How to Start an Online Casino in Chile? LATAM Legislation

Chile’s online gambling market is booming, offering a dynamic and lucrative opportunity for entrepreneurs interested in online sports betting and casino software development. With around 900 operators generating approximately USD 150 million annually, the potential is massive.

However, to start an online casino in Chile, you need to navigate the legal landscape, secure the necessary licenses, and build a robust betting site positioned perfectly for the local gambling market. This guide outlines how to start an online casino in Chile, detailing the essential steps to help you launch and operate a successful online casino in this jurisdiction.

• Chile’s online gambling market is growing rapidly, with around 900 operators generating approximately USD 150 million annually, highlighting significant entrepreneurial opportunities.
• To operate an online casino in Chile, you have to navigate a complex regulatory landscape, with current discussions around legislation to create a licensing framework for online gambling and related forms of digital entertainment.
• Key components for success include thorough market analysis, effective financial planning, a user-friendly platform, and strong security measures to ensure responsible gaming.

Understanding the Chilean Online Gambling Market

The Chilean iGaming market is rapidly growing, driven by a high internet penetration rate of 90.2% and a strong gambling tradition. This market is not only one of the most dynamic in Latin American countries but also one of the most promising in terms of growth potential.

Entering this casino market requires a deep understanding of local preferences, market dynamics, and regulatory landscape. In this section, we will highlight how to start an online casino business in this vibrant environment with a focus on the regulatory landscape and historical context.

Is Online Gambling Legal in Chile?

The legal status of online gambling in Chile is complex. While the Chilean Supreme Court has ruled that all betting activities, including online casino and sports betting platforms, are illegal unless offered by authorized local operators, there is currently no licensing system in place for online gambling. Only land-based casinos can get a gambling license in this jurisdiction. However, the government is actively working on legislation to regulate online gambling and sports betting, indicating a promising future for the industry.

Overview of the Chilean Gambling Market

Chile’s gambling market has seen substantial growth, particularly since 2020, and is projected to continue this trajectory at a compound annual growth rate (CAGR) of 6.9% from until 2026. The gaming revenue is expected to reach approximately 500 million dollars, reflecting a consistent annual growth rate of over 20%.

This growth is fueled by a young demographic, with nearly equal participation between male and female players, indicating widespread appeal across various segments of the population.

While defined regulations don’t guide the online sector of the industry, it is still a rapidly growing industry. Offshore operators in the virtual gambling space make an estimated sum of $130 to $170 million yearly as revenue. Experts believe this will double in size if robust regulations are introduced.

The popularity of online casino games such as slots, live dealer games, and poker is driven by technological advancements and increased smartphone penetration, with an estimated 80% of Chileans owning smartphones. This widespread smartphone adoption facilitates access to online gaming platforms, contributing to the expansion of the online market.

These factors, combined with Chile’s rich gambling tradition, position the country as one of the most dynamic and promising markets in the LatAm online casino industry, with significant potential for continued expansion.

Brief History of Online Gambling in Chile

Chile has a rich gambling culture that dates back to the 19th century with betting on horse races. However, the first land-based casino in this country wasn’t opened until 1930. The Chilean iGaming industry remained unregulated for the next 60 years. Then in 1995, the first legislation to regulate online casinos in this jurisdiction was introduced. Ten years later (in 2005), the government updated this law to regulate the 24 physical casinos open in the country.

The advent of online gambling in Chile began in 1994, allowing Chilean players access to online platforms. This makes Chile one of the oldest markets for online gambling and sports betting in Latin America. Today, over 900 operators cater to the Chilean market, generating significant annual revenue. As the industry continues to grow and new gambling laws are introduced, it is expected that more operators will enter the market, further boosting competition and innovation.

Online Gambling Regulations in Chile

Regulations play a pivotal role in Chile’s online gambling industry. The Chilean Supreme Court’s ruling deems all gambling activities illegal unless authorized by local operators. Currently, there is no licensing system, but the government is pushing for the approval of the Online Gambling Bill.

