ruling from April and supports the protective appeal filed by the Concepción Lottery Company. The Chilean Casino and Gambling Association (ACCJ) welcomed this ruling, seeing it as a strong signal to illegal operators, and also called on Congress to advance the stalled online gambling regulation bill to establish a modern regulatory framework.
Background and Voting Results
The Third Chamber of the Supreme Court of Chile voted on Tuesday, passing a significant ruling by a 3-2 vote that requires Internet service providers to block access to illegal sports betting websites within the country. This ruling marks a stricter stance by the Chilean judicial system against illegal online gambling activities.
The decision was in response to a protective appeal filed by the Concepción Lottery Company, directly overturning a lower court's decision from April that refused to block illegal operating platforms, reflecting the Supreme Court's commitment to protecting the rights of legally operating companies.
Legal Basis and Ruling Content
The court pointed out in its ruling that refusing to block illegal gambling platforms is illegal, as only companies with legal authorization can provide online sports betting services in Chile. The court recognized that unauthorized websites infringe on the exclusive franchise rights of the lottery company, violating the constitutional principle of property protection.
According to current Chilean law, all gambling activities are illegal unless provided by the Concepción Lottery, Chilean Lottery Company, racetracks, or explicitly authorized casinos. This legal framework provides a solid foundation for the Supreme Court's ruling.
Implementation Requirements and Scope
The ruling requires Internet service providers like Claro Chile and Empresa Nacional de Telecomunicaciones to immediately block all illegal sites requested by the Concepción Lottery Company. The scope of enforcement covers all platforms and websites that offer gambling services without authorization.
The Supreme Court explicitly wrote in the ruling document: "It is hereby ordered that the defendants shall not broadcast or promote gambling games unless they provide legal authorization and administrative authorization." This statement emphasizes the importance of legal authorization.
Industry Reaction and Association Stance
The Chilean Casino and Gambling Association (ACCJ) welcomed the Supreme Court's ruling, considering this decision as a "strong signal" to illegal online gambling operators. The association believes the ruling confirms its long-standing assertion that online gambling operators operate outside the law, unregulated by the government.
ACCJ President Cecilia Valdés said on Thursday: "We are very grateful for the Supreme Court's clear ruling on online gambling platforms, ruling them illegal in Chile." The association believes this ruling establishes an important legal precedent.
Regulatory Status and Legal Challenges
Chile's regulation of online gambling is still in development. The online gambling regulation bill proposed in 2022 was passed by the House of Representatives the following year but is currently stalled in the Senate, with the legislative process at a standstill.
This legislative stagnation reflects Chile's challenge in balancing regulatory needs with market development. Under the current legal framework, only a few specific institutions are authorized to provide gambling services, including the Concepción Lottery, Chilean Lottery Company, racetracks, and licensed casinos.
Association Calls and Future Outlook
ACCJ calls on Congress to advance the online gambling regulation bill, hoping the Supreme Court's ruling marks an important step towards regulating the online gambling market in Chile in the right direction. The association emphasizes the need to establish a modern regulatory framework.
Valdés stated: "The next steps are clear: enforce the ruling, responsibly advance serious regulation, respect the principle of legality, and ensure fair competition. We cannot allow legislation to be passed under the pressure of illegal operators."
Consumer Protection and Market Regulation
ACCJ stresses that any future regulatory discussions should be consumer-centric, providing protections for those legally seeking entertainment. The association believes that Chile needs modern regulations, but these regulations must be based on compliance with the law, not under pressure from lawbreakers.
Valdés added: "Chile needs modern regulations, but these regulations must be based on compliance with the law, not from the pressure of lawbreakers. Today, the most important thing is that discussions should be consumer-centric, providing protections for those legally seeking entertainment."
Implementation Impact and Industry Expectations
The Supreme Court's ruling is expected to have a profound impact on the Chilean online gambling market. Illegal operators will face greater operational pressures, while legal operators will receive stronger market protection.
Industry observers believe that this ruling may accelerate the legislative process for the online gambling regulation bill, laying the foundation for a more complete and healthy gambling market environment in Chile. The ultimate goal is to achieve the dual objectives of market regulation and consumer protection.
