Colombian operators welcome new VAT for online gaming
The Government of Colombia approved a key modification in the way the Value Added Tax (VAT) is applied to online betting, a decision that was well received by the industry after months of strong criticism. Starting January 1, the 19 percent VAT will be calculated on the gross gaming revenue (GGR) and not on the players' deposits, correcting a scheme that had generated a strong negative impact on the regulated sector.
The measure was formalized through an emergency fiscal decree signed by the Minister of Finance, Germán Ávila, and redefines the taxable base as the difference between bets placed and prizes paid to players. According to the official, the new model seeks to “restore fiscal balance without suffocating productive sectors,” maintaining the 19 percent rate but aligning taxation with the economic reality of the activity.
The change comes after the Executive, led by Gustavo Petro, initially promoted a VAT applied to deposits, a measure announced as temporary to finance programs in the Catatumbo region, but which was later incorporated permanently into the 2026 Budget. That decision generated a strong reaction from the sector, with operators halting investments and expansion plans in the country.
The impact was visible in revenue collection. Data from the regulator Coljuegos showed that the sector’s monthly contributions fell by 46.6 percent year-on-year, dropping from COP 43.3 billion in July 2024 to COP 23.1 billion in 2025, a clear sign of the contraction caused by the previous scheme.
The response from the industry was immediate. The federation Fecoljuegos described the correction as “a first step to restore rationality” to the gaming tax system. Its president, Evert Montero Cárdenas, stated that the GGR-based model allows abandoning “a state of manifest inefficiency” and recovering a minimum margin of operational viability, although he warned that this is still only a starting point.
According to sector estimates, the total tax burden for Colombian operators currently hovers around 34 percent of GGR, considering VAT and the 15 percent concession fee, excluding other local taxes. For Montero Cárdenas, while the adjustment avoids an immediate collapse, Colombia still needs a broader reform that encourages investment, innovation, and the formalization of the regulated market.
Tags: Colombia, online betting Colombia, Colombia betting VAT