SiGMA brings FOCUS to Chile where panelists discuss the online presence in Chile, regulation and how COVID-19 has affected the market.
Moderator Victor Arias was joined by distinguished industry players: Cristina Romero and Cristhian Vargas. Romero is a partner of the prestigious LOYRA law firm in Spain and a specialist in global regulatory issues, including Latin America and Transaction Enablement. Vargas is the Business Development Manager of LATAMWIN, a company that focuses on technology development and also focuses on providing services to the LatAm market. Follow all the best moments from the panel Regulating online gaming vital for Chile to recover economically post-COVID below.
Latin America has experienced a wave of regulations in emerging markets and Chile is one of the countries at the front line, where the online gaming markets makes around 4 or 5 million dollars per month. Meanwhile, the pandemic and the increased online presence in the region have heightened the need for regulation.
regulations do not create a market, so as the saying goes, ‘order what is already working’". He further notes that there is a growing need to regulate the verticals of the gaming market in Chile. Specifically, Vargas mentions regulation aiming to make the income flow transparent, that is, the tax flow that is paid in Chile and that “all the parameters of a normal regulation are met: player protection, gambling, money laundering.
Chile a mature market for online gambling?
When discussing whether Chile is a mature market with respect to the online industry, Vargas noted that while Chile is the smallest market for South America, it also shines due to its economic stability, money transaction advantages and technological coverage.
I think it is a very stable market economically and politically also quite stable, which is worth analysing and worth spending time on good regulation.
With all people currently able to access 4G, the highest income level out of the countries in the Americas, and 75% of the connections in the online casino are via mobile platforms, Chile’s presence doesn’t go undetected when referencing iGaming.
Regulation and COVID-19
In light of the travel restrictions and PPE, COVID-19 has increased the popularity of remote play. However, Vargas explores the challenges faced in terms of regulating remote gambling: “We have not been able to have a clear definition of what remote gambling is, so it is very, very open to the issue of regulation in Chile”.
Romero chimes in stating “in the case of gambling, regulation is essential as long as it is open. I think it is important as an opportunity for the country, an opportunity for the jurisdiction, an economic opportunity and more in a context of pandemic where it is necessary to revitalize the economy and obtain tax revenues, understanding perfectly the concern of physical casinos, a little bit to preserve their activity and try to access also the online world”.
SiGMA Group Americas Digital Summit is running from the 22nd to 24th September, bringing well-known faces from the Latin American gaming and tech sector to a series of in-depth debate panels, with content offered in Spanish, Portuguese, and English.
The 7th edition of SiGMA Europe will move its November event to February 16th to 18th 2021.