Browse topics

  • Governing law
    Name Law or Code?

    Chilean Civil Code

    Code

    Chilean Criminal Code

    Code

    Law 19,995, which establishes the general bases for the authorization, operation and control of casinos

    Law

    Law 20,851, which regulates bingos, lotteries or other similar sweepstakes, with a beneficial or solidarity purpose

    Law
    Law 18.568, which establishes standards of Lottery of Concepcion (Lotería)

    Law

    Decree No. 152, of the Ministry of Finance, setting the refunded, coordinated and systematized text of the Chilean Charity Polla organic law

    Decree

    Decree 1,298, which assigns to Polla the administration of the system of sports forecasts (Sistema de Pronósticos Deportivos)

    Decree

    Law 4,566, of Hippodromes Law
    Law N° 19.496, on the protection of rights of consumers rights Law 19,628, Data Protection Act Law
    Law N° 19,628, on data protection Law
    Note 1: Gambling is a regulated activity which is only lawful in situations expressly authorized by law. Games of chance are unlawful, unless authorized by special laws. There is no specific regulation regarding online gambling.
    Note 2: The Ministry of Finance regulates through decrees the games of chance administered by Lotería and the Chilean Charity Polla.  The supreme decree will establish terms and conditions applicable to the games with regards to the operation of them, the steps that Lotería should take to modify them and the conditions for participation by gamblers.

    Last modified 4 Apr 2019

  • Extra-territoriality

    There are neither specific rules nor jurisprudence in regard to these matters. However, according to the Chilean Law on the protection of consumer rights, if the promotion targets Chilean consumers, but is promoted from outside Chile (for example a non-Chilean website or direct marketing from outside Chile), the promoter must inform the consumers:

    • The terms and conditions for the promotion;

    • The amount or number of prizes; and

    • The period in which the prizes can be claimed.

    Also the promoter should publish (as on the contest website) the results of the contests, competitions or raffles. The National Consumer Service (SERNAC) in turn requires that the terms and rules of contests or competitions must specify the following:

    • Description of the prize;

    • Number of prizes;

    • The way to participate in the contest;

    • How to collect the prize.

    SERNAC and the Superintendence of Casinos (SCJ) do not have sanctioning powers, but they will do what they can to take action; however, this is limited and they are unlikely to prioritise such cases.

    Last modified 4 Apr 2019

  • Skills competitions

    Yes, since these kinds of competitions are lawful bets and games. However, it is important to take into account that the winner should be determined on the basis of ability and not chance, since in the latter case it would be considered gambling (which is only allowed in a limited manner as expressly authorized by law).

    Last modified 4 Apr 2019

  • Prize draws

    Yes, but only in the cases specifically allowed by law:

    1. Draws authorized by Law  Number 20,851, which regulates bingos, lotteries or other similar sweepstakes, with a charitable purpose.

    2. Raffles authorized by the Law on the protection of consumer rights, that is sweepstakes used as a method to run a promotion, which imply an additional benefit for the user for the acquisition of a product or service by the consumer (sweepstakes for other purposes are illegal).

    Any other draw in which there is an element of chance in the selection of the winner involved, would be considered and potentially deemed an illegal lottery or game of chance, which is defined in Law 19,995 of Casinos as 'those games whose results do not depend exclusively on the skill of the players, but essentially on chance or luck'. The direct exploitation of games of chance and development of games officially incorporated in the catalogue of games can only be done by authorised operators.

    Last modified 4 Apr 2019

  • Selection of winners

    The terms of competitions and sweepstakes must indicate the terms for claiming prizes.

    The names of the winners should be published (for example on the website of the promoter), and participants must be informed of the results of the contests, competitions or sweepstakes.

    The right to collect the prizes will expire after 60 days from the date of the relevant sweepstake (Law 18.568, which establishes standards of the Lottery of Concepcion).

    Last modified 4 Apr 2019

  • Judges

    Not applicable.

    Last modified 4 Apr 2019

  • Prizes

    No, but as indicated before, the terms of competitions and sweepstakes should indicate the terms for claiming the prizes and a description of the prizes.

    Last modified 4 Apr 2019

  • Registration requirements and fees

    In relation to competitions and draws authorized by the Law on the protection of consumer rights, although it is not mandatory, it is recommended to deposit before a notary a copy of the terms and conditions of the competition or lottery. In addition, participants should be informed that the terms and conditions were deposited before a notary and they must be made available to the contestants, which is usually achieved by publishing the terms and conditions on the contest’s web page.

    The operators can only use the machines or implements previously approved and registered in a registry that carries the Superintendence of Casinos (as stated in the Law of Casinos).

    In regard to taxes, the Chilean VAT Law stated the delivery or free distribution of movable goods for promotional purposes is subject to Value Added Tax of 19%. The promoter should charge this tax.

    Last modified 4 Apr 2019

  • Other local requirements

    The form of participation (including its conditions), the time or term of the competition or sweepstake, the amount of prizes and the method and the period to claim them must be indicated in the terms and conditions of the competition or sweepstake. Promoters should properly publish the results, including the winners, of competitions or sweepstakes.

