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

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Delivered and operated by ARRISE, a key service provider to the iGaming industry, the new cutting-edge studio in Bogotá has been strategically established to meet the rising demand for localised, premium live casino experiences across Latin America’s expanding regulated iGaming markets. Supported by an investment of over $15 million, the facility is set to create more than 1,500 new jobs in the region. 

The new studio will feature over 100 tables, delivering an expanding selection of Pragmatic Play’s most popular live casino games, including roulette and blackjack, all customised to local preferences and hosted by native Spanish and Portuguese-speaking dealers. The offering will comprise both network and dedicated tables with Smart Studio technology, allowing operators even greater branding and customisation.  

These market-optimised games will also be complemented by localised versions of international fan favourites from Pragmatic Play’s award-winning portfolio, such as Mega Roulette, alongside brand-new game shows in 2026.  

Paul Dever, Chief Executive Officer at ARRISE, said: “We are very proud to unveil this new studio – a cutting-edge facility that goes far beyond premium live casino content. With localised games, native-speaking dealers, flexible branding options, and full regulatory alignment, it stands as a clear example of our commitment to helping operators deliver truly authentic, player-centric live casino experiences across Latin America.” 

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Irina Cornides, Chief Operating Officer at Pragmatic Play, said: “This new live casino studio in Colombia represents a major milestone in our native content expansion strategy across Latin America. We’ve long recognised the immense potential of the region and remain committed to delivering premium, localised experiences tailored to the needs of each market. By working closely with our trusted operator partners, we aim not only to support their growth with best-in-class content, but also to continue expanding our presence and forging new, impactful relationships throughout LATAM.

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The Colombian government anticipates that this new initiative will contribute over COP 485 billion (approximately $125 million) to public healthcare funds over the next five years, while also invigorating the country’s gambling sector.

Keno, a popular draw-based game gaining international momentum, will soon be accessible across all 32 Colombian departments. According to research cited by Coljuegos, total sales could surpass COP 2.3 trillion (around $587 million) within five years. The game’s blockchain-enabled ticketing system aims to enhance transparency, improve traceability, and reduce the risk of fraud, marking a significant step toward modernizing the industry.

Players will select 10 numbers from a pool of 1 to 80, with the results determined by 20 randomly drawn balls generated independently by a Random Number Generator. Winnings will depend on how many numbers a player matches, with payout structures varying according to the initial wager. Bets will range from COP 1,000 ($0.26) to COP 20,000 ($5.10), with the maximum prize reaching COP 1.68 billion ($428,500). To maximize engagement, daily draws will occur at intervals of 6 to 10 minutes, resulting in between 144 and 240 rounds each day. Results will be publicly announced via digital channels such as YouTube and official websites. Participants will have the option to play at physical terminals or through authorized online platforms, with Coljuegos aiming to establish more than 16,000 sales points nationwide.

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Coljuegos President Marco Emilio Hincapié emphasized that the licensing process was transparent and competitive, involving multiple bidders. He highlighted that this move represents a pivotal step toward innovation and modernization within Colombia’s gaming landscape, encouraging a shift from black market operations to regulated offerings. The operators granted licenses will benefit from a four-month preparatory period to establish infrastructure and ensure compliance with security and technical standards, with the official launch expected in January 2026. This initiative underscores Coljuegos’ commitment to balancing effective oversight with the need for innovation, reinforcing the sector’s role as a vital pillar of the national economy.

The introduction of Keno coincides with a period of heightened regulatory scrutiny of Colombia’s online betting environment. Recently, Coljuegos ordered internet service providers to block access to Polymarket, an online prediction market platform, citing concerns over unregulated political betting and cryptocurrency-based wagering. The authority has reiterated that all gambling activities must adhere to established regulatory frameworks, underscoring its determination to uphold the integrity of Colombia’s gaming industry. Colombia Blockchain Keno

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Finance Minister Germán Ávila emphasized the importance of this reform, describing it as an essential step toward closing the gaps in Colombia’s public finances. The proposed measures are designed not only to increase revenue—projected to generate between $19.6 billion and $25.4 billion (roughly €18.3 billion to €23.7 billion)—but also to support the nation’s broader economic stability, contingent on parliamentary approval and the country’s economic performance.

