Chilean soccer clubs lose millions in revenue from sports betting sponsors
Chile is one of the few countries in Latin America that has not legalized sports betting yet. However, this has not stopped several online bookmakers from operating in the country and sponsoring local soccer teams. According to a report by the Center for Journalistic Research (CIPER), some of the most popular teams in Chile have deals with sports betting operators as their main or secondary sponsors. These include the University of Chile, Club Deportes La Serena, Coquimbo Unido, Ñublense, Audax Italiano, Everton and Unión La Calera.
However, these sponsorship arrangements are now under threat due to a new bill that proposes to ban sports betting advertising and promotion in sports events and clubs. The bill was submitted by Marco Antonio Sulantay, a deputy from the Independent Democratic Union Party (UDI), who argues that sports betting is illegal in Chile and that it poses a serious problem for the participation of minors and the integrity of sports. Sulantay also claims that sports betting operators do not pay any taxes on their profits in Chile, unlike other online services such as Netflix or Spotify.
The bill has received support from some members of the Sports Commission of the Chamber of Deputies, but it has also faced strong opposition from the National Association of Professional Soccer (ANFP), the governing body of Chilean soccer. The ANFP argues that sports betting sponsors are a significant source of income for the clubs, especially during the pandemic, and that banning them would cause profound damage to Chilean soccer. The ANFP estimates that the income from these sponsors represents 7.8% of the total revenue of the clubs.
ANFP calls for smart regulation instead of prohibition
The ANFP has also criticized the bill for blaming soccer for the country’s gambling problem and for ignoring the reality of the global sports betting market. The ANFP points out that sports betting is a legal and regulated activity in many countries around the world, including some of Chile’s neighbors such as Argentina, Colombia and Peru. The ANFP also asserts that sports betting can bring benefits to soccer, such as increasing fan engagement, generating more resources for development and social responsibility programs, and enhancing transparency and integrity.
The ANFP proposes that instead of banning sports betting advertising and sponsorship, Chile should adopt a smart regulation model that would allow licensed operators to offer their services in a safe and responsible manner. The ANFP suggests that this regulation should include measures such as:
- Establishing a licensing system for sports betting operators, with strict requirements and controls.
- Imposing taxes on sports betting revenue, which could be used to fund sports development and social causes.
- Creating a national self-exclusion registry for problem gamblers, as well as prevention and treatment programs.
- Implementing safeguards to protect minors from accessing sports betting platforms or venues.
- Setting limits on the amount and frequency of sports betting advertising and sponsorship, as well as ensuring that they do not promote irresponsible or addictive behavior.
- Enforcing sanctions for illegal or unlicensed operators, as well as for match-fixing or corruption cases.
The ANFP believes that this approach would be more effective than prohibition, as it would recognize the reality and demand of sports betting in Chile, while also protecting the interests and rights of consumers, clubs and society.
The future of sports betting in Chile is uncertain
The bill to ban sports betting advertising and sponsorship is still under discussion in the Sports Commission of the Chamber of Deputies, and it is not clear if it will be approved or rejected. However, even if it passes, it would still need to go through several other stages before becoming law, such as being voted by the full Chamber of Deputies, being reviewed by the Senate, and being signed by the President.
Meanwhile, Chile is also considering another bill that aims to legalize and regulate online gambling in general, including casino games, poker and bingo. This bill was introduced by Senator Felipe Harboe in 2019, but it has not made much progress since then. Harboe has stated that he hopes to resume the discussion on his bill this year, as he believes that online gambling is a reality that cannot be ignored or banned.
The outcome of these two bills will determine the future of sports betting in Chile, as well as its impact on soccer and other sports. For now, Chilean soccer clubs will have to wait and see if they can keep their lucrative deals with sports betting sponsors or if they will have to look for other sources of funding.
