The Colombian Federation of Business Operators of Games of Chance (Fecoljuegos) has voiced concerns over the continuation of a 19% tax on deposits made by users on online gaming websites. The federation argues that taxing deposits rather than bets or net revenue creates structural distortions and may drive players toward the informal market.
Tax Applied Before Betting
Evert Montero, president of Fecoljuegos, explained that the tax is charged even if deposited funds are never wagered or are withdrawn before betting. “It is absurd to charge a tax before the act of betting even exists,” he said. This approach artificially inflates financial ratios since circulating credits do not reflect actual revenue.
Risk of Migration to Illegal Platforms
Fecoljuegos highlighted that players face a 19% deduction even before betting, incentivizing them to use illegal operators where no tax applies. Regulatory uncertainty is also affecting business confidence, with some operators reconsidering their presence in Colombia. One company has already relocated operations to Argentina due to market conditions.
Calls for Sustainable, Revenue-Based Taxation
The federation has proposed a permanent tax model to the Ministry of Finance based on actual operator income rather than player deposits. Montero emphasized that the regulated sector contributes 15% of its income to public health, and a revenue-based system would secure stable public funds while protecting formal operators.
Policy Debate Continues
The Economic Committee of the Senate recently rejected a proposed reform that would have raised VAT on online sports betting to 19%, a measure projected to generate USD 4.255 billion for the 2026 budget. Finance Minister Germán Ávila criticized the outcome, warning of potential fiscal imbalance.
Colombia’s regulated gaming industry now faces a critical juncture, balancing taxation, regulatory clarity, and competition from illegal platforms while seeking sustainable growth and stable public contributions.
