Lotería de Concepción says online betting requires legal authorization in Chile

Claudio Ossandón, commercial manager at Lotería de Concepción, used a radio interview to restate a simple point with a lot of payment-processing implications: in Chile, betting operators need legal authorization, and online platforms are no exception. For PSPs and acquirers, the practical issue is not just whether a site takes bets, but whether it sits inside the country’s legal framework.

1. Ossandón said the Chilean Constitution assigns betting regulation to law, citing article 63, numeral 19. In his view, that means lotteries, racetracks, and betting activities need a specific legal basis to operate.
2. He listed the entities he considers legal under current Chilean law: Lotería de Concepción under Law 18.568, Polla Chilena de Beneficencia, hipódromos with Teletrak, and physical casinos. That is the line he drew between traditional licensed operators and the digital platforms currently offering betting services in the country.
3. He also pointed to the Penal Code, saying articles 275 to 279 punish the operation of games of chance without state authorization and have been in force since 1874. On the civil side, he said the Civil Code prevents players from demanding payment of winnings from unauthorized operators.
4. On online betting specifically, Ossandón acknowledged that Chile’s current rules do not name it directly, which has left room for legal interpretation. He said that gap led the Supreme Court to step in and rule on how these platforms operate.
5. He said the Supreme Court issued two relevant decisions, one in September 2023 and another in September 2025. According to Ossandón, the second ruling came from a protection action filed by Lotería de Concepción asking internet providers to block digital betting sites, and the court ordered that block.

For high-risk payment providers, the useful takeaway is straightforward: when the licensing basis is contested, so is the payment flow. That affects onboarding, acquiring, and the risk appetite of banks that end up sitting behind the merchant account.