SBC News Voice of the Sports Betting Industry
Lucía Gando, Editor of SBC Noticias, reports:President Gustavo Petro has been urged to maintain the controversial VAT on online gambling, despite its negative impact on Colombia’s regulated market, which is rapidly losing both status and appeal.
Colombia’s Attorney General has stated that the government must maintain its 19% VAT on online gambling deposits, despite mounting industry pressure and a surge in black-market activity.
The tax, introduced under Decree 175 of 2025 and signed by President Gustavo Petro, forms part of a broader emergency economic measures aimed at financing humanitarian interventions in Catatumbo, a region grappling with armed conflict.
The VAT charge was introduced alongside a 1% tax on coal and gas sales and a 1% stamp duty on large securities transactions, the VAT on gambling forms part of Petro’s wider attempt to plug fiscal gaps created by a contentious COL$523 trillion welfare-focused budget.
The measure, which came into effect on 21 February and is due to run until 31 December, applies to all customer deposits made to licensed online gambling and sports betting platforms — including those funded via cryptocurrencies.
While framed as a temporary charge, Petro’s Finance Ministry has hinted at making the measure permanent through future tax reforms. In the meantime, the legal validity of the decree has been defended by the country’s top legal office.
“The measures adopted in Decree 175 do not discriminate and are proportional to the emergency,” said Gregorio Eljach, President of the Attorney General’s Office. “They are vital to safeguarding fundamental rights and supporting public order efforts.”
The government argues that the tax is legally sound and does not infringe on constitutional rights. Eljach has called on the Constitutional Court to uphold the levy, citing the urgent need to channel funds into regions destabilised by guerrilla violence.
However, industry figures have warned the move is damaging Colombia’s regulated gambling as one of the most mature in South America. According to Fecoljuegos, the national trade body, online gambling GGR dropped by 30% in the first month of implementation, with players increasingly turning to offshore operators.
“Players are actively avoiding the tax by shifting to unlicensed platforms,” said Evert Montero Cárdenas, President of Fecoljuegos. “Operators have tried to absorb costs and offer bonuses, but the downturn is stark.”
The impact has not been lost on market stakeholders. Stockholm-listed B2B firm Kambi acknowledged a “squeeze in Colombia”. As the markets leading supplier of sportsbook systems, confirmed the tax is creating significant revenue headwinds, warning that the charge on deposits, rather than net revenues, is particularly punitive.
“The 19% VAT on deposits is expected to negatively impact Kambi’s performance in Colombia,” the company said. “The structure directly suppresses volumes, even as we maintain our market-leading position.”
Trade bodies including Asojuegos have warned that the tax undermines the regulated market by incentivising lower return-to-player (RTP) rates, potentially pushing licensed operators below the 78% compliance threshold and into legal risk.
Whether the VAT survives beyond 2025 remains unclear, but with opposition mounting within Petro’s coalition, the government may yet be forced to revise its position — or face long-term damage to one of Colombia’s most successful digital industries.
