As the Chilean online wagering service providers were looking forward to the legislation that will facilitate the launch of online betting operations in the country, the Supreme Court of Chile accepted the appeal from the state-owned lottery operator Polla Chilena de Beneficencia and ruled that the online betting platforms operating in Chile be blocked.

As reported by the source, the resolution of the country's highest judicial authority stated that these websites “carry out gambling activities within the borders of Chile, without legal authorization or from any national tax authority, which is why they are illegal according to national regulations.”

Reversed Decision:

The ruling came after the Supreme Court reversed the decision of the Court of Appeals which had initially rejected the lottery giant's appeal. The supreme judicial authority therefore reportedly ordered that the sports betting websites offered via broadband provider Mundo Pacífico be blocked as they are lacking legal authorizations and are therefore illegal, according to the ruling. State owned company Polla Chilena de Beneficencia offers lottery and sports betting products and services and seems affected by the subject websites.

The court's decision pronounced by its Third Chamber reportedly stated that “the online betting systems carried out in Chile through the Internet by persons or companies not authorized by law – mentioned in this action – are illegal, and the appeal must be adopted immediately, or within the period determined by the court.”  It continued that the blocking twelve online betting sites indicated in the appeal should be ensured and added that all the entities involved in the said activity could face criminal sanctions, according to the source.

The former prosecutor and lawyer for Casinos Dreams, Carlos Gajardo reportedly commented that the Supreme Court's decision “deals a very hard blow to online betting houses because it expressly points out that they are illegal and constitute a crime and orders their blocking.”  He also said that the effect of the decision to block 12 online wagering platforms is likely to extend to all online sports betting operators. “When establishing the principle, it is a matter of time before it is forced on everyone,” Gajardo reportedly said.

Legislation Goes a Long Way: