An international market is prohibiting the use of offshore online sports betting sites.
The Supreme Court of Chile has accepted a protection appeal by the country’s gaming administrator to block the use of offshore sportsbooks on Mundo Pacífico — an internet service provider. The ruling, which was made in the third chamber of the highest court, was decided based on offshore and legal sports betting in any capacity being banned by the Chilean legal system. Sports betting is prohibited in the country due to its “possible social consequences.”
The 5-0 unanimous vote to ban offshore sportsbooks has ceased the operations of several online gaming platforms in Chile — a country with a population of roughly 18.5 million people. The group includes Malta-based Betway, British online gambling company bet365, Entain-owned gambling operator Sportingbet, Rush Street Interactive’s RushBet, and others.
The ban will also hinder the ability to generate revenue through gambling sponsorship deals.
Taking a stand
The Supreme Court decision in Chile could have implications outside the country due to the continued use of offshore sportsbooks. According to GeoComply, six states in the United States that have yet to authorize legal sports betting lost roughly $320 million in potential tax revenue.
The figure is estimated based on the number of residents who tried to wager in another state.
The use of offshore sportsbooks has caught the attention of government agencies. Earlier this month, the Attorney General’s office, the Division of Gaming Enforcement, and the Division of Consumer Affairs released a joint statement urging New Jersey residents to only use authorized sportsbooks.
The request from the three agencies stems from a lack of oversight from illegal and offshore betting sites. The concerns include paying customers and handling sensitive information.
