The Supreme Council of Colombia, the country's highest administrative court, has suspended crucial advertising restrictions imposed by the local regulator Coljuegos for licensed iGaming operators starting January 2024.
The court has frozen several key measures, including a cap on advertising expenses at 20% of GGR after mandatory contributions to the state, mandatory reporting to the regulator on marketing expenditures, penalties of 1.5% of the concession contract value with termination upon the third violation, a ban on granting concessions to companies with ties to the illegal sector, and prior approval for the sale of shares in operator companies.
This decision was made in the context of a lawsuit seeking the complete annulment of Coljuegos' advertising resolution. The court ruled that such extensive restrictions can only be enacted by parliament, indicating that the regulator had overstepped its authority.
The suspension has come into effect as no appeal was filed within the designated timeframe, according to Sora Lawyers, the attorneys who filed the lawsuit. They believe this ruling is one of the most significant for the Colombian iGaming industry in recent years. The suspension will remain in place until a verdict is reached on the lawsuit, while the other requirements of the resolution continue to apply.