Colombia’s Betting Deposit Tax Takes Toll on Operators
The implementation of a 19% tax on online gaming deposits has presented significant hurdles for Colombia's gaming sector as operators experience a significant drop in deposits and revenue.
LISTEN TO THIS ARTICLE:The government introduced the 19% tax in February 2025 through an emergency decree targeting public order concerns in Catatumbo. Initially slated to last 90 days, the measure was later extended to December 2025.
In its recently submitted tax reform proposal, the Ministry of Finance also suggests extending the 19% tax through 2026, aiming to generate about COP 26.3 trillion ($6.7 billion) for the general budget.
However, operators are already feeling the pinch of the new user tax. The Colombian Federation of Gaming Entrepreneurs (Fecoljuegos) reports a 32% decline in the sector's real operating income from March to June 2025 due to the new tax.
The government might not concur with this number, given the differing methodologies used by the industry and the government to calculate revenue. For instance, Coljuegos, Colombia’s gaming regulatory authority, reported 2024 sales as COP 45 trillion, while Fecoljuegos puts the total at COP 2.9 trillion.
In online betting platforms, what is commonly referred to as 'bets' does not directly equate to sales, nor does it represent an expense. Turnover is not considered revenue for the operator, as more than 95 percent is returned to players in the form of prizes.
Related: Stake Counters New Colombian Taxes with Player Cashback Offer
More Business News
Business
Missouri's Sports Betting Market Starting to Attract Attention from Sportsbooks
Aug 08, 2025
Operators Face Financial Strain
To offset the tax burden, operators are offering bonuses that don’t pass VAT cost to users, averting a possible 50% drop in revenue. However, they deem this strategy financially “unsustainable.”
Fecoljuegos believes that its members are already paying too much in taxes, which knock off 67.8% of their revenue, considering both the 52.8% VAT and the 15% exploitation rights fee that funds healthcare services.
The healthcare funding is also being impacted by the new VAT. In 2024, the gaming sector contributed COP 436 trillion to the healthcare system, but after the tax was introduced, monthly transfers dropped by approximately COP 13 trillion, from COP 40 trillion in January 2025 to an average of COP 27 trillion between March and June.
RELATED TOPICS: Business
Latest News
Business
Review this New Post
Leave a Comment
User Comments
Comments for Colombia’s Betting Deposit Tax Takes Toll on Operators