New taxes could put Colombian gaming industry at risk says Fecoljuegos
The Colombian Federation of Entrepreneurs in Games of Chance and Luck (Fecoljuegos) has raised concerns regarding Decree 0572, which requires advance collection of withholding tax for 2026, starting from May 29, 2025. This new requirement adds to the already existing 19% VAT on online games that was introduced earlier in 2025 to address a public order emergency in Catatumbo. The VAT will remain in effect until the end of 2025 even though the crisis has been resolved.
According to the organization’s statement, Decree 0572 “adds to a series of disproportionate fiscal decisions that are suffocating a key industry for the country’s economy and public health.”
The organization pointed out that “each new tax burden excessively increases operational costs, reduces the sector’s capacity to generate formal employment, limits investment in innovation, and weakens competitiveness in the face of the growth of the illegal market, which is favoured by the lack of equitable conditions.”
Fecoljuegos argued that the measures were “pushing the legal gaming industry to the brink of collapse. An eventual collapse would mean the disappearance of formal companies, the loss of thousands of direct and indirect jobs, and a drastic reduction in the resources that, through exploitation rights, are allocated to financing the health of Colombians.”
Fecoljuegos also urged the National Government to urgently review these fiscal policies and “open a space for serious, technical, and constructive dialogue with the sector. It is imperative to build a joint roadmap that ensures the sustainability of an industry that significantly contributes to the economic development and social welfare of the country.”
In February the Ministry of Finance decreed three new taxes would be in effect until December 31, 2025, with the aim of financing expenses related to the emergency. The new fiscal measures affect online gambling, the export of oil and coal, and national stamp tax. With Decree 0175 of February 14, 2025, a 19% tax was established on online games of chance, a 1% levy on national sales and exports of oil and coal, and a 1% tax on the stamp duty for transactions exceeding $300 million.
In April Evert Montero, president of Fecoljuegos, told local media outlet Portafolio that following the implementation of the VAT on online gambling the sector had experienced a 30 per cent decrease in gross gambling revenue, indicating a fall in deposits and a shift in user behaviour.
