The Colombian government has imposed a temporary tax increase on iGaming, introducing a 19% value-added tax (VAT) for 90 days.
The taxation is part of a fiscal strategy under President Gustavo Petro’s administration and is expected to raise approximately 519 billion pesos, impacting digital betting platforms, especially those focused on sports betting and online casinos.
However, industry experts warn about potential negative consequences. The higher VAT will make illegal platforms more attractive, while licensed operators may transfer costs to consumers, possibly reducing participation. Critics argue that excessive taxation could slow investment and innovation in the market, threatening its sustainability.
Gambling taxation to combat violence in Colombia
Beyond economic concerns, the government defends the tax as vital for addressing growing violence in Catatumbo, where clashes between armed groups have displaced up to 20,000 people. The conflict has led to over 100 deaths. While the Petro administration insists these tax hikes are necessary, concerns persist about their broader impact on the economy and legal gaming industry.
FAQs
Is gambling legal in Colombia?
Gambling in Colombia is legal and regulated by Coljuegos.
What is the legal gambling age in Colombia?
The legal gambling age in Colombia is 18.
