Chile’s Subtel proposes DNS blocking for illegal online betting sites

Chile’s telecommunications regulator, Subtel, has responded to a Santiago Court of Appeals order with a technical proposal for blocking online betting sites that operate without authorization. For PSPs, acquirers, and telecoms, the important bit is not the headline-level “blocking” idea, but the method: Subtel says DNS blocking is the most proportionate option in a framework that still has to deal with mirror sites and fast-moving domain changes.

1. Subtel filed its response within the five-day deadline set by the Court of Appeals of Santiago, following earlier rulings by the Supreme Court. The judicial order is directed at internet access providers — Entel, GTD, WOM, Claro, and Movistar — not directly at Subtel, although the agency is acting as the technical and regulatory body guiding how the measure could be implemented under current law.
2. The case was triggered in 2024 by Lotería de Concepción, which alleged that online betting platforms without legal authorization in Chile were not being blocked as required. Subtel told the court there is currently no mechanism capable of permanently and fully effectively combating so-called mirror sites, because these platforms can change domains and operating structures quickly.
3. Subtel’s technical report lays out three blocking options. Deep Packet Inspection (DPI) inspects network traffic in depth, but the agency describes it as invasive, complex to deploy, and potentially problematic for privacy and network neutrality. Server Name Indication (SNI) blocking uses the server name presented at the start of a session, but its effectiveness can be reduced by technologies that hide that information and it may affect shared services.
4. The option Subtel backs is Domain Name System (DNS) blocking, which prevents resolution of specific domains. In the agency’s view, DNS blocking is less invasive and more proportionate, and blocking individual domains is the approach most compatible with the regulatory principles currently in force.
5. The proposed operating model is coordinated across agencies: interested parties identify the domains, the Superintendence of Gaming Casinos (SCJ) validates them, Subtel formally notifies the telecom companies, and the telcos implement the block within the set deadlines. The process also includes ongoing updates when new domains or mirror sites are detected.

For high-risk operators and the payment providers around them, the practical takeaway is straightforward: Chile is moving toward a domain-level enforcement model rather than a broad network-level clampdown. That tends to mean the enforcement surface can change quickly, especially where mirror sites are part of the playbook.