Sector strongly rejects new online gaming tax in Colombia
The Colombian Government's decision to apply a 19 percent tax on deposits in online gaming platforms has sparked strong controversy in the regulated industry. The levy, introduced through an emergency economic decree, is questioned by operators and sector associations, who warn of adverse effects on the legal market and a direct strengthening of the illegal offer.
The Colombian Federation of Luck and Chance Game Entrepreneurs (Fecoljuegos) argues that the tax design has a structural flaw, as it taxes players' deposits instead of the actual betting activity or the operators' effective revenues. According to the entity, this methodology ignores the operational functioning of online gaming and distorts the tax base.
Fecoljuegos president, Evert Montero, explained that the tax is applied even before a concrete bet exists. “A tax is being charged without knowing if that money will actually be played, how many times it will be reused, or if it will ultimately be withdrawn by the user,” he said. For the leader, this logic breaks with any reasonable technical criterion of taxation.
One of the central points of criticism is the concept of “replay,” that is, the balances that remain in players' accounts and can be used multiple times without constituting real income for the platform. By applying the tax in advance, the taxed amount is artificially multiplied, disproportionately affecting authorized operators.
The federation warns that the impact on competitiveness is immediate. With a 19 percent surcharge applied from the start, the player has less money available to bet, while in the illegal market there is no withholding or tax burden. “The message to the user is clear: legal gaming becomes more expensive and illegal gaming becomes more attractive,” Montero stated, describing the measure as a direct incentive to informality.
Fecoljuegos reported that it submitted technical proposals to the Ministry of Finance, the DIAN, and the DANE, suggesting that taxation be based on the operator’s net revenues, once prizes and bonuses paid to players are deducted. According to the entity, this scheme would allow maintaining revenue collection without risking the sustainability of the formal market.
The sector also recalled that luck and chance gaming in Colombia operates under a state monopoly regime, in which licensed operators already pay 15 percent of their revenues in taxes, funds that are directly allocated to financing the health system. In this context, they consider that the new tax introduces an additional burden without a comprehensive evaluation of its impact.
The concern is not only theoretical. Montero warned that the new fiscal framework is already influencing business decisions, and that at least one international company would have relocated jobs outside the country amid the uncertainty. “These signals put at risk the continuity of investments, employment, and the future of an industry that has complied with its regulatory and fiscal obligations,” he concluded.
For the sector, the fundamental debate is not whether online gaming should be taxed, but how to do so without weakening the regulated market and without pushing players toward platforms that operate outside any control.
Tags: Colombia, online betting Colombia, Colombia betting taxes