The Colombian government has modified its approach to taxing online gambling, transitioning the 19% value-added tax from player deposits to GGR.
This new taxation policy commenced on January 1st, targeting the actual revenue generated by operators, instead of taxing all funds deposited by players.
Initially implemented in February 2025, the deposit-based 19% VAT was a temporary measure introduced amidst internal unrest. Throughout 2025, this tax structure faced significant criticism as it effectively taxed funds that were repeatedly wagered and often returned to players as winnings, rather than reflecting actual revenue.
Operators voiced strong opposition to the deposit-based tax, with notable criticism from Codere Online, a leading Spanish gambling company.
In November 2025, Codere Online announced plans to cease all further investment in Colombia unless the tax was abolished, citing the measure’s impact on the market’s financial viability. The tax compelled license-holders to absorb the 19% levy while still offering customer bonuses, which strained financial operations.
The negative impact of the tax was evident, as licensed operators and the trade association Fecoljuegos reported a significant decline in industry activity. Key indicators such as GGR, total deposits and player engagement saw a considerable drop. Estimates indicated that the revenue in 2025 fell by as much as 30%.
This policy change is part of a wider emergency economic decree aimed at addressing a fiscal shortfall resulting from the unsuccessful 2025 tax reform. The government is seeking to generate over COP10tn (US$2.65bn) in additional revenue, hoping that this revised taxation method will contribute positively to the national economy.
As the changes take effect, the industry anticipates a more sustainable and equitable fiscal environment.
