Chile’s government backs tax payments from online betting sites while Subtel orders 37 more domain blocks

Chile has landed in the familiar place where one arm of the state blocks online betting domains and another collects tax from some of the same operators. For PSPs and payment teams, the important part is not the political theater; it is that the country is treating online gambling as something that can be blocked for licensing purposes and taxed for VAT (value-added tax) purposes at the same time.

1. Subtel, Chile’s telecoms regulator, ordered the blocking of 37 new domains, subdomains, and mirror sites linked to online betting and gaming platforms. The measure uses DNS blocking, and internet access providers have up to 48 hours to carry out the orders.
2. The sites named in the published information include operators associated with Betano, Betsson, Rojabet, Estelarbet, Betcris, 1xBet, Betway, Betfair and Bet365, among others. The blocking follows judicial resolutions that have treated certain online betting operations as illegal in Chile.
3. At the same time, the Servicio de Impuestos Internos (SII) has maintained a mechanism for foreign platforms without domicile or residence in Chile to meet certain tax obligations. Under Resolución Exenta N.º 69 of June 2026, the SII enabled a specific system for taxpayers that provide betting, gambling, casino and related services through digital platforms.
4. Transport and Telecommunications Minister Louis de Grange said there is “no contradiction” between blocking sites and collecting taxes. Speaking to radio Cooperativa, he said Subtel follows the procedure for identifying sites to be blocked, coordinates that information with the Superintendencia de Casinos de Juego, and then internet providers execute the blocks.
5. The SII has also said that online gaming and betting platforms fall within digital entertainment services subject to VAT in certain circumstances. In practice, Chile is separating the licensing/enforcement question from the tax question, which is exactly the kind of split that matters when a PSP is deciding whether a merchant is merely controversial or actually unbankable.

For high-risk payment providers, the takeaway is straightforward: Chile is not presenting online betting as a cleanly legalized market, but it is also not treating every related cross-border platform as outside the tax net. That usually means payment decisions need to track both the court-backed blocking regime and the SII’s tax framework, because one does not cancel out the other.