A key element of the upcoming reforms involves a thorough review of Colombia’s tax policies, with particular attention to the Value Added Tax (VAT) structure. The package will also consider duties related to carbon emissions, online gambling, and fuel consumption. These measures are part of President Gustavo Petro’s wider strategy to reduce the fiscal deficit while simultaneously funding regional stability and social welfare initiatives.

Among the most contentious issues is the VAT applied to online gambling deposits. The Finance Ministry reaffirmed its stance on the 19% VAT levy introduced earlier this year under Decree 175 of 2025. Initially implemented as an emergency measure to support humanitarian relief and security efforts in the conflict-torn region of Catatumbo, this tax was introduced abruptly across all licensed online gambling and sports betting platforms. It was designed as a “temporary measure” set to expire at the end of 2025, alongside a 1% levy on coal and gas sales and a stamp duty on large securities transactions. Collectively, these measures form part of President Petro’s ambitious social budget of approximately COL$523 trillion (€120 billion).

Despite its temporary designation, the VAT on gambling has sparked considerable debate. Colombia’s Attorney General, Gregorio Eljach, has publicly called for its retention. He defended the measure’s legality, stating that it is “proportional to the emergency” and aligns with constitutional principles. Eljach further urged the Constitutional Court to uphold the tax, arguing that it provides a crucial revenue stream for regions affected by armed conflict.

“The measures adopted in Decree 175 do not discriminate and are proportional to the emergency,” Eljach explained. “They are vital to safeguarding fundamental rights and supporting public order efforts.”

However, the industry’s response has been increasingly critical. According to Fecoljuegos, the national trade body representing licensed operators, the introduction of the deposit VAT resulted in a sharp 30% decline in gross gaming revenue (GGR) during the first month after its implementation. Industry stakeholders warn that this tax has driven many players to offshore and unlicensed platforms that do not comply with the levy. Fecoljuegos’ President, Evert Montero Cárdenas, expressed concern that ongoing application of the VAT could harm one of Latin America’s most successful regulated gambling markets. “Players are actively avoiding the tax by shifting to unlicensed platforms. Operators have tried to absorb costs and offer bonuses, but the downturn is stark,” he stated.

In response, Fecoljuegos has indicated that its members are open to proposing alternative measures that would support the government without imposing heavy taxes on customer deposits. Meanwhile, international companies operating in Colombia, such as Stockholm-listed betting technology firm Kambi, have highlighted the challenges posed by taxing deposits rather than net revenue. Kambi noted that this approach has created “significant headwinds” and negatively impacted operating volumes, illustrating the broader difficulties faced by the industry.

Beyond gambling, the Ministry of Finance is likely to focus on taxation related to energy and polluting industries in its upcoming proposal. Deputy Minister Carlos Emilio Betancourt revealed that duties on activities such as pesticide use, vaping products, and industrial emissions are under review. These environmental taxes are seen as dual-purpose tools—both to generate revenue and to incentivize sustainable behavioral changes in line with Colombia’s long-term environmental goals. Colombia Gambling Tax

Betancourt also highlighted that up to COL$135 trillion in annual tax expenditures are being scrutinized, particularly exemptions related to VAT, which account for around 65% of that total. The government is considering revising the VAT system to expand the tax base while minimizing impacts on low-income populations, potentially by adjusting reduced rates on essential goods and reassessing exemptions in education and healthcare.

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Despite assurances from the government that these proposals will not threaten market stability or fundamental rights, the VAT on gambling deposits has become a symbol of rising political tension within President Petro’s coalition. Critics within his own ranks question the long-term sustainability of the tax, warning it could stifle digital entrepreneurship and push legitimate operators into financial jeopardy.

