Colombia Aims for Permanent Gambling Tax Despite Judicial Challenges
Despite a recent judicial setback, President Gustavo Petro of Colombia remains committed to establishing a permanent 19% tax on gambling activities. This move is part of his broader effort to overhaul Colombia’s fiscal policies.
Initially, the government introduced a temporary 19% VAT on online gambling deposits as a measure to stimulate the nation’s economy. The tax was slated to expire on December 31, but Finance Minister Germán Ávila recently disclosed that the government plans to incorporate this tax into the 2026 budget proposal permanently, in the lead-up to the upcoming general elections on May 31.
This development coincides with a ruling from Colombia’s Constitutional Court, which ordered a suspension of a decree that sought to implement the VAT on both domestic and international gambling operators. The decree was part of Petro’s broader strategy to fund the 2026 budget amid economic challenges.
However, for now, the wider economic reforms proposed by Petro are awaiting review regarding their ‘constitutional validity’.
The imposition of VAT on the gambling sector has faced significant opposition, with critics labeling it a “counterproductive” policy that has actually led to a decline in tax revenues. For instance, in July 2025, trade association Coljuegos reported that revenue from gambling operators was just 23.1 billion pesos (£4.7 million), down sharply from 43.3 billion pesos (£8.9 million) in the same month last year—a decrease of 46.6%.
Evert Montero Cárdenas, President of Coljuegos, commented: “It’s an unsustainable burden from a financial standpoint. Operators have been forced to grant bonuses to absorb the VAT impact and avoid passing it on to users.”
In November, Spanish gaming group Codere announced it would halt investments in Colombia unless the government reversed its tax policies, signaling growing unease amongst industry players.
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Public opinion remains divided as Colombia approaches the elections. Petro faces internal competition within his own Pacto Histórico party, as well as from centrist Dignity and conservative candidate Abelardo de la Espriella—often dubbed ‘Colombia’s Bolsonaro’.
Even if Petro manages to secure legislation for a permanent VAT increase before the vote, there remains hope among operators that a change in leadership could reverse the policy.
Oscar Iglesias, Codere’s outgoing CFO, noted in November: “It’s unclear what direction those elections will go. Even if [the tax] gets legislated, more centrist or right-leaning parties could come into power and unwind policies that have not been effective in generating additional tax revenue for the government.” Colombia president gambling tax
