Posted on: September 13, 2023, 03:09h.
Last updated on: September 13, 2023, 03:09h.
Sports betting operators that have spent resources and money establishing a foothold in Chile have received some potentially devastating news. The country’s Supreme Court has ordered all of them to leave the country, effective immediately.
The Supreme Court ruled this Tuesday that access to some 20 online betting sites from Chile must be blocked, ruling that they’re operating illegally. This arises as a result of a legal complaint Polla Chilena de Beneficencia filed in 2022 against the telecommunications company Mundo Pacífico.
Polla Chilena is a state-run gaming operator that, in accordance with existing regulations, is the only company with authorization to provide gaming services in the country. As such, its fight with Mundo Pacífico looked to prevent that entity, as well as the gaming operators that use it, from serving the Chilean gaming market. It has now won the fight.
All Bets Are Off
Initially, Polla Chilena’s appeal was rejected by the Court of Appeals of Concepción. However, the Supreme Court reversed that decision with its ruling on Tuesday. It supported the appeal and ordered the blocking of all online betting sites under Mundo Pacífico’s umbrella.
The ruling of the Supreme Court determined that Mundo Pacífico cannot transmit or promote any form of gaming, unless it first receives legal authorization. As such, it must immediately block all the websites Polla Chilena included in its complaint.
As can be deduced from the cited regulations, online sports betting, as reported in the case of the appellants, is prohibited in our legal framework, considering the debts incurred in such games of chance as illegal, and sanctioning both those who facilitate this activity and those who participate in it,” the Chilean Supreme Court ruling.
The same ruling determined that these sites are operating illegally. The court also established that Polla Chilena is the only company authorized to conduct online gaming activities in the country.
The decision affects almost two dozen operators, including Betsson, Betcris, Coolbet, Rivalo and others. In total, 12 operators are on the list, but the decision could impact another 11 that Polla Chilena didn’t specifically mention.
Furthermore, according to the high court, those who facilitate gambling and those who participate in it are subject to criminal sanctions. None of the operators has made an official statement, but Casino.org has reached out to several for more details.
The ruling only affects Mundo Telecomunicaciones, the third-largest Internet provider in Chile. The decision could affect up to 795,541 users, according to figures from the country’s Undersecretariat of Telecommunications.
Chilean Sports, Athletes Suffer
The Ministry of Justice put Chilean soccer in a bad position ahead of Tuesday’s ruling. Two weeks ago, it ordered an end to the million-dollar sponsorship contracts the industry maintains with about 12 online betting operators.
The authorities gave the National Association of Professional Football (ANFP, for its Spanish acronym) 30 days to cut all ties with these companies. Failure to do so means losing the legal footing that allows it to operate in the country.
The sports and sports betting industries immediately cried foul, as the man behind the decision, Minister of Justice and lawyer Luis Cordero, has had strong ties to the Chilean Association of Gaming Casinos. Therefore, his decision was viewed as a clear conflict of interest.
The ANFP, which has an established relationship with Betsson, said it was going to fight the decision, arguing that the Ministry of Justice and Human Rights lacks the legal powers to issue the ban. Therefore, it was willing to challenge the decision in court, but the surprise decision by the Supreme Court now makes its case more difficult.
