ANALYSIS: For the first time, with the victory of José Antonio Kast, the far right has won the presidency in Chile through the ballot box.
And this raises the question: Has the regulation of sports betting and online gambling–stalled in Congress by the anti-iGaming lobby–finally arrived?
Kast, 59-year-old Founder and co-Leader of the Republican Party of Chile, is expected to be more in favour of regulating digital gambling, which has boomed in Chile, because he defends a free market economy.
But it is not clear what he will do.
Some in the iGaming industry fear that the new president, who takes office in March, will not prioritize the issue, as he will face a number of more pressing problems.
Other observers believe that the enormous tax revenue potential of a legalized online gambling market will lead him to expedite the passage of legislation regulating the sector.
Communist Party
In any case, the election result brought relief to sports betting operators since Kast’s principal opponent, Jeannette Jara of the Communist Party of Chile, had a clearly anti-gambling position in the election campaign.
In a campaign where the anti-iGaming lobby managed to impose its narrative–and even a high-ranking representative of the Chilean Catholic Church came out to attack the industry and advocate for the protection of children–, Kast dodged questions about online gambling, implying that regulation would not be a priority in his government.
Kast affirmed that he would enforce the law when asked if he would comply with a Supreme Court ruling ordering the blocking of the websites of 12 betting operators, following an appeal by the Concepción Lottery, which, along with retail casinos, has been waging war against iGaming to protect its markets.
Misconception
The journalist’s question was actually based on a misconception, because the court did not declare online gambling illegal, rather its ruling merely ordered telecommunications companies, which are internet service providers, to block the websites of the 12 platforms.
Digital gambling itself was not criminalized. The platforms simply changed their URLs and continue operating to this day, as if nothing had happened.
In fact, iGaming is neither illegal nor legal under Chilean law, which is why it is urgent to regulate this growing market.
But what will Kast do? Regulate or not regulate?
Luis Jiménez, an expert in the Latin American gaming and iGaming market, believes that Kast, being an economic liberal–remember that Chile was the nation where Milton Friedman and his fellow Chicago school of economists finessed their trickle-down fiscal doctrine that was later embraced by Margaret Thatcher and Ronald Reagan–will be more inclined to regulate iGaming than to prohibit it.
Prohibitionist
“[But] I think it will be the last of his priorities, because he’s going to have a complicated government,” Jiménez told iGamingFuture, adding: “I also don’t think he’ll do anything to block the project.
“It will also depend a lot on how the anti-gambling lobby manages to establish a prohibitionist narrative in the Chilean media.
“That could also do a lot of damage, since Kast, like any good populist, may give in to media pressure,” Jiménez opined.
“Rather than anticipating priorities, what we can say with certainty is that the current scenario could hardly be worse.
“During this administration, the bill regulating online gambling platforms did not advance due to the Executive’s initiative, but rather thanks to the persistence and work of the Association and all the arguments and technical evidence presented in various instances, both in the Chamber of Deputies and in the Senate,” he told me.
“Looking ahead to the government of President-elect José Antonio Kast, we see a great opportunity for a shift in perspective, one that recognizes that well-designed regulations are key to improving tax collection, guiding the market toward legality, and thereby strengthening consumer protection.
“That is what the country needs to resolve, regardless of the order in which the new government defines its priorities,” Baeza concluded.
