Key Moments:
- The Ley de Financiamiento aims to generate COP 26 trillion (over USD 6.4 billion).
- The government set a permanent 19% VAT on online betting deposits, replacing the temporary measure.
- Industry leaders express concern over the tax base, which focuses on deposits instead of outcomes or turnover.
Major Tax Reform Unveiled
The Colombian government launched the Ley de Financiamiento to raise COP 26 trillion (over USD 6.4 billion). The reform updates the national tax system. For the gaming sector, the most important change is a permanent 19% value-added tax (VAT) on all internet betting transactions.
Permanent VAT on Online Gambling
The new policy makes the 19% VAT, first applied during the Catatumbo crisis in early 2025, a permanent part of Colombia’s fiscal plan. The government expects to collect COP 1.6 trillion (over USD 398 million) from online casino activity. This revenue will help fund the 2026 General Budget of the Nation (PGN).
Tax Application Across Gambling Activities
In addition, the reform sets clear tax rules for different gambling formats. The following table outlines the proposed monthly tax obligations:
| Gambling Activity | Tax Amount (UVT per Month) |
|---|---|
| Slot Machines at Casinos | 20 |
| Casino Table Games | 290 |
| Slot Machines in Non-Gambling Businesses | 10 |
| Bingo | 3 per vacant seat |
| Other Localized Games | 10 |
For online betting, the taxable base now covers all player deposits—whether made with cash, bank transfers, or cryptocurrencies—as soon as the money enters the user’s account. Gambling operators must pay the VAT, whether they operate inside or outside Colombia. Importantly, these VAT payments remain separate from betting stakes, and operators may offset them against other tax obligations under certain conditions.
Industry Apprehensions
The gaming sector has taken a cautious stance toward these changes. Fecoljuegos, the Colombian Federation of Gaming Entrepreneurs, voiced strong concerns regarding the government’s choice to apply the 19% VAT on deposits rather than on gaming results or operators’ earnings, describing the tax base as “fictitious.” The organization warned that this approach could distort the industry’s economic structure, increase the burden on operators, and discourage player activity.
Legislative and Political Outlook
Although the reform has been introduced, its fate now rests with Congress. The proposal is expected to face substantial debate given the prevailing political atmosphere. A similar bill that was put forward in 2024, aiming to bring in COP 12 trillion through gambling taxes, failed to advance to the legislative stage. The acceptance of the new Ley de Financiamiento remains uncertain, with both lawmakers and industry participants scrutinizing the proposed measures closely.
As deliberations unfold, attention will focus on whether it is possible to balance the state’s fiscal ambitions with the long-term health of the gambling industry. The outcome will be determined as Congress weighs the specifics of this far-reaching reform.
- Author
Daniel Williams
