The growth of illegal betting in Chile is diverting household spending away from savings, investment and debt repayment, according to Maximiliano Valdés, founder and director of financial news outlet Chócale. Speaking at the Second National Financial Education Meeting (ENDEF), held on 20 October, Valdés warned that the expansion of unauthorised betting platforms presented risks extending beyond gambling-related harm to the wider economy.
“Every peso that goes to a bet is a peso that does not enter the formal economy,” Valdés said. “It does not go to savings, it does not go to investment, it does not go to debt repayment and it does not go to commerce.” Valdés also highlighted concerns about underage gambling, citing research by the Responsible Gaming Corporation which found that the average age of a first bet among those surveyed was 15.5 years.
His comments come as Chile continues to debate legislation intended to establish a regulated online gambling market. The country has faced repeated legal challenges concerning offshore betting platforms, including court-ordered restrictions on unauthorised operators.
Valdés argued that financial education must play a greater role in helping consumers understand the risks associated with gambling and other financial decisions, particularly during periods of economic pressure. “When the family budget tightens, bad financial decisions can increase and end up costing more,” he said.
The ENDEF conference, organised through Chócale’s Personal Finance Hub, brought together representatives from financial institutions, regulators and academia to discuss financial inclusion, consumer protection and Chile’s capital market reforms. Among those attending were Central Bank board member Kevin Cowan, Financial Market Commission president Catherine Tornel and Autonomous Pension Protection Fund president Enrique Marshall.
Valdés linked the discussion to the government’s MK4 capital market reform programme, arguing that financial literacy was essential to encouraging household saving and investment. “Financial education is the capital market. In fact, it is the foundation of the capital market,” he said.
The remarks add a financial education perspective to Chile’s ongoing debate over online gambling regulation, with policymakers considering how to address unauthorised operators while strengthening protections for consumers and minors.