Chile Questions Sports Sponsorships by Betting Companies Amid Regulatory Debate

The debate surrounding the legal status of online betting and its prominence in professional sports is intensifying in Chile. Sports Minister Francisco Riveros has publicly advocated for strict regulation to end the current chaos regarding sponsorship deals. As long as no clear national laws for online platforms exist, Riveros disapproves of the current partnerships between sports clubs and betting firms. The situation is critical as many clubs already receive millions from companies that technically operate without a Chilean license.

President José Antonio Kast's government faces a fundamental decision. Either the platforms will be completely banned, or a system will be created that forces foreign providers to comply with Chilean law. The protection of minors and the integrity of sports are at the center of political discussions. The minister emphasized that defining the role of athletes as advertising faces must be a key point of the upcoming legislation.

Numbers and facts

Authorities are already taking tough action, even as final legislation is pending. On September 21, the Subsecretariat of Telecommunications (Subtel) ordered the country's internet service providers to block 37 more domains linked to illegal gambling. This measure followed judicial rulings and a list approved by the Superintendency of Casinos (SCJ). Providers were given only 48 hours to technically implement these DNS blocks.

Much is at stake financially. Existing laws such as Law 19.995 of 2004 regulate land-based casinos but categorically exclude online gambling. Article 5 of this law makes it clear that operating permits must in no case include online games. Nevertheless, advertising contracts are flourishing, such as the agreement between the national football association ANFP and the provider Betsson, which has already been subject to legal review.

Background

The conflict is fueled by differing views within the ministries. While Sports Minister Riveros waits for more information, the Minister of Transport and Telecommunications, Louis De Grange, defends the current approach. He sees no contradiction in demanding taxes from firms while blocking their websites. However, De Grange admitted that technical blocking remains a cat-and-mouse game.

“It can only take these illegal betting companies a couple hours to set up another website.” - Louis De Grange, Minister of Transport and Telecommunications

Riveros, on the other hand, calls for a deeper examination of international examples. He wants to specify whether active professional athletes should be allowed to advertise for betting companies at all.

“For me, it has to be regulated, and that is where the definition lies.” - Francisco Riveros, Sports Minister of Chile

Why it matters for German players

The situation in Chile is reminiscent of the early phases of regulation in Europe, but for German players, the legal situation is much clearer thanks to the State Treaty on Gambling 2021 (GlüStV 2021). In Germany, players may only be active with providers listed on the official whitelist of the Joint Gambling Authority of the States (GGL). This regulation serves player protection and ensures that strict limits are maintained.

Anyone betting or playing in an online casino in Germany is subject to a cross-provider deposit limit of 1,000 euros per month, monitored via the LUGAS system. In addition, a stake limit of 1 euro per spin applies to virtual slot machines. Unlike the legally uncertain situation in Chile, the German system offers high legal certainty, even though sponsorship by betting providers in the Bundesliga is also frequently discussed critically. German users should avoid offers without a GGL license (often with MGA or Curacao licenses), as there is no legal protection by German authorities.

What it means for GGL-licensed casinos

For licensed German providers, the development in Chile is a confirmation of the strict regulatory course. Transparency in sponsorship and the avoidance of aggressive advertising featuring active athletes that particularly appeals to young people are global trends. GGL casinos must already ensure today that their marketing measures do not violate youth protection regulations. The Chilean debate shows that countries that leave the market unregulated for too long eventually have to resort to drastic measures like DNS blocking, which prevents planning security for legal market participants.