New tax hits online betting in Colombia

Colombia’s online gambling sector is experiencing challenges following the implementation of a 19% tax on user deposits. 

According to the Colombian Federation of Gaming Entrepreneurs (Fecoljuegos), this measure has resulted in a 32% drop in the sector’s actual operating revenues between March and June 2025.

The 19% tax was initially introduced in February 2025 as part of an interior emergency decree to address public order situations in Catatumbo. Although the measure had a temporary 90-day validity, the government extended it until the end of the year. 

Additionally, the tax reform proposal presented by the Ministry of Finance contemplates maintaining this tax until 2026 to generate additional resources for the general budget, which is projected at COP 26.3trn ($6.7bn).

There is a discrepancy between government and industry revenue calculations. While Coljuegos reports that 2024 sales reached COP 45 tn, Fecoljuegos maintains that revenues totaled COP 2.9 tn.

Evert Moreno, president of Fecoljuegos, explains: “In online betting platforms, what is commonly referred to as ‘bets’ does not directly equate to sales, nor does it represent an expense. Turnover is not considered revenue for the operator, as more than 95 percent is returned to players in the form of prizes.”

Operators have attempted to mitigate the tax impact through bonuses that avoid transferring VAT costs to users. This strategy prevented a potential 50% revenue drop but represents what they describe as an “unsustainable” financial effort.

According to Fecoljuegos, the effective tax burden reaches approximately 67.8% when combining the VAT (52.8% of real operator income) with the 15% exploitation rights fee that funds the healthcare system.

Good to know: In April, it was reported that gambling funded COP 2.4trn ($610m) for Colombia’s health system in two years, 33% of total contributions since 2012

The impact on healthcare funding is especially relevant. In 2024, the sector contributed COP 436trn to the healthcare system. However, following the implementation of the new VAT, monthly transfers dropped from around COP 40t in January 2025 to an average of COP 27trn between March and June, a decrease of approximately COP 13trn.

Coljuegos has also launched a public consultation on a draft resolution setting technical requirements for systematized raffle operations, open for feedback until August 20, 2025. 

Carlos Mendez

Writer

Odds tell a story long before the result does. When bettors learn to read that story properly, betting becomes a matter of discipline and value rather than emotion or guesswork.

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