Colombia shifts online gambling VAT from deposits to gross gaming revenue
Colombia's government has restructured how it taxes online gambling, shifting the 19% VAT from player deposits to gross gaming...
Online gambling became legal in 2016 through the eGaming Act, making Colombia the first Latin American country with comprehensive iGaming regulation. Coljuegos oversees licensing and enforcement.
Only 16 operators currently hold licenses Operators face 15-17% GGR tax (reduced to 15% with 83% RTP minimum). License fees are steep at 811x Colombia’s minimum wage.
Major challenge: illegal operators dominate an estimated 83% of the total market. Coljuegos blocked over 10,000 illegal websites in early 2025 and pursues 35 administrative cases against influencers promoting unlicensed sites.
Tax controversy: Constitutional Court suspended proposed 19% VAT on deposits (January 2026) after deposit-based VAT caused 46.6% drop in monthly operator tax revenue. Final court ruling pending.
Follow Constitutional Court VAT ruling, illegal market enforcement, tax policy changes, and licensing developments as market faces consolidation pressure.
Colombia's government has restructured how it taxes online gambling, shifting the 19% VAT from player deposits to gross gaming...
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