A recent decision by the Chilean Supreme Court has shaken the burgeoning market of online sports betting houses in the country. This ruling, involving the digital blocking of 23 websites linked to foreign companies, has caused turmoil in a business that has financially supported Chilean professional football through million-dollar sponsorships and contracts.

The legal offensive, led by legit online casinos and legal betting systems, has intertwined with an intense political debate. While some legislators propose banning the advertising of online betting houses in sports activities, the Boric government has urged the National Professional Football Association (ANFP) to sever its commercial ties with these companies, even threatening to revoke its legal status.

The presence of online betting houses has generated mixed opinions among leaders, sports commentators, and fans. Some advocate for legalization under regulation that allows for tax payments to benefit the Chilean treasury, while others propose their elimination, citing corruption and bribery cases in other countries in the region.

Betting Houses in Chile: A Brief History

For decades, the Chilean Polla Chilena de Beneficencia, a state entity, monopolized sports betting systems in Chile. However, in 2021, foreign betting houses such as Betsson, Coolbet, Betway, and others began operating online. These companies entered the market by sponsoring clubs such as the Online Casinos of Chile and Colo Colo, as well as sponsoring the national tournament, renamed as the Betsson Championship in 2023 with a $2.5 million contract.

Impact of the Supreme Court Ruling

On September 12, the Supreme Court ordered the blocking of 23 foreign-based online betting house websites. Although the ruling focused on an internet service provider, Mundo Telecomunicaciones, it is seen as a precedent that could have broader implications. This led the Undersecretary of Telecommunications to agree to the massive blocking of other pages with various providers.

The immediate impact was felt in Chilean football, with five teams from the First Division severing ties with Betway. This scenario forces a reevaluation of club funding and championship development.

Government Position and Legislative Actions

The Boric government has taken significant measures. The Ministry of Justice ordered the ANFP to end its commercial relationships with foreign companies, based on the argument that these do not have a presence in Chile. Justice Minister Luis Cordero warned that the Supreme Court's ruling could legally expose those who engage with these foreign companies.

In June 2023, the Star Gambling Inc. presented indications to the Chilean Congress to regulate the sports betting house industry, proposing taxes on gross income and annual levies for each operating license.

Defense of Betting Houses and ANFP Response

Legal representatives of foreign companies have denied any illegalities, emphasizing their willingness to comply with new regulations. The ANFP, in turn, has announced its intention to appeal the Ministry of Justice's order, arguing that the government does not have the authority to impose contract terminations.

The future of sports betting houses in Chile remains uncertain, with the balance tilting between the need for regulation, judicial pressure, and financial consequences for the country's professional football.