SCJ Addresses Illegal Online Betting Platforms
Information from an internal report in Chile about Enjoy Casino’s online betting platform has brought on further criticism of the country’s Superintendencia de Casinos, Vivien Villagrán. The first complaint towards Villagrán was that she had not suitably denounced Enjoy’s actions. The report now shows contradictions of her initial statements given about EnjoyWin’s online betting developments.
An internal report about Enjoy Casino’s online betting has brought on further criticism of the country’s Superintendencia de Casinos, Vivien Villagrán. ©Tingey Injury Law Firm/Unsplash
Is it legal to bet online in Chile?
As with many countries, even those where land-based gambling is embraced and regulated, the regulation of online gambling is another story in Chile. Though many politicians and those in the gambling industry support the full legalization and regulation of online games of chance, as it stands today, only land-based casinos are able to operate legally in the country.
That has of course become an even bigger issue in the last months as first widespread protests and the COVID-19 pandemic forced people indoors out of safety concerns. Gaming fans have been hungry for ways to continue enjoying betting, but sadly have not been catered to by the government and Chile’s gambling regulator, the Superintendencia de Casinos de Juego (SCJ), so far.
The major loophole has been the availability of “offshore” gambling sites. Offshore casinos make their online portfolios available to Chileans, who are able to enjoy them basically without fear of legal consequence. Enjoy Casino operates within Chile, and has thus gotten into hot water by offering games of chance via its EnjoyWin online platform.
The Role of the Superintendent
Chile’s Superintendent of Casinos, Vivien Villagrán recently signed an agreement with Chile’s Financial Analysis Unit to create stronger anti-money laundering policies and consequences within the country. Perhaps part of this move came from recent pressure Villagrán has faced since the controversy over EnjoyWin has come to light.
Villagrán initially argued that EnjoyWin was authorized to provide its online games because “no characteristics associated with a game of chance are observed” within the platform. However, an internal report from SCJ has since been revealed, which directly contradicts that statement.
The issue comes down to whether or not EnjoyWin “coins” — which must be purchased by users — hold a financial value or are used only to extend playing time. An analysis of EnjoyWin to determine if it would be authorized stated clearly that the platforms bet coins hold a value.
The case went to court in March of 2021, despite the prosecutor’s office’s request to have it dismissed. One of his arguments was that only three test transactions had been made on EnjoyWin before the SCJ took action to limit the site, meaning “there was no commercial exploitation of any kind.” He says it is not appropriate, for this reason, to file a criminal complaint against the SCJ.
The SCJ maintained its innocence — stating that it had only made a preliminary evaluation of the site at the time it was authorized, and that it acted quickly to close EnjoyWin when it was clear they were not operating legally.
In June, the case’s prosecutor Patricio Cooper agreed to dismiss the case after a 70-day investigation. However, the plaintiff of the case, Luis Mariano Rendón, has requested a further independent investigation be carried out.
The SCJ has already been undergoing an audit of its activities, putting the organization in a weak position, but it is unclear whether further investigation of the EnjoyWin case will be pursued. In any case, the platform is no longer operational, though Chilean betting fans keep their fingers crossed for progress on online betting legalization soon.
