Legislation

Tax on gambling extended despite disappointing revenues in Colombia

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 will be extended until the end of the year, one of which is the VAT on online gambling. However, revenue from this sector has fallen short of the expectations set by the administration of Gustavo Petro.

According to a report on the 90 days of internal commotion from the National Directorate of Taxes and Customs (Dian), as reported by the newspaper La República, COP 108.933 billion was collected between February and March. Of this total, the tax that the government emphasized for revenue enhancement was the least successful: since the declaration of the state of commotion through March, online games of chance brought in just COP 20.887 billion.

The Ministry of Finance had initially projected that online gambling was expected to collect COP 519 billion.  However, two weeks after the announcement of the commotion, the targets were increased: online games of chance were aimed at generating a cap of COP 1.3 trillion.

All the same Dian indicated in its report that: “These provisions allow us to meet the objectives for public order, guaranteeing the necessary financing, in accordance with the budgetary addition established in Decree 274 of 2025.”

In February the Ministry of Finance decreed three new taxes that 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.

Earlier this month Evert Montero, president of the Colombian Federation of Entrepreneurs in Chance and Gambling (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.