Luis Cordero argues that the SII exceeded its authority by creating a tax-registration process for offshore gambling platforms
The dispute exposes a wider institutional conflict between collecting tax from online betting activity and deciding whether the companies providing it are legally authorised to operate in Chile.
Luis Cordero, external legal adviser to the Chilean Association of Casinos and Gaming, questioned the procedure introduced by the Internal Revenue Service for foreign online betting and casino platforms.
In an interview with El Mercurio, the former justice and security minister argued that the SII had effectively created an administrative route for platforms to regularise their position without a gambling licence.
Luis Cordero, External Legal Adviser to the ACCJ
“The decision is absolutely illegal. The SII did not have the authority to issue that resolution.
“Establishing a procedure for registration and tax collection as though these platforms were being treated in the same way as a regulated casino are two factors that make it illegal and create a series of associated risks.”
SII requires payment of 19% VAT
The SII introduced a simplified registration system in June 2026 for online betting, gambling and casino platforms without an address or residence in Chile.
Registered operators must declare and pay digital VAT. Platforms that provided services during the previous 36 tax periods are also required to account for outstanding tax.
The standard rate is 19%. The taxable amount is generally based on the money staked by customers in Chile. When an operator can reliably document prizes paid, those payments may be deducted when determining the taxable base.
Where a platform does not register voluntarily, the SII can apply a change-of-taxpayer mechanism. This requires banks, card companies and other payment providers to retain the VAT from transactions and transfer it to the Treasury.
The SII has expressly stated that collecting tax does not authorise a platform to operate, regularise its gambling status or replace the powers of other public authorities.
Cordero identifies conflict with court orders
Cordero disputes that distinction. He argues that requiring platforms to register creates an appearance of administrative recognition while Chilean courts have ordered internet providers to block access to online betting sites operating without authorisation.
His concerns extend beyond tax collection. He identified risks involving children, education, public safety and the movement of funds.
Payment gateways require particular scrutiny, he said, because authorities need to establish how gambling funds move and where they ultimately go.
Any future regulated market would need clear rules governing operating permission, licensing, corporate identity, tax residence and the traceability of funds. Cordero also called for controls addressing gambling harm, excessive betting and advertising.
ACCJ seeks review by the Comptroller General
The ACCJ asked Chile’s Comptroller General to examine the SII measure. After the authority declined to issue a substantive ruling, the association requested reconsideration.
Cordero has indicated that the dispute may proceed to the courts if the administrative challenge does not resolve the issue.
No court or oversight authority has declared the SII tax mechanism unlawful. At present, the description of the measure as “absolutely illegal” represents Cordero’s legal opinion and the position advanced by the ACCJ.
