2026 © Invixos. All rights reserved. A product by Jerom Verschoote.
2026 © Invixos. All rights reserved. A product by Jerom Verschoote.
We use tracking cookies to understand how you use our website and to enhance your user experience. Accept to help us improve.
Colombia’s online gambling sector has received a major regulatory reprieve after lawmakers voted against a proposal to permanently impose a 19% value-added tax on online gambling. The decision marks a turning point for operators who have spent most of 2025 navigating reduced margins, declining player activity and growing concerns over black-market displacement following the temporary tax’s introduction earlier this year.
The rejected measure was part of the government’s Financing Law, which aimed to lock in the VAT beyond its original emergency timeframe. With Congress blocking the proposal, the tax is now expected to expire at the end of December, restoring Colombia’s previous tax framework for online gambling.
The Senate’s Fourth Committee voted 9–4 against the Financing Law, effectively ending efforts to make the 19% VAT on online gambling permanent. The bill would have applied the tax to all games of chance offered exclusively online and also proposed raising the capital gains tax on gambling and lottery winnings from 20% to 30%.
The VAT was first introduced in February as a temporary measure to help fund government spending linked to civil unrest in the Catatumbo region. With the bill’s rejection, the levy is expected to lapse on 31 December.
Finance Minister Germán Ávila strongly criticised the vote, calling it “strictly political” and warning that it leaves the government facing a significant fiscal shortfall after Congress had already approved a national budget of COP546.9 trillion.
Industry stakeholders have welcomed the decision as a crucial step toward restoring market balance. Trade body Fecoljuegos previously warned that the VAT was economically unsustainable, arguing it would drive licensed operators out of the market and accelerate illegal gambling activity.
According to the federation, the tax led to a 30% decline in online gross gaming revenue shortly after its introduction, with some operators reporting drops of nearly 50% in deposits and average player spend. Operators attempted to soften the impact through additional bonuses, but many acknowledged the model was not viable long term.
The temporary VAT forced several operators to rethink their Colombian strategies. Codere Online publicly stated that Colombia would no longer feature in its short- to mid-term plans, following earlier comments from its CEO about scaling back activity in the market.
Others remained cautiously optimistic. Rush Street Interactive consistently expressed confidence that the VAT would be scrapped, positioning itself for renewed growth once normal tax conditions return.
Beyond operator economics, the VAT debate highlighted broader regulatory risks. Industry groups warned that higher taxation reduced the competitiveness of licensed platforms, pushing players toward unregulated alternatives. This raised concerns not only about consumer protection but also about long-term tax revenues, particularly given the gambling sector’s contributions to Colombia’s healthcare system.
With the VAT now set to expire, attention will turn to whether the government revisits gambling taxation as part of future fiscal reforms, and how regulators balance revenue generation with market sustainability.
The rejection of the Financing Law signals a regulatory reset at a critical moment for Colombia’s iGaming sector. While challenges remain, the removal of the 19% VAT offers operators a clearer path to stabilisation, investment and channelisation, reinforcing Colombia’s position as one of Latin America’s most important regulated gambling markets.
Sources: iGaming Business, Yogonet
