ProntoPaga will cease payment processing for Chilean online betting platforms registered with the Servicio de Impuestos Internos (SII) that fail to pay digital value-added tax (IVA). This decision was announced following the tax deadline on October 20, according to SBC Noticias.
What Happened
ProntoPaga announced it will suspend payment processing for online betting platforms in Chile that are registered with the Servicio de Impuestos Internos (SII) but do not comply with digital IVA payments. The company’s fiscal officer, Teresita Valverde, stated that this measure will be “firm and without exceptions,” urging clients to regularize their tax status to maintain access to the fintech’s services, as reported by Diario Financiero. This decision follows the expiration of the tax payment deadline on October 20.
Payment processors like ProntoPaga are integral to the operations of betting platforms, facilitating connections between companies, banks, and other payment methods. This enables users to deposit funds and withdraw winnings. Consequently, the loss of such a provider could limit available alternatives for customers in Chile.
Key Details
- ProntoPaga’s decision targets the 25 companies registered with the SII under the simplified system for digital IVA, which applies a 19 percent tax on digital services in Chile, according to SBC Noticias.
- For platforms not voluntarily registered, the SII has implemented a “change of subject” mechanism, obliging banks and card issuers to withhold 19 percent of deposits made by Chilean users to those platforms, SBC Noticias reported.
- The president of the Chilean Association of Gaming Casinos reportedly stated that tax compliance does not negate the necessity of obtaining an operating permit.
- In September, the Subsecretaría de Telecomunicaciones (Subtel) and the Superintendencia de Casinos de Juego continued actions to block online betting sites, affecting 13 platforms reportedly registered with the SII and paying IVA, following a Santiago Court of Appeals ruling in August.
- ProntoPaga was authorized as a payment service provider (PSP) in January 2025 by Chile’s Comisión para el Mercado Financiero (CMF) to operate under the cross-border acquiring model, as per SBC Noticias.
Why It Matters
The action by ProntoPaga underscores increasing regulatory and fiscal pressure on online betting operators in Chile. The simultaneous efforts by the SII to collect taxes and by Subtel and the Superintendence of Casinos of Gaming to block sites indicate a multi-pronged approach to control the sector. The ongoing legislative debate in the Senate over a bill to regulate online betting, including proposed specific taxes and a cooling-off period, further highlights the market’s evolving regulatory landscape, according to Diario Financiero and SBC Noticias. Senator Paulina Núñez emphasized that the sector should be evaluated beyond its fiscal contributions, also considering its social implications.
What’s Next
The compliance rate of registered companies with the IVA payment deadline will clarify the immediate impact of ProntoPaga’s announced suspensions. Should other payment processors adopt similar policies, tax compliance could become a critical condition for platforms to continue accepting deposits in Chile. Concurrently, the Senate is expected to continue discussions on the regulatory bill, which presents contrasting views on whether to establish a licensing system or pursue prohibition of the activity, as reported by SBC Noticias and La Segunda.
Originally reported by SBC NoticiasPublished
Sources & References
Primary source
- SBC Noticiassbcnoticias.com