How to Open an Online Casino in Argentina
View Details
For those keen to explore the possibilities of launching an online casino in Chile, we have curated a guide detailing the key factors you should consider. This information will be invaluable as you begin your journey in this promising market.
Continue reading to discover essential strategies for how to open your online casino in Chile.
iGaming Market in Chile
Chile’s iGaming market stands out as one of Latin America’s most thriving sectors. The tradition of gambling is woven into the fabric of Chilean culture, dating back to the first laws on gambling from 1852. With a history enriched by decades of gambling activities, the market presents significant opportunities for new entrants.
Chile has excellent conditions for developing an iGaming business. On the one hand, it has a strong culture of gambling and betting. On the other, the country’s economic situation and development serve as its main strengths. All gambling activities in Chile are overseen by the Superintendencia de Casinos de Juego (Superintendence of Casino Games) or SCJ, the regulatory body responsible for ensuring fair play and responsible gambling practices.
Although gambling has always been popular in Chile, the first physical casino, located in in Viña del Mar, wasn’t opened until 1930. It then took more than 60 years for the first law regulating the activity to be created in 1995. Ten years later, the law was updated to regulate the 24 physical casinos existing in Chile.
Chile was one of the first Latin American countries to open up to the online casino market. In 1994 the company Microgaming created one of the first online casinos called The Gaming Club, which admitted Chilean players. From then on, the history between digital gaming and Chile began.
Today, it’s estimated that more than 900 operators offer their services to Chilean players, generating around USD 150m annually.
The continued growth and evolution of casino gaming are supported by the country’s robust economic development and a strong digital infrastructure. With a population of 19.62 million, of which 88% live in urban areas, and a GDP per capita of USD 15,094.83 – the second highest in South America – Chile’s market conditions are exceptionally favourable.
Additionally, Chile’s digital landscape is more advanced compared to other Latin American countries, with 17.69 million people – or 90.2% of the population – having access to the Internet. Nearly all Chileans own a mobile device with internet connectivity, enhancing their accessibility to online gaming platforms.
Legal Situation for Starting an Online Casino in Chile
The regulatory environment for online gambling in Chile shows similarities to that of Brazil, but with some distinct differences
Currently, gambling in Chile is legal and regulated by Law 19.1995, which governs casinos, lotteries, and physical betting establishments. However, this does not apply to the online gambling sector.
This has created a legal vacuum where online gambling and betting is permitted for players, but the offshore operators serving them remain unregulated and untaxed.
In response to this regulatory gap, Bill 035/2022 was introduced in March 2022, aiming to establish a legal framework for regulating online casinos and sports betting platforms. Some of the most critical points included in this bill include:
- Updates relating to ‘Superintendence of Casinos, Betting, and Gaming’ to ensure law enforcement.
- Licences issued for five years, renewable, with a provision for a temporary six-month licence.
- Licensed operators would be allowed to offer casino and sports betting games, with the exclusion of lottery games.
The following measures would apply specifically to taxation:
- The tax will be 20% of gross revenue (GGR).
- Online bookmakers will pay the National Sports Federation 2% of their annual gross income.
- Companies will allocate at least 1% of their annual gross revenues towards promoting responsible gambling initatives.
As of June 2023, Bill 035/2022 has been approved by the Economic Commission of the Chilean Chamber of Deputies, marking a significant step forward in the legislative process. The bill now awaits review and potential approval by the Senate. This progress signals a strong commitment from the government to regulate online gambling, provide a legal framework for operators, and ensure consumer protection within the industry.
Licences to Start an Online Casino in Chile
Securing a licence is a fundamental step towards launching an online casino in Chile. It not only ensures compliance with the law but also builds trust with players, providing them with a secure and protected gaming environment.
Of the online casino operators currently operating with international licences, the most prominent for the Latin American market are those from Curaçao and Kahnawake.
Most Popular Payment Methods in Chile
For an online casino or gambling house to succeed in any market, it’s essential to offer the most popular and secure payment methods used in that country. While these methods may evolve and new ones appear, providing the most popular payment options is always advisable.
In order to satisfy the preferences of Chilean players, the methods that should be offered on the casino or gambling site are:
Many of these efficient and secure payment methods are supported by software suppliers and payment service providers. By choosing these platforms, you can streamline your operations, reduce costs, and provide a reliable and secure service to your players.
Cryptocurrency Support in Online Casino Payments
The recent approval of the Fintech Law in February 2023 has significantly bolstered the position of cryptocurrencies in the Chilean economy, recognising them as valid digital financial assets. This regulation has facilitated their use and has contributed to cryptocurrencies becoming the third favourite investment choice among Chileans in 2024.
Before 2023, cryptocurrencies were already gaining popularity in online casinos and betting sites. Now, with the backing of the Chilean Central Bank, their popularity among players will continue to grow.
Any bookmaker or online casino aiming to establish a presence in the Chilean market should consider integrating cryptocurrency payment and withdrawal options. As an operator, you have two primary choices: adopt a dedicated cryptocurrency payment processing software suitable for new market entrants, or opt for a full-featured crypto casino solution, which comes equipped with all the essential features needed to handle cryptocurrencies efficiently.
How to Market an Online Casino in Chile?
Marketing strategies in Chile currently face few restrictions, similar to other Latin American countries. However, this situation is only temporary, as the proposed regulatory bill could introduce strict conditions that would immediately censor or cancel any ongoing marketing actions by online casinos or gambling houses, if passed.
To mitigate any possible risks and ensure compliance, there are marketing strategies that allow you to reach thousands of players effectively and safely. One of the most used options is affiliate marketing. This strategy has proven to be one of the most efficient in iGaming. Based on its success in other markets, it would surely work in Chile as well.
These kinds of innovative affiliate management solutions, such as Affillka by SOFTSWISS, serve as invaluable tools for driving player traffic. With Affilka software, you can effortlessly configure flexible commissions and streamline payments to affiliates, greatly improving your affiliate management efficiency.
Software Platform Needed to Start an Online Casino in Chile
The cornerstone of any successful online casino is a secure, reliable, well-designed, optimised, and well-functioning platform. Developing such a platform typically involves a significant investment and a team of skilled professionals. However, there are streamlined solutions available that can simplify this process and deliver excellent results.
A highly effective option available on the international market is to partner with a provider of casino software that is both certified and backed by a company with a proven track record. This type of platform is consistently updated to improve functionality and adaptability, making it easier to integrate advanced features such as bonuses and jackpots. SOFTSWISS will continue to monitor the regulatory situation in Chile and will be happy to offer its software to the regulated market once it’s established.
By taking into account all the factors and steps discussed in this article, you will be well on your way to launching a thriving iGaming business in Latin America.