Key Moments:
- Codere Online has suspended all new investments in Colombia after the country’s government made the 19 percent VAT on online gaming deposits permanent.
- Financial results revealed that Codere Online’s net gaming revenue from “other markets,” including Colombia, Buenos Aires, and Panama, dropped by nearly one third, with Colombia responsible for a €1.4m decrease.
- A leadership transition will see Marcus Arildsson replacing Óscar Iglesias as CFO, as the company expands its operations to Italy.
Operational Shift Driven by Tax Changes
Codere Online has revealed its decision to pause new investments in Colombia, a move prompted by the Colombian government’s confirmation that the 19 percent value-added tax on online gaming deposits will now remain in place indefinitely. The company had signaled concerns about the policy in earlier quarters, but the recent announcement was definitive in its intent. Executive vice president Moshe Edree stated that Colombia is excluded from Codere Online’s growth strategy for the next three to five years, pointing to the unsustainable tax environment as a key factor, despite steady customer deposits.
Changing Landscape in a Key Latin American Market
Colombia established itself as Latin America’s first regulated online gambling market in 2016, developing a reputation for regulatory clarity and sustained demand. However, this status is being challenged with the introduction and indefinite extension of the VAT on online deposits. Initially intended as a temporary measure to fund relief efforts in Catatumbo, the tax’s permanence has created immediate consequences for operators: while deposits have not declined, profitability has diminished.
Industry Response and Financial Data
The president of Fecoljuegos, Evert Montero Cárdenas, labeled the VAT “an unsustainable burden” for licensed operators, explaining that bonuses have been deployed to prevent passing the cost to end users, further impacting operator revenues. Data from Coljuegos shows that payments from gambling operators to the national healthcare system declined by 46.6 percent year on year in July, attributed to shrinking margins in the face of persistent tax pressures and competition from offshore providers.
| Month/Year | Operator Contributions (COP) |
|---|---|
| July 2024 | 43.3bn |
| July 2025 | 23.1bn |
Codere Online’s latest financial statement indicates that the “other markets” segment, which encompasses Colombia, Buenos Aires, and Panama, experienced a decline in net gaming revenue of close to one third, with Colombia itself responsible for a €1.4m reduction, all this occurring despite steady deposit levels.
Strategic Developments and Future Outlook
Codere Online also reported changes in leadership, with CFO Óscar Iglesias stepping aside and Marcus Arildsson taking over the position. Concurrently, the launch of Codere’s .it platform in Italy marks its initial foray into online operations in Europe outside Spain, coinciding with Italy’s market consolidation under a new licensing regime.
The Colombian market, long viewed as a