Petro formalizes a new 16% tax on digital betting in Colombia
The Colombian government has taken a drastic measure to strengthen public coffers in the face of the climate and economic crisis currently affecting departments such as Chocó, La Guajira, Antioquia, and Córdoba. Through a new presidential decree, a National Consumption Tax (INC) of 16 percent has been established, directly impacting online gambling activities operated exclusively via the internet. This decision comes at a time of high budgetary tension, after the Congress of the Republic cut 10 trillion pesos from the National General Budget for 2026 and previous attempts to approve financing laws for more than 16 trillion pesos failed.
Gustavo Petro's administration justifies this new tax by pointing to the "high contributory capacity" of the iGaming sector, which has maintained sustained growth in recent years despite macroeconomic fluctuations. According to the Executive, the absence of a national consumption tax for digital platforms created an unfair competitive distortion compared to physical casinos and traditional gaming halls, which already bear considerable tax burdens destined for the public health system. The resources obtained through this new levy will have a specific destination: to finance mitigation works and assistance for those affected by the severe floods impacting various regions of the country.
Technical structure and taxable base of the new tax
Unlike other taxes that levy the initial deposit, the design of this 16 percent INC focuses on the operational performance of the platforms. The regulation establishes that the taxable base will be calculated on gross revenue, known in the industry as GGR. The formula applied to determine the amount payable every two months will be as follows:
GGR = Total bets - Prizes paid
This calculation will include all gaming modalities operated both from Colombia and from abroad that reach the local public. In addition, the taxable base considers any form of money input by the user, ranging from cash and bank transfers to the use of crypto assets. With this structure, the Ministry of Finance seeks to ensure that collection is proportional to the actual profitability of authorized operators and to prevent capital flight in the digital environment.
The legal challenge before the Constitutional Court
The announcement has generated immediate legal debate due to recent precedents. During 2025, the Constitutional Court suspended decrees 1390 and 1474, which attempted to implement similar measures, arguing that the exceptionality requirements demanded by the Constitution to bypass ordinary legislative procedure were not met. However, the current Executive maintains a firm stance: the climate crisis currently facing departments such as Sucre, Bolívar, Cesar, and Magdalena represents a new and distinct exceptional situation from previous ones, which would grant the necessary power to issue decrees with the force of law in tax matters.
The speed with which this tax is implemented will depend on the constitutional review carried out by the high court. Meanwhile, the government has granted special powers to mayors and governors to expedite the use of these resources, complementing the package of measures with interest-free loans and relief for bank debtors in the affected areas. The industry, for its part, cautiously observes how this new operational cost will impact the competitiveness of the regulated Colombian market, which until now was considered one of the most stable in the region.
Tags: Colombia, Colombia gaming tax, National Consumption Tax (INC)