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Coolbet sued by Chilean casino over online betting activity

Coolbet in legal trouble in Chile

Chilean casino operator Dreams has condemned Coolbet for allegedly conducting illegal gambling operations in the nation. This accusation is thought to be triggered by a highly lucrative sponsorship deal between the Chilean soccer team Colo-Colo and Coolbet, which was finalized last week.

On Tuesday, Dreams initiated legal action against the gaming platform on the grounds that it unlawfully operates gambling activities. The Chilean Prosecutor’s Office has started collecting data concerning the National Association of Pro Soccer (ANFP) and six clubs.

The conflict between conventional casinos and online gambling providers has been going on for the past three months. During the COVID-19 outbreak, online gambling grew quickly, and as a result, many soccer clubs have since taken on betting brands as major sponsors.

In January, Betsson signed on as a sponsor for Colo-Colo. Now, the most renowned soccer team in Chile also has a US$3 million yearly contract with Coolbet. The European betting business has taken the place of Pilsen del Sur as the team’s main shirt sponsor.

In March, Dreams casino accused Betsson of engaging in unlawful gambling exploitation and filed a lawsuit against the operator. The casino said that the illicit use of lotteries and other betting violates multiple sections of the country’s legal system. In addition, it stated that it does not have permission to conduct business in the nation from the Superintendence of Gaming Casinos (SCJ).

Gambling is illegal in Chile under current legislation, with a few exceptions that are explicitly allowed by law. These include the state-operated Chilean Charity Drive, the Concepción Lottery, horse racing, and conventional land-based casinos. The general assumption in Chile is that online gambling is prohibited, as the nation’s legislation does not specify any other forms of gambling.

The Superintendency of Casinos has lodged 22 charges against various gambling websites since the beginning of 2019. Reports have been lodged against Casinoenchile, Juegaenl’nea, Pokerenchile, Rivalo, LeoVegas, Casinoonlineenchile, Rojabet, Betway, Betfair, and a number of other online gambling sites, Coolbet inclusive.

In the case Dreams has filed, it notes that Coolbet is directly targeting the Chilean industry with its sports betting and online casino services. It asserts that the platform is acting illegally by functioning outside of the law. As supporting proof, it provided a screenshot from the Coolbet website, which said that the site processes transactions in Chilean pesos for both withdrawals and deposits. The Dreams legal team also made hints that this may be a potential method of laundering money.

No information about Coolbet’s representatives in Chile is provided on its website. In addition to that, it does not mention the business’s address or the legal entity that it utilizes in order to conduct business in the nation. Dreams notes that in order for the company to have been in a position to lawfully execute the deals, it must have had some form of legal footing in the country.

It was requested that Alfredo Stohwing, the president of Colo-Colo, come before the court in order to offer background information to verify the sponsorship. This is where Ñuñoa Prosecutor’s Office began investigating Betsson’s earlier allegation.

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