The casino that doesn't exist: sanctioning influencers

A new regulatory approach has emerged in Chile targeting the promotion of illegal online gambling through social media influencers, marking a shift toward stricter enforcement against unauthorized operators. The strategy focuses on holding content creators accountable rather than solely relying on blocking websites, which has proven ineffective in curbing illicit activity. This method draws inspiration from similar measures implemented in countries such as Australia, Argentina, the Netherlands, and Spain, where authorities have taken legal action against both operators and third parties facilitating their operations. The initiative was outlined in a recent article published by CIPER Chile, authored by Luciano Ahumada, dean of the Faculty of Engineering and Sciences at Universidad Diego Portales. In the piece, Ahumada argues that while the internet is often perceived as a lawless space beyond state jurisdiction, this view misrepresents the reality. He emphasizes that the challenge lies not in the technology itself, but in how regulations are designed and enforced. The current system of attempting to block websites, often with limited success, fails to address the root issue: the ability of foreign-based operators to operate under different jurisdictions and evade oversight. Ahumada proposes an alternative model based on a "white list" of authorized operators. Under this framework, only licensed entities would be permitted to offer online gambling services to residents of Chile. Influencers, advertisers, and other platforms would be required to verify whether an operator is on this list before promoting its services. Those who engage in activities involving unregistered operators could face severe penalties, including financial sanctions. This approach would make it more difficult for unauthorized operators to attract customers, as they would lose access to legitimate marketing channels. The idea aligns with existing policies in several international jurisdictions. For example, Australia and Argentina have issued warnings to influencers that promoting illegal online gambling can result in substantial fines. In the Netherlands, regulators have expanded their scope to include not just operators but also those who assist them through advertising, payments, or other services. Spain has already imposed large fines on foreign operators operating without authorization within its borders. The proposed model offers a clear advantage over traditional methods of regulation. Monitoring offshore companies can be extremely challenging due to their dispersed nature and lack of transparency. However, tracking individuals who generate income within Chile, such as influencers and advertising agencies, is significantly easier. By focusing on these actors, authorities can exert greater control over the flow of information and the commercial viability of illegal gambling operations. This shift reflects a broader trend in regulatory policy, where the emphasis is moving from reactive measures to proactive strategies. Rather than merely responding to violations after they occur, governments are seeking ways to prevent them by tightening controls around key points of entry into the market. This includes not only direct oversight of gambling operators but also indirect influence through the platforms and individuals that shape consumer behavior. The implementation of such a system would require collaboration between multiple stakeholders, including government agencies, private sector entities, and digital platforms. It would also necessitate the development of robust verification mechanisms to ensure compliance. While the exact details remain under discussion, the proposal signals a growing recognition that the fight against illegal online gambling requires a multifaceted and coordinated response.