The Colombian Federation of Business Operators of Games of Chance, known as Fecoljuegos, has raised alarms about a persistent 19% tax on deposits made through online gaming platforms, which is part of the government’s economic emergency decree. Fecoljuegos criticizes the tax as being “untechnical,” emphasizing that it inaccurately reflects the sector’s realities and could potentially lead to market distortions.
Fecoljuegos argues that taxing deposits instead of actual bets or net revenue creates an economic imbalance that does not account for the true dynamics of the industry. The concern is that this approach may drive players toward informal markets, as the formal sector becomes less attractive.
Evert Montero, president of Fecoljuegos, elaborates on the issue by pointing out that players must pay this tax even without betting with their entire deposit, or if they decide to withdraw their funds pre-wager. “It makes no sense to impose a tax before any betting activity occurs,” he explained. The tax fails to consider how much of the deposit might be used for betting, how often it might be replayed, or if it will simply be withdrawn.
The current structure artificially inflates financial ratios, Montero argues, because the “re-play” remains a circular system of player credits, not true operator revenue. This misrepresentation of value could have long-term repercussions for the sector’s stability and growth.
Further complicating matters, the tax introduces the risk of players turning to illegal markets. “The moment a player is charged 19% before any game, they are incentivized to move to illegal avenues where no such charge exists,” said Montero. This shift could undermine the formal online gaming industry, giving illegal operators an advantage.
The potential migration of players to unregulated arenas is not the only concern. Montero highlighted that the prevailing uncertainty is shaking business confidence. Some companies, including multinational corporations, are reconsidering their operations in Colombia. An example of a business already relocating to Argentina due to these conditions underscores the gravity of the situation.
In response, Fecoljuegos is advocating for a tax system grounded in sustainability and real income. They have presented alternative proposals to the Colombian Ministry of Finance, suggesting a model based on net earnings rather than on player deposits before expenses. Such a framework would stabilize revenue collection without jeopardizing the formal sector.
Montero underscores that the regulated gaming industry is a significant contributor to public funding in Colombia, especially to public health, with 15% of its income allocated to this end as per the national constitution. “A taxation model that aligns with the actual economic structure of the business ensures stable and reliable revenue for the government,” he stated.
The debate over gaming taxes is part of a broader fiscal discussion in Colombia. Recently, the Economic Committee in the Senate rejected a fiscal reform proposal that aimed to increase taxes on online sports betting operators, including a rise in the VAT to 19%. The proposal, expected to generate around USD 4.255 billion for the 2026 budget, was dismissed with nine votes against and four in favor.
Following this decision, Finance Minister Germán Ávila expressed intent to explore “all necessary measures” to achieve fiscal and social goals. He criticized the vote’s outcome, claiming that “a small group of senators has caused a fiscal imbalance.”
As these policy debates progress, Colombia’s regulated gaming industry finds itself navigating complex economic pressures, regulatory uncertainty, and the looming challenge of competing with the illegal market. The industry’s future will likely hinge on finding a balanced solution that satisfies both governmental fiscal needs and the operational viability of legitimate gaming operators.
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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