Colombia's Ministry of Finance is facing calls to reconsider a proposed 19% value-added tax (VAT) on online gambling deposits, as the country's licensed operators brace for renewed tax uncertainty. The measure, part of the Economic Rescue Law under President Abelardo de la Espriella's administration, is currently awaiting Congressional approval.
Proposed VAT Sparks Industry Concerns
The new fiscal agenda, led by Finance Minister Miguel Gómez Martínez and the Defensores de la Patria party, aims to address Colombia's economic challenges, including the budget deficit, national debt, and funding for healthcare and VAT refunds to low-income households. Article 41 of the draft law would apply the standard 19% VAT to online gambling, calculated from player deposits. This means the tax would be deducted from the funds players deposit, reducing the amount available for wagering, with operators responsible for collecting and remitting the tax.
Revival of a Controversial Policy
The latest proposal echoes measures introduced by former President Gustavo Petro, whose administration imposed a temporary 19% VAT on online gambling deposits in 2025, followed by a 16% consumption tax in March 2026. These taxes were initially implemented as emergency measures to address the Catatumbo crisis and to support record welfare spending. The recurrence of such policies has left the gambling sector facing ongoing fiscal pressure.
Industry Response and Alternative Proposals
Fecoljuegos, the Colombian federation representing gambling operators, is preparing an alternative tax framework. The group wants to differentiate between online and land-based gambling, arguing that their operating costs vary significantly. President Evert Montero has acknowledged the need to support public finances but emphasized that the industry's ability to pay must be realistically assessed. Fecoljuegos has yet to publish its proposed rates but aims to advocate for fair and proportionate taxation that protects the viability of licensed businesses.
The federation also warns that excessive taxation could undermine the competitiveness of regulated operators and potentially drive players toward unregulated alternatives, threatening both legal business sustainability and public healthcare funding derived from gambling revenues. Fecoljuegos plans to engage with the Finance Ministry and Congressional committees to present its case.
Implications for the Industry
The debate highlights a central challenge for policymakers: balancing the need for increased fiscal revenue with the sustainability of the regulated gambling sector. For operators and affiliates, the proposed VAT could mean reduced player engagement and tighter margins. Suppliers and regulators also face uncertainty as the market adjusts to potential new tax burdens. The outcome of ongoing negotiations will be crucial in determining whether Colombia can maintain a healthy, competitive gambling industry while meeting its fiscal objectives.
Key takeaways
- Colombia's government is considering a 19% VAT on online gambling deposits.
- Industry group Fecoljuegos is advocating for a differentiated, proportionate tax approach.
- The proposal revives controversial taxes introduced under the previous administration.
- Operators warn that excessive taxes could boost illegal gambling and threaten legal sector sustainability.