Ultimately, the fate of the gambling VAT will likely rest with President Petro himself, as he navigates an increasingly divided political landscape. Internal disagreements over fiscal priorities, cabinet appointments, and the delicate balance between social spending and economic competitiveness have cast uncertainty over the government’s legislative trajectory for 2025.

The Ministry of Finance has assured that the full text of the new Tax Budget Proposal will be made available before the end of July. Congressional debates are expected to kick off in the latter half of the year, making the coming months critical for Colombia’s regulated industries, including gambling, as they await clarity on the long-term fiscal environment under Petro’s leadership. Colombia Gambling Tax

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Effective since February 21, 2025, and set to expire on December 31, the Colombia online gambling VAT targets every deposit made to licensed online gambling and sports betting platforms, including those using cryptocurrencies. Paired with a 1% tax on coal and gas sales and a 1% stamp duty on securities deals, the VAT supports a COL$523 trillion welfare-focused budget. The Finance Ministry is already considering making this “temporary” tax permanent, signaling long-term fiscal plans.

The Attorney General’s Office staunchly defends the VAT, arguing its legality and necessity. “The measures in Decree 175 are proportional and non-discriminatory,” said Gregorio Eljach, President of the Attorney General’s Office. “They’re critical for funding public order and humanitarian efforts.” Eljach has urged the Constitutional Court to uphold the tax, emphasizing its role in stabilizing violence-plagued regions.

The gambling industry, however, is sounding the alarm. Fecoljuegos, Colombia’s national trade group, reports a 30% drop in online gambling gross gaming revenue (GGR) within the first month of the Colombia online gambling VAT. Players are flocking to unregulated offshore platforms to avoid the tax. “The Colombia online gambling VAT is pushing players to unlicensed sites,” said Evert Montero Cárdenas, President of Fecoljuegos. “Operators are struggling to absorb costs despite offering bonuses.”

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The tax’s structure—levied on deposits rather than net revenues—is particularly damaging. Kambi, a leading Stockholm-listed sportsbook provider, noted a “significant squeeze” in Colombia. “The 19% Colombia online gambling VAT directly suppresses betting volumes,” Kambi stated, highlighting its negative impact on performance despite the company’s strong market position.

Trade groups like Asojuegos warn that the tax is eroding South America’s robust regulated market. The tax incentivizes lower return-to-player (RTP) rates, potentially pushing licensed operators below the 78% compliance threshold and into legal trouble. The shift to unregulated platforms further undermines the market’s integrity, threatening one of Colombia’s thriving digital sectors.

With opposition mounting, even within Petro’s coalition, the VAT faces an uncertain future. The government must balance its fiscal needs with the risk of crippling a key industry. Without a rethink, the tax could drive more players to the black market, undermining Colombia’s regulated gambling framework.

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This collaboration is described as Colombia’s first live TV betting experience, enabling viewers to interact with the game in a new way. During matches, viewers can access an on-screen interactive overlay where they can view odds, manage their BetPlay accounts, and place bets without interrupting the broadcast. The feature was first launched during recent Liga BetPlay Dimayor matches and is accessible through both DirecTV’s linear television service and streaming platforms.

Paola Echeverri, a member of BetPlay’s board, expressed optimism about the future of this initiative, stating, “A year from now, this is going to be a lot bigger, and it’s going to be a lot more entertaining and a lot more fun than we’re seeing right now.” Early data from the initial six games indicates promising user engagement, with 14.5% of viewers clicking into the betting interface, 6.5% browsing available markets, and 37.5% showing intent to place a bet by linking their accounts. Interestingly, even small bets contributed to increased engagement, boosting average viewer watch time from 10 to 21 minutes.

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It’s noteworthy that Tappp previously tested its single-screen sports betting technology during the 2022 Major League Rugby season in the United States, allowing fans to place wagers directly through live broadcasts. The development of this Colombia-specific product took over 18 months, following the acceptance of Tappp’s concept by DirecTV in January 2024. A dedicated team of 60 engineers worked for nine months to bring this innovative project to life, with plans to extend this technology to other sports and markets in the future. Live TV Sports Betting Colombia

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Recently reported by Infobae, one of the country’s leading news outlets, García is part of an inquiry that includes other notable social media figures such as La Liendra, Epa Colombia, and Yeferson Cossio. Each of these personalities is accused of endorsing gambling sites that operate without proper legal permissions.

