Fecoljuegos: Issues with Colombia's new online gambling tax
Following the issuance of Decree 0240 of 2026 on March 12, the Colombian Government has generated a strong reaction in the iGaming sector by incorporating a 16% consumption tax on bets placed on digital platforms. The Colombian Federation of Gambling Businessmen (Fecoljuegos) warned that this regulation suffers from structural flaws that compromise the legal certainty of the industry. According to the guild, the regulatory design lacks technical knowledge about the real mechanics of the sector, which could lead to a scenario of instability for legal operators.
Legal and Technical Inconsistencies of Decree 0240
Evert Montero, president of Fecoljuegos, pointed out that the decree mixes incompatible financial concepts when defining the taxable event and the tax base. The critical points identified by the guild include:
- The taxable event is defined as the deposit the user makes into their account.
- Simultaneously, the actual income of the operator, calculated as bets minus prizes paid, is set as the tax base.
- There is a direct contradiction with Decree 0241, issued on the same day, which projects 19% income from VAT instead of the 16% consumption tax.
- This regulatory duality suggests that the tax design was poorly conceived and lacks technical rigor.
Furthermore, Fecoljuegos believes that the Government is trying to circumvent the decisions of the Constitutional Court. The court had already provisionally postponed Decree 1390 of 2025, nullifying the previous imposition of VAT on online gambling. For the guild, reintroducing this tax under a new guise is an attempt to find a legal loophole to the provisions of the High Court.
Economic Impact and the Threat of Illegality
The guild clarified that the figures circulating about the volume of online bets are distorted. Although it is mentioned that the market moves COP 45 trillion, Montero explained that the actual money deposited is approximately COP 7.9 trillion, which is re-wagered up to six times. With a return to player (RTP) of up to 95%, the industry's real income is close to COP 2.7 trillion.
Under this structure, the real profit margin for operators is extremely narrow: 3%
Any sudden financial alteration jeopardizes the sustainability of the activity. Fecoljuegos warned that the lack of competitive guarantees opens the door to illegal betting, which uses payment gateways without effective controls by the State. If the legal industry migrates to clandestinity due to tax strangulation, vital resources for health, employment, and the country's economic revitalization will be lost.
Tags: Colombia, online betting Colombia, Colombia betting taxes