In December 2023, Chile’s Chamber of Deputies passed a bill to regulate online gaming, which was then forwarded to the Senate for further deliberation. As of February 2025, the Senate’s Finance Committee was expected to resume debate on this bill. 

This legislative effort aims to create a comprehensive legal framework, which will significantly impact the market dynamics and provide a structured environment for new entrants.

Legal Requirements and Licensing for Online Gambling Business in Chile

While brick-and-mortar casinos in Chile can obtain a gambling license to operate, there is currently no legal framework for licensing in this jurisdiction. As a result, operators seeking to run a gambling business in this jurisdiction have to apply for and get an international license. 

The most popular licenses typically obtained by operators in the Latin American market include the Curaçao and Kahnawake gaming licenses. You can check out our list of the best gambling licenses to learn about the different licenses you can get to gain credibility and ensure legal operation within the Chilean market.

Obtaining a License

Online casino operators seeking to operate legally in Chile need to learn how to secure a gambling license in international jurisdictions. The specific requirements vary from one location to the other, but the general guidelines are that you demonstrate financial capability and willingness to comply with standard regulations for player protection, anti-money laundering, data security, and so on.

Jurisdictional advisory services can provide valuable assistance in navigating the licensing process for the specific license you wish to apply for, ensuring all legal aspects are thoroughly addressed, and helping to avoid potential pitfalls that could hinder operations.

If you aim to apply for an international license, bear in mind that the proposed legislation intends to introduce a local licensing framework, potentially impacting the validity and acceptance of foreign licenses. It’s advisable to monitor legislative developments closely to ensure compliance with future local regulations.

Registering a Company

Registering a company is a standard requirement in any jurisdiction you wish to obtain a gambling license. This includes various steps and documentation such as submitting a proof of identity for key stakeholders, business structure details, and compliance with local regulations. Meeting all legal requirements is vital for a smooth registration process, which may also involve setting up a local bank account to manage financial transactions effectively.

Compliance

Compliance with local regulations, relating to taxation, license renewal, fair play, and player protection is pretty standard in all locations.

According to the bill that is currently in progress for the gambling market in Chile, acquiring a license is expected to involve a five-year term, renewable upon meeting compliance measures. This includes adherence to anti-money laundering regulations and KYC policies. Detailed documentation on ownership structure, key personnel, and partnerships is necessary.

Virtually all forms of gambling must comply with these stringent regulations to ensure a secure and responsible gaming environment for players.

Building a Successful Online Casino Business in Chile

To build a successful online casino in Chile you need to follow a comprehensive approach that integrates strategic planning, market insights, and technological innovation. Here are the critical steps to follow.

1. Market Analysis

Thorough market research lays the foundation for a successful iGaming business. By analyzing the target market, you can tailor your offerings and marketing strategies effectively. Knowledge of the legal landscape, local preferences, and emerging trends provides a competitive edge in this market. Understanding the competitive landscape and identifying key factors that can set your business apart is crucial for positioning your brand effectively.

2. Budgeting and Financial Planning

Launching an online casino requires detailed financial planning. This includes budgeting for initial setup costs, marketing campaigns, and ongoing operational expenses. A well-structured financial plan aids in efficient resource management and long-term sustainability. In setting out your financial plan, you need to forecast revenue streams, manage cash flow, and set funds aside for unexpected expenses, ensuring your business remains financially resilient.

3. Choosing a Reliable Software Provider

A reliable software development company is an important partner that will contribute to the smooth running of your online casino operations. Your choice of software provider will determine the quality of your software, the fairness and security of the integrated games, and the overall player experience on your platform.

Since the casino software also determines how the backend of your platform will run, it plays a significant role in the effectiveness of your casino operations. In addition to meeting all your needs today, ensure the software provider offers scalable solutions that can grow with your online gaming business and support emerging technologies like mobile gaming and virtual reality.

4. Creating a Website or App: Design and Development

A user-friendly website or app ensures a seamless gaming experience on online gaming platforms. Prioritize mobile optimization, intuitive design, and a strong brand identity. For more insights on how to start an online gambling website read our detailed guide about how to start a casino app to ensure your platform stands out in the competitive online casino market.

