Browse topics

  • Governing law
    NameLaw 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 Conception (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 entrusts 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 consumer rights Law
    Law 19,628, Data Protection Act 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 gambling games administered by Lotería and the Chilean Charity Polla are regulated through supreme decrees from the Ministry of Finance, which 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 10 Feb 2017

  • Extra-territoriality

    Please note that that there are no specific regulations or jurisprudence regarding these matters.

    Nevertheless, if the promotion targets Chilean consumers, but is promoted from a non-Chilean website or in direct marketing from outside Chile, according to the Chilean Law on the protection of consumer rights, the promoter must disclose to consumers in the terms and conditions for the promotion the amount or number of prizes and the period in which they can be claimed. In addition, the promoter must publish (such as on the contest website) the results of the contests, competitions or sweepstakes.

    Moreover, the National Consumer Service (SERNAC), one of its missions being to protect Chilean consumers, establishes that the terms and rules of the 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

    • They must be written in Spanish

    Finally, SERNAC and the Superintendence of Casinos (SCJ) do not have sanctioning powers, but they will do what they can to take action, but in reality such action is likely to be limited and they are unlikely to prioritise such cases.

    Last modified 10 Feb 2017

  • Skills competitions

    Yes, since these types of competitions are lawful bets and games. It is important that the winner is determined on the basis of skill not chance, since it would be considered gambling if it is determined based on chance; gambling is only permitted to a limited extent as expressly authorized by law.

    Last modified 10 Feb 2017

  • Prize draws

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

    1. Sweepstakes authorized by the Law on the protection of consumer rights, ie sweepstakes used as a method to carry out a promotion, which imply an additional benefit for the consumer for the acquisition of a product or service by the consumer. Sweepstakes that are not for this purpose are illegal.

    2. Sweepstakes authorized by the Law 20,851, which regulates bingos, lotteries or other similar sweepstakes, with a beneficial purpose.

    Any other sweepstakes where there is an element of chance in the selection of the winner would be a potentially deemed an illegal lottery or game of chance, which 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'. Only authorized operators can directly exploit the games of chance and can only develop the games officially incorporated in the catalog of games.

    Last modified 10 Feb 2017

  • Selection of winners

    The term for claiming the prizes must be indicated in the terms of competitions and sweepstakes.

    Participants must be informed of the results of the contests, competitions or sweepstakes, and they must also be published, eg on the website of the promoter.

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

    Last modified 10 Feb 2017

  • Judges

    Not applicable.

    Last modified 10 Feb 2017

  • Prizes

    No, but as indicated before, the description of the prizes and the terms for claiming them must be indicated in the terms of competitions and sweepstakes.

    Last modified 10 Feb 2017

  • Registration requirements and fees

    Regarding competitions and sweepstakes authorized by the Law on the protection of consumer rights, it is advisable to deposit a copy of the terms and conditions of the competition or sweepstake with a notary, but it is not mandatory. Moreover, it is not sufficient to inform the contestants that the terms and conditions have been deposited with a notary, it is necessary to make them available for the contestants.

    Regarding the Law of Casinos, the operators can only use the machines or implements previously approved and registered in a registry that carries the Superintendence of Casinos.

    The delivery or free distribution of movable goods for promotional purposes is taxed with Value Added Tax (VAT) of 19%. The promoter should charge this tax.

    Last modified 10 Feb 2017

  • Other local requirements

    Promoters must indicate in the terms of the competition or sweepstake the form of participation, including the conditions for participation, the time or term of them, the amount of prizes and the way and period to claim them.

    Promoters will be required to properly publish the results, including the winners, of competitions or sweepstakes.

    Any gambling that is not specifically regulated is unlawful and only authorized operators can directly exploit games of chance and can only develop games officially incorporated in the catalogue of games, according to Law of Casinos.

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

    Last modified 10 Feb 2017

  • Timing

    No, although time should be allowed to deal with data protection issues (eg ensuring an appropriate privacy policy is in place and including appropriate tick box functionality for consents).

    Last modified 10 Feb 2017

  • Translations

    Yes, the Law on the protection of consumer rights indicates that the terms and other documentation of the competitions and sweepstakes must be translated into Spanish.

    Last modified 10 Feb 2017

  • 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 10 Feb 2017

  • Restrictiveness of regulations

    As we have indicated before, prize promotions are unlawful, to the extent they are not specifically allowed by law.

    In connection with the above, they will be permitted when related to lawful bets and games (games of chance for recreational purposes as noted above, sweepstakes and contests allowed by Law of protection of consumer rights and prize promotions based on skill). Other types of prize promotion mechanics will be accepted only if they are specifically allowed by law and even then may only be operated by authorized operators (casinos, lottery and horse racecourses).

    Last modified 10 Feb 2017

  • Regularity of sanctions

    Fines and prison sentences contemplated in the Criminal Code are rarely imposed.

    In relation to competitions and sweepstakes that are allowed by the Law of Protection of Consumer Rights, if the promoter does not comply with their terms or the law, usually the regulator imposes a fine. And if the promoter refuses to provide what has been offered to the consumer, the consumer may require the competent judge to order the enforced compliance, and the judge may require the promoter to provide an equivalent benefit to the consumer in case it is not possible to comply in kind with what was offered.

    Last modified 10 Feb 2017

  • Key contacts

Governing law

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

Chile

Chile

NameLaw 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 Conception (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 entrusts 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 consumer rights Law
Law 19,628, Data Protection Act 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 gambling games administered by Lotería and the Chilean Charity Polla are regulated through supreme decrees from the Ministry of Finance, which 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.