The Colombian gaming regulator, Coljuegos, has initiated a significant regulatory shift by releasing a draft resolution aimed at controlling online gaming bonuses. This move comes on the heels of introducing a Value Added Tax (VAT) on online gaming transactions, effective from February 22, 2025. Since the VAT’s implementation, there has been a noticeable change in how operators manage bonuses, with a marked increase in bonus payments used to offset the VAT cost for players.
The introduction of VAT on online gaming in Colombia has had a profound impact on the industry. Operators started reimbursing players for the VAT through bonuses, leading to a substantial increase in bonus payments. Prior to the VAT, bonuses accounted for only 0.3% of total bets, but this percentage soared to 3.4% after VAT was introduced. While this development offers short-term benefits for players, it has also created financial imbalances in the regulated market that need addressing.
The regulator, Coljuegos, has observed that this increased reliance on bonuses has adversely impacted Gross Gaming Revenue (GGR), a crucial factor in calculating exploitation rights, which are vital for public revenue. The health sector, in particular, has seen a shortfall in expected contributions for 2025 due to these distortions.
Coljuegos expressed concern that the unchecked distribution of bonuses could jeopardize the financial stability of the national gaming system, especially the public health funds that depend on gambling revenues. The draft resolution aims to impose balanced controls to ensure a fair distribution of incentives between operators and the public interest. Without regulation, Coljuegos warned, bonus-related revenues could lead to opaque calculations of taxable income and create a market imbalance favoring more aggressive operators.
The proposed framework in the draft resolution introduces three key limits on the use of bonuses, depending on VAT applicability:
1. For operations subject to VAT: The total bonuses given in exchange for gameplay as credits cannot exceed 1.6% of the platform’s gross revenue (total bets) for the same month.
2. For VAT-exempt operations: The total bonuses an operator can distribute in a calendar month should not surpass the average monthly exploitation rights paid over the last 12 months, inclusive of any fixed exploitation fee.
3. For new operators with VAT-exempt agreements: In their first 12 months, the total bonus cap will be set at one-twelfth of the permanent exploitation rights available for the initial year. From the 13th month, the standard rule for VAT-exempt operations will apply.
Coljuegos has opened a public consultation period for this draft resolution, inviting operators, industry stakeholders, and the general public to review and comment on the proposal until November 4, 2025. This engagement underscores Coljuegos’ dedication to co-regulation, ensuring that Colombia’s iGaming industry aligns economic integrity with fair gaming principles.
If adopted, the resolution aims to stabilize revenue streams, improve taxation transparency, and safeguard the public health system, which relies on contributions from gaming revenues. The move aligns with a broader trend in Latin America towards stricter regulation of online gaming bonuses and promotions.
Colombia, recognized as a regional leader in regulated iGaming, continues to navigate the delicate balance between innovation and consumer appeal, while ensuring fiscal responsibility and transparency. The actions by Coljuegos reflect its commitment to ensuring that the growth of online gaming aligns with social welfare objectives, legal requirements, and secures a sustainable future for both operators and the Colombian state.
This regulatory initiative highlights the ongoing evolution of the gaming industry in Colombia, where maintaining a responsible and transparent market takes precedence. While some industry players argue that bonuses are essential for attracting and retaining customers in a competitive market, others contend that unchecked bonuses can lead to unsustainable practices and market instability.
By engaging in this regulatory process, Coljuegos aims to address these concerns and create a balanced market that protects both operators and consumers. The dialogue between regulators and industry stakeholders will be crucial in shaping a robust regulatory framework that supports long-term growth and sustainability.
As the public comment period progresses, industry observers will be keenly watching the responses and adjustments made to the draft resolution. The outcome of this process will likely have significant implications for the future of online gaming in Colombia and potentially set a precedent for other nations in the region seeking to regulate their iGaming markets effectively.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
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