5. Selecting Games and Game Providers

You get to attract and retain players better when you choose the right games and game providers to feature on your gambling platform. It helps if your platform offers games in the most popular categories including slots, live dealer games, and sports betting options.

Partnering with reputable providers ensures a diverse and engaging game portfolio, while also boosting your reputation. Your game selection should be updated regularly and consider offering exclusive content to keep your platform fresh and appealing to both new and existing players.

6. Payment Methods and Transaction Security

Gaining customer trust hinges on offering popular and secure payment gateways. You should integrate payment solutions that cater to the preferences of players, such as bank transfers, debit and credit cards, and e-wallets. In addition to offering popular payment methods, ensuring transaction security and accepting local currencies will enhance the user experience and attract a broader audience.

Launching and Operating an Online Casino in Chile

After setting up your casino gaming business in Chile, running it successfully requires careful attention to several key factors. You have to pay attention to security, customer support, and other elements that are crucial in ensuring a seamless and enjoyable gaming experience for players. This section will highlight some of these essential operational components, helping you establish a successful casino business in Chile.

Ensuring Security and Responsible Gaming

Robust security measures and responsible gambling practices ensure a safe and ethical gaming environment. Proposed regulations in Chile aim to enhance player safety and protect licensed operators from illegal activities. To stay compliant with the regulations in this regulated market, you need to implement cutting-edge encryption technologies and anti-fraud systems in order to build player trust. Operators should also promote fair play and provide resources for players to gamble responsibly such as self-exclusion options and support for problem gambling.

Customer Support and Retention

Excellent customer support is vital for player satisfaction and loyalty. Multilingual support channels, a clear complaints process, and responsive live chat features significantly enhance the customer experience. Providing quick and effective solutions to player issues can set your casino apart from competitors. Loyalty programs and special promotions for VIP customers can further boost retention and foster long-term relationships with players, enhancing their overall experience.

Financial Management and Performance Monitoring

Sustainability in online casinos requires ongoing financial management and performance monitoring. Operators must monitor the health of their gambling business through continuous financial evaluation, regular audits, and detailed documentation. Regular analysis of financial performance allows operators to make informed decisions, optimize resource allocation, and ensure long-term profitability.

Marketing and Promotion Strategies for Online Casino Business in Chile

To attract and retain customers in Chile’s competitive online gambling market, you need a comprehensive plan to market and promote your business. Localized marketing, event-aligned promotions, and leveraging local influencers are some of the key strategies that can enhance brand visibility. You also need to tailor your messaging to resonate with Chilean cultural nuances and preferences as this can boost engagement and customer loyalty quite significantly.

iGaming operators should leverage online advertising solutions including social media platforms and affiliate marketing strategies to reach a broader audience effectively. Platforms like Facebook and Instagram, which are popular in Chile, can be leveraged to create targeted campaigns that appeal to the local audience.

The Future of Online Gambling in Chile

The future of online gambling in Chile looks promising, with projected market growth and increased popularity of online casinos. By 2026, the Chilean gambling market is expected to reach a gross gaming revenue of approximately USD 600 million, reflecting a steady annual growth rate of over 22%.

Ongoing legislative efforts to regulate online gambling will provide a more structured and secure environment for operators and players alike, potentially increasing the number of licensed operators by 30%. This will create a safer gaming environment for players while also helping the government earn some revenue through taxes and licensing fees.

Open an Online Casino in Chile with CrustLab!

In summary, the casino gaming market in Chile is currently in a state of uncertainty. However, things look very promising with new legislation on the way. With thorough market analysis and meticulous planning, you can position your gambling business to thrive and survive in the long term.

CrustLab offers comprehensive iGaming development services to help you launch and operate a successful online casino in Chile. From software development to regulatory compliance, our team of experts is here to guide you every step of the way.

Ready to take the plunge? Contact us and let’s bring your online casino vision to life.