Strong reaction in Chile after the blocking of 42 online betting sites – CodigoPoker

The decision was announced on Wednesday and quickly generated a response in the online betting industry in Chile. After the Undersecretariat of Telecommunications (Subtel) ordered six Internet providers to block 42 betting websites via DNS, two associations representing iGaming operators strongly criticized the measure.

The Chilean Association of Online Betting Platforms (aPAL) and the Responsible iGaming Association agreed on a central point: they consider that the application of the block exceeded what was established by the courts and warned about its possible consequences for users and for the process of regulating online betting in the country.

The Subtel measure was made in compliance with rulings from the Supreme Court and the Santiago Court of Appeals. The agency notified six Internet providers with a list sent by the Superintendence of Gambling Casinos (SCJ) to proceed with blocking the sites via the DNS system.

However, aPAL questioned the scope of the decision and stated that the block “far exceeds” what was judicially established, as it includes domains and operators that, according to the association, were not part of the original protection appeal nor contemplated in the ruling.

The complaint about the Digital VAT

The association, which represents operators such as Coolbet, Betsson, Juegaenlinea, and Latamwin, also focused on a particular contradiction that, according to them, currently affects the Chilean market.

The block occurs, they pointed out, one month before at least 25 betting platforms make their first payment of the Digital VAT. For this reason, aPAL demanded that both the Executive and Legislative branches speed up the discussion of the bill aimed at regulating online betting platforms.

The association’s position is that the situation should be resolved within a comprehensive regulatory framework, rather than through blocks that, they argue, also affect operators who are trying to comply with tax and regulatory requirements.

The Responsible iGaming Association, made up of operators such as Betano, Betsala, Estelarbet, Juegalo, and Novibet, also questioned the implementation of the measure.

Read more Papo MC and Adrián Mateos return to the Triton Invitational: “The champions are back!” —

In their analysis, the original ruling identified 12 specific websites, while the list that ended up being applied through the Subtel protocol had grown to over 30 sites, with the addition of extra domains through a mechanism the association considers irregular.

The entity spoke of “contradictory signals” from the authorities. The argument is that, while the Government promotes and supports sector regulation and some operators registered to start paying the Digital VAT, at the same time their sites are being blocked.

The association warned that this situation ends up harming precisely the operators trying to work within a formal framework.

“This punishes responsible operators who actively seek to comply with regulations and leaves the field open to informal operators,” they said, warning that the latter would not prioritize responsible gaming nor the protection of minors and vulnerable groups.

The call for comprehensive regulation

Beyond questioning the block, both associations agreed that the fundamental solution for Chile is to comprehensively regulate the online betting market.

The Responsible iGaming Association emphasized that the block would not solve the problems facing the sector and argued that proper regulation would establish protection mechanisms for minors, guarantee the security of users’ funds, and safeguard personal data.

Thus, the industry’s reaction came just 24 hours after the Subtel decision was announced and again put the future of online betting in Chile at the center of the discussion: while authorities proceed with the blocks ordered after court rulings, operators demand that the country speed up the discussion of a law that establishes clear rules for the entire industry.

Read more ICM without memory: learning to think when each chip is worth differently — CodigoPoker