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The lower house of Chile’s Congress overwhelmingly approved a motion on Wednesday (November 30) to prohibit betting advertising and sponsorships around Chilean sports events, although several steps remain in the legislative process before any restrictions would take effect.
After an hour-long debate, the Chamber of Deputies voted 118-1, with eight abstentions, in support of a motion to prohibit advertisements for online sports betting by sports events and clubs in Chile.
As approved by the Chamber’s sports commission in October, Bill no. 14892-29 would expressly prohibit commercial partnerships between sports-betting platforms and Chilean sports teams or federations and generally ban any form of betting advertising or sponsorship activity.
The only exceptions would be for legally authorised betting operators — currently limited to the Polla Chilena public lottery — on television between 10pm and 6am and radio between 8pm and 6am. The advertising prohibitions would take effect 12 months after approval and publication of the new law.
Deputy Marco Antonio Sulantay Olivares, the bill’s chief sponsor, said betting ads have become “universal” at Chilean sports stadiums, on television and radio, as well as online channels. He also noted that 14 of the 16 clubs in Chile’s equivalent of the Premier League have an official betting sponsor, citing Betsson, Betano and Betway as three prominent brands operating in Chile “without any type of authorisation”.
Sulantay also noted Spain’s 2020 royal decree banning most forms of gambling advertising and sponsorship and raised concern at the exposure of young people to betting ads through sports events.
“It is inappropriate that the staging of sporting events incites spectators to participate in sports bets online, as this disturbs the very essence of sport which involves team spirit, perseverance and a healthy lifestyle,” Sulantay said.
Wednesday’s vote is far from the final word on the matter of online betting advertising in Chile, however.
The measure will now return for further consideration by the Chamber of Deputies’ sports commission to address specific amendments that have been proposed by lawmakers.
After clearing that commission for the second time, the bill would then also have to be approved by the Senate and finally sanctioned by President Gabriel Boric.
It is far from inconceivable that the bill will ultimately be superseded by a separate legislative proposal to fully regulate online gambling in Chile.
During Wednesday’s debate, several federal deputies called for the advertising measure to be accompanied by the approval of the broader bill introduced by Chile’s government in March, which would establish a licensing and taxation regime for online gaming and betting operators.
That bill remains pending in the economy commission of the Chamber of Deputies, where a planned discussion and vote was postponed several months ago at the request of Boric’s administration.
Deputy Mauricio Ojeda told fellow deputies on Wednesday that he would “strongly support” the advertising restrictions, “but we have to legislate to reach an agreement where we decide whether [online betting platforms] are legal or illegal”.
“Personally, I think they are absolutely illegal because, among other advantages they have, there is capital flight as Chileans are betting through credit cards and these are revenues that are going abroad without any kind of taxes in Chile,” Ojeda said.
Another deputy, Andrés Celis, similarly called for online betting to be regulated and raised concerns that the advertising restrictions would contradict provisions in Chile’s most recent budget bill related to its plans to co-host the 2030 World Cup as any betting partnerships agreed by FIFA would then be in contravention of Chilean law.
As highlighted by VIXIO GamblingCompliance’s recent Latin America Online Outlook report, rising scrutiny of sports-betting sponsorships is emerging as a trend in the region. In August, Brazil’s Ministry of Justice also began an apparent investigation into relationships between offshore betting operators and leading Brazilian football teams in advance of regulations for fixed-odds sports betting being adopted.