    Any gambling not explicitly regulated is illegal and only authorized operators can directly exploit games of chance and develop games officially incorporated in the catalogue of games (Law of Casinos).

    The lottery system is reserved to Polla Chilena and Lottery of Concepción, except for those lotteries run for charitable purposes.

    According to Law N° 19,628, that currently regulates data protection in Chile, if any personal data of the participants, and especially winners, is used  for advertising, surveys, market research, product sales, promotional transactions or any other specific purpose, relevant wording must be included in the competition’s materials, so that the participants grant a prior written authorization for the use of said information (i.e. name, ID, images, age, etc).

    Last modified 4 Apr 2019

  • Timing

    No. However, time should be planned in order to deal with data protection compliance issues.

    Last modified 4 Apr 2019

  • Translations

    Yes, terms and other documents of competitions should be translated into Spanish (Law on the protection of consumer rights).

    Last modified 4 Apr 2019

  • Penalties for non-compliance

    Criminal Code:

    • Art. 276: Authors, entrepreneurs, administrators, commissioners or agents of lotteries not legally authorized, will incur a fine of eleven to twenty monthly tax units (approx. US$750 to US$1,360) and will lose the movable objects placed in lottery.

      If objects placed in lottery are real property, the penalty shall be a fine of twenty-one to thirty monthly tax units (approx. US$1,430 to US$2,040).

      In cases of re-offending, imprisonment for a short period of time will also be applied.

    • Art. 277: Bankers, owners, administrators or gambling agents of luck, gambling or chance will be punished with imprisonment in any of its degrees and a fine of eleven to twenty monthly tax units (approx. US$750 to US$1,360)

    • Art. 278: Those who play at the referred places, will suffer the penalty of lesser imprisonment in their minimum degree or fine of eleven to twenty monthly tax units (approx. US$750 to US$1,360)

    • Art. 279: The money or effects put into gambling and the instruments, objects and tools destined for it will always be confiscated.

    Law of Casinos:

    • Art. 51: Any person manipulating, modifying or altering the implements of the games or their development, to the detriment or benefit of the players or the operator, or substituting the material with which the game is played for the same purpose shall be sanctioned with a fine of 60 to 150 monthly tax units (approx. US$4,075 to US$10,200).

    Law on protection of consumers rights:

    • Art. 24: Breach of this law will be sanctioned with a fine up to 50 monthly tax units (approx. US$3,400) In the case of repeat offences, the judge may, as much as, triple the original fine.

    Last modified 4 Apr 2019

  • Restrictiveness of regulations

    Prize promotions are unlawful, except if they are explicitly permitted by law.

    In this way, prize promotions related to lawful bets and games, such as prize promotions based on skill, sweepstakes and contests allowed by law of protection of consumer rights and games of chance for recreational purposes, will be allowed. Other types of mechanisms used for prize promotions will only be accepted provided that they are specifically accepted by law and under the condition they are operated by authorized operators.

    Last modified 4 Apr 2019

  • Regularity of sanctions

    Fines and prison sentences indicated in the Criminal Code are seldom imposed.

    In regard to sweepstakes and competitions permitted by the Law of Protection of Consumer Rights, if the promoter does not comply with their terms or the law, frequently the regulator imposes a fine. Also, if the promoter refuses to deliver a prize to a winning entrant, the entrant may forced fulfilling the promoter to comply with its obligation.

    Last modified 4 Apr 2019

  • Key contacts
    Matias Zegers
    Matias Zegers
    Partner DLA Piper (Chile) [email protected] T + 56 2 2798 2604 View bio

Governing law

What are the main applicable governing laws or codes for prize promotions?

Chile

Chile

Name Law or Code?

Chilean Civil Code

Code

Chilean Criminal Code

Code

Law 19,995, which establishes the general bases for the authorization, operation and control of casinos

Law

Law 20,851, which regulates bingos, lotteries or other similar sweepstakes, with a beneficial or solidarity purpose

Law
Law 18.568, which establishes standards of Lottery of Concepcion (Lotería)

Law

Decree No. 152, of the Ministry of Finance, setting the refunded, coordinated and systematized text of the Chilean Charity Polla organic law

Decree

Decree 1,298, which assigns to Polla the administration of the system of sports forecasts (Sistema de Pronósticos Deportivos)

Decree

Law 4,566, of Hippodromes Law
Law N° 19.496, on the protection of rights of consumers rights Law 19,628, Data Protection Act Law
Law N° 19,628, on data protection Law
Note 1: Gambling is a regulated activity which is only lawful in situations expressly authorized by law. Games of chance are unlawful, unless authorized by special laws. There is no specific regulation regarding online gambling.
Note 2: The Ministry of Finance regulates through decrees the games of chance administered by Lotería and the Chilean Charity Polla.  The supreme decree will establish terms and conditions applicable to the games with regards to the operation of them, the steps that Lotería should take to modify them and the conditions for participation by gamblers.