Illegal Online Gambling Dominates Illicit Markets, Report Finds
A report by the Confederation of Production and Commerce (CPC) in Chile has identified illegal online gambling as the highest-value illicit market, estimated at US$625 million for 2025. This figure underscores the significant scale of a problem that extends beyond mere taxation issues. Without effective traceability and controls, these online platforms can be exploited to launder illicit funds, disguised as betting activities, and then withdrawn as winnings. In response to these concerns, the Association of Casinos and Games of Chile (ACCJ) formally consulted the Financial Analysis Unit (UAF). The UAF clarified that current online gambling platforms are not considered obligated subjects under anti-money laundering regulations. Legislation is required to incorporate them into the anti-money laundering system. The ACCJ emphasizes that simply paying Value Added Tax (IVA) does not alter this status. The association urges swift progress on a bill currently being processed in the Senate, arguing that the state should not prioritize revenue collection over regulation. Cecilia Valdés, executive president of the ACCJ, stated that the state cannot collect taxes first and then regulate the sector.
The proliferation of unregulated online gambling presents a significant challenge for financial integrity and state revenue. While the illicit market's value is substantial, the core issue lies in the lack of regulatory frameworks to prevent money laundering. The UAF's stance highlights a systemic gap, where tax collection may inadvertently legitimize activities that lack essential anti-money laundering safeguards. The urgency of legislative action, as advocated by the ACCJ, points to a critical juncture where policy must proactively address emerging financial crime vectors. Future governance models will need to integrate robust digital oversight mechanisms to ensure that technological advancements do not outpace regulatory capacity, thereby protecting both economic stability and public trust.
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