New taxes imposed on online gambling in Colombia
The Ministry of Finance has decreed three new taxes that will be in effect until December 31, 2025, with the aim of financing expenses related to the state of internal commotion in the Catatumbo region.
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.
According to a government press release: “In the case of the tax on sales of online games of chance, the regulation establishes that ‘it will be the cash deposit, understood as the payment in cash or transfers of money or crypto assets made by each betting user to the operator’ of the respective platform.
“It also states that operators of internet games of chance from abroad will be responsible for this obligation, and the tax will be triggered when the bettor ‘has their tax residence, domicile, permanent establishment, or the headquarters of their economic activity in the national territory.’
“Additionally, Decree 0175 empowers Coljuegos to ‘block channels, websites, and means that in any way serve the exploitation, operation, sale, payment, advertising, or marketing’ of unauthorized games of chance”.
In February Colombia’s Minister of Finance, Diego Guevara, announced that, based on the state of emergency decree due to the security crisis in Catatumbo, VAT will be implemented on online gambling.
The Colombian Federation of Entrepreneurs in Games of Chance and Luck (Fecoljuegos) has warned that imposing VAT on online gaming operations will create an imbalance in the contractual equilibrium of concessions for operating online games, directly affecting the sustainability of the sector.
According to the organisation the online gaming sector in Colombia operates under strict regulations established by Coljuegos, which sets the technical, legal, and financial conditions for its operation.
“The current model already operates with limited margins, as nearly 97% of the amount wagered is returned to players as prizes, along with exploitation rights and management expenses, leaving operators with limited net income to cover high operational costs. An additional tax would compromise the viability of authorized companies and, therefore, the revenue allocated to the state,” Fecoljuegos argued.