This scrutiny is not new for Garcia; in 2024, the Colombian government requested the blocking of her social media profile, among 288 others, in an effort coordinated by Coljuegos and backed by the National Police. The goal was to mitigate the risk posed by influencers allegedly directing users to these unauthorized betting sites.

Coljuegos has stated that the promotion of gambling platforms lacking legal approval could lead to significant financial repercussions. Garcia’s potential fines remain undetermined, but other influencers have already faced steep penalties, with Cossio being fined COP 813 million (approximately $200,000) for misleading advertising regarding quick financial gains from an online course.

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The Superintendence of Industry and Commerce has articulated concerns about how these promotions can mislead consumers, creating unrealistic expectations of rapid financial success, which violate consumer protection standards.

While Karina Garcia’s case has yet to reach a conclusion, her involvement in the ongoing reality show “La Casa de los Famosos” could further complicate her legal situation. Stakeholders and viewers alike are now watching to see how this case unfolds in the coming months. Karina Garcia Betting

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The tax rate is set at 19% of player deposits and is scheduled to take effect on Friday, 21 February. This will encompass payments made via cash, bank transfers, or cryptocurrencies, despite the latter not being accepted as a currency for deposits in Colombia.

The decree simplifies the calculation process, applying a formula to the deposit amount which is then divided by 1.19. For example, if a player deposits $100, around $16 would be taken as VAT, leaving approximately $84 available for betting.

Operators will be responsible for filing and paying the VAT, with non-compliance potentially resulting in prison sentences ranging from 48 to 108 months, in addition to administrative sanctions.

Moreover, the decree is designed to bolster the efforts of Coljuegos, the gambling regulator in Colombia. Under this decree, Coljuegos will have the authority to request that internet service providers block illegal sites that “serve the exploitation, operation, sale, payment, advertising or marketing of unauthorized games of luck and chance.”

However, despite the Colombian government’s attempts to clarify the VAT situation, several concerns remain that could frustrate the industry. For instance, Decree No 0175 does not provide a transition period for operators to adapt to the new tax.

Operators must first modify their gaming systems to collect the tax, which requires recertification. Failure to obtain recertification could violate the country’s gambling laws. Local lawyer Juan Camilo Carrasco, a partner at Bogotá law firm Asensi Advogados, indicated to iGB ahead of Decree No 0175’s publication that it was critical for operators to have sufficient time to modify and recertify their systems. “It’s kind of like pushing the operators into the fence,” Carrasco explained to iGB. “You need to collect these taxes, but you [don’t have the capability]. But if you don’t pay taxes, then you commit a crime. If you start collecting taxes after amending the system without the approval of the regulator, then you’re breaching the law.”

Carrasco expressed skepticism about whether the tax will only be in place until December, noting the potential for it to become permanent through future tax reforms. “We know that regarding taxes nothing is more permanent than something that comes in temporarily,” Carrasco continued.

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Carrasco pointed out a peculiar aspect of Decree No 0175: it specifically references both local and foreign operators. Foreign operators without a valid license are banned in Colombia, and Carrasco described this reference as “rather unusual.”

The introduction of the VAT on gambling was initially proposed late last year, but earlier attempts to implement it were halted in December. However, under Article 213 of Colombia’s Political Constitution, the government reintroduced it in January on an emergency basis. This article allows the president to declare a “state of internal commotion” if there is a “serious disturbance of public order, which imminently threatens institutional stability, state security, and citizen coexistence.”

Decree No 0175 states that the tax measures have been adopted to cover the expenses of ongoing disturbances in the Catatumbo region of Colombia, where violence between rebel groups has led to the displacement of an estimated 30,000 people. The government claims that the situation necessitates resources “not foreseen” in the general budget to “ward off the disturbance and prevent the extension of its effects.” Colombia Gambling tax

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