In a decisive move, Codere Online has announced a halt on all new investment activities in Colombia, a decision strongly influenced by the recent permanence of a 19 percent VAT on online gaming deposits imposed by the Colombian government. This action marks a significant pivot for the company, which previously had identified Colombia as a critical growth market. The strategic shift was clarified in the company’s latest quarterly report where Codere Online’s Executive Vice President, Moshe Edree, underscored that the burden of the tax rendered long-term investments in Colombia unfeasible despite consistently stable player deposits.
Colombia, which pioneered regulated online gambling in Latin America back in 2016, had long been hailed for its promising market conditions, characterized by clear regulatory frameworks and steady demand. However, the imposition of the VAT has begun to test this reputation. Initially introduced as an emergency measure to support the crisis-stricken Catatumbo region, the tax was expected to be temporary. Yet, it later became a permanent fixture as confirmed by the Ministry of Finance in September.
Operators in the sector have been squeezed by this development. While gaming deposits have not decreased, the profit margins have been adversely affected, putting immense pressure on businesses to maintain their competitive edge. Evert Montero Cárdenas, president of the national trade association Fecoljuegos, voiced that the VAT constitutes an “unsustainable burden” for licensed operators. To mitigate these costs, operators have resorted to offering bonuses to players, further cutting into their revenues.
Data from Coljuegos, the national gambling regulator, paints a concerning picture. Contributions from the gambling industry to Colombia’s healthcare system saw a dramatic 46.6 percent drop in July compared to the previous year. Specifically, payments plummeted from COP 43.3bn in July 2024 to COP 23.1bn in July 2025, highlighting the tax’s profound impact on the industry’s fiscal health. These figures are alarming for a market once heralded as a model for others in the region.
Codere Online has felt the weight of these economic shifts directly. The company reported a decrease of nearly one-third in net gaming revenue from its “other markets” category, which encompasses Colombia. The lion’s share of this decline, amounting to €1.4m, was attributed to Colombia alone, despite the constancy in player deposits. The message from the company was clear: without a reassessment of the tax framework, Colombia’s allure as an investment opportunity dims significantly.
Amidst these challenges in Colombia, Codere Online is exploring new horizons. The company announced a leadership change with CFO Óscar Iglesias stepping down, succeeded by Marcus Arildsson. Concurrently, Codere has expanded its online footprint in Europe with the launch of its .it platform in Italy. This move represents the company’s inaugural expansion into the European market outside of Spain, capitalizing on Italy’s newly streamlined licensing system, which promises a more consolidated market environment.
This strategic shift away from Colombia, once a beacon of potential growth, indicates the increasing difficulty faced by operators within the country. As Colombia grapples with the consequences of its fiscal policies on the gaming industry, markets like Italy present new opportunities for Codere Online to cultivate growth within a more favorable regulatory climate.
Despite this migration of focus, the situation in Colombia remains dynamic. While operators like Codere Online reassess their strategies, the Colombian government and regulatory bodies face mounting pressure to evaluate the long-term implications of their tax policies. The sustainability of Colombia’s gaming market, once a regional leader, now teeters on the decisions made by these stakeholders.
In conclusion, the evolution of Colombia’s online gaming market reflects the broader volatility and challenges facing regulated industries in Latin America. Operators and regulators alike must navigate these complexities to sustain growth and competitiveness in a region where regulatory landscapes are frequently shifting. The decisions made in the coming months will be critical in determining whether Colombia can reclaim its status as a regional leader or if it will continue to face setbacks under its current fiscal constraints.
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