Online gambling revenue down in Colombia by thirty per cent
The Colombian Federation of Businesses for Games of Chance and Luck (Fecoljuegos) has warned that the application of a 19% VAT on deposits on online betting platforms has led to a significant decrease in the funds that the sector transfers to the health system.
According to estimates from the association, in the last month when there was no VAT on online games, online operators contributed over COP 40 billion in exploitation rights. However, between March and June of this year—the first four months with the measure in place—the average monthly contribution was about COP 28 billion, representing an approximate decline of 30%.
This behaviour represents a major setback, given that the subsidized health system received nearly $436 billion pesos from gambling in 2024.
“This drop in revenue is deeply concerning, as the resources we transfer are essential for financing the subsidized health regime. The measure not only affects the sustainability of legal platforms but also reduces the funds reaching millions of Colombians who depend on the system,” stated Evert Montero Cárdenas, president of Fecoljuegos.
Montero pointed out that operators have absorbed much of the VAT impact to avoid passing it on to users and prevent migration to illegal platforms, which has significantly reduced operational margins. “This effort, while necessary to protect the regulated market, cannot be sustained indefinitely. If the model remains as it is, contributions to health will continue to decline, and legal gaming will lose the game,” he added.
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 in Catatumbo. With Decree 0175 of February 14, 2025, a 19% tax VAT on deposits 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 May following the announcement of the conclusion of the 90-day state of internal commotion, the Colombian government clarified that the three taxes implemented to address the economic emergency would be extended until the end of the year.
