Chile Enforces DNS Blocking for Unlicensed Gambling Sites via Court Ruling

The legal landscape for online gambling in Chile has taken a drastic turn. The Santiago Court of Appeals has officially established the mechanism by which Chilean telecommunications companies must block access to unauthorized gambling websites. This move marks a significant victory for the country's state-authorized lottery duopoly and follows through on a previous Supreme Court ruling. While legislation for a fully regulated online market in Chile continues to face delays, the judiciary is now resorting to tough technical measures to protect the domestic market from unlicensed foreign competition.

At the heart of the proceedings are Domain Name System (DNS) blockades, which must be implemented by the country's major internet service providers. The companies affected include prominent names such as Claro, Entel, GTD Manquehue, Movistar, WOM, and VTR. The court's decision stems from a lawsuit filed by Lotería de Concepción, which, along with Polla Chilena de Beneficencia, holds the monopoly on regulated public lotteries. The operators successfully argued that free access to unauthorized online platforms created conditions of unfair competition. Notably, this resolution comes just two months after Chile introduced a mechanism to tax offshore gambling operators.

Numbers and facts

The technical procedure was proposed by Chile’s Undersecretariat of Telecommunications (Subtel). The process is designed in multiple stages to minimize errors. First, the appellants or involved third parties must inform the gambling regulator, the Superintendencia de Casinos de Juego (SCJ), of domains, subdomains, or redirects they believe are linked to illegal platforms. The SCJ then has the task of validating this information within its purview. Only once it is confirmed that the domains actually correspond to betting or gambling platforms is the list sent to Subtel. The telecommunications companies are then expected to implement the blocking within the timeframe established by Subtel and provide proof of implementation to the court. This procedure can be updated successively to include new mirror sites or alternative domains.

„Blocking the websites is a necessary tool to achieve the central objective of the ruling.“ - Supreme Court of Chile panel

The procedural history is quite complex: in April 2025, the Court of Appeals initially rejected the lottery operators' action. However, the Supreme Court overturned that decision. In March 2026, the Court of Appeals briefly considered the ruling fulfilled, but the Supreme Court, through a writ of certiorari resolved in April, ordered the reopening of enforcement proceedings. This made it clear that selective blocks were insufficient and a permanent system had to be established.

Background

Chile has been struggling for years to regulate online gambling. While physical casinos and state lotteries are strictly controlled, numerous international providers operate in a legal gray area. The government is attempting to regain control through tax laws and now through court-ordered blockades. The goal is not only to protect state revenue but also to channel players toward supervised offerings. The involvement of the SCJ as a validating authority is intended to ensure that legitimate services are not accidentally blocked, which has often been a point of criticism regarding DNS blocks in the past.

Why it matters for German players

For players in Germany, this development is a familiar scenario but with different context. Since the Interstate Treaty on Gambling 2021 (GlüStV 2021) came into force, the Joint Gambling Authority of the States (GGL) has also relied on technical blocks against illegal providers. In Germany, however, there is a clear licensing system. Anyone playing at a casino with a GGL license is protected by strict rules: there is a cross-provider deposit limit of 1,000 euros per month, monitored via the LUGAS system. Furthermore, stakes for online slots are limited to 1 euro per spin. The DNS blocks in Chile show that regulatory authorities worldwide are choosing increasingly drastic means to dry up the black market. German players should therefore be very careful to only play with providers on the official white list to avoid legal issues and the loss of player protection rights.

What it means for GGL-licensed casinos

For legally operating casinos in Germany, the Chilean ruling is an important signal. It proves that the protection of licensed markets through network blocks is gaining international acceptance. GGL-licensed providers invest large sums in compliance and player protection. When illegal competitors can operate without these requirements and taxes, a massive competitive disadvantage arises. The consistent enforcement of blocks, as Chile is now practicing, strengthens the position of legal providers. It also shows that telecommunications providers worldwide are increasingly being held accountable for complying with gambling laws, which significantly increases the effectiveness of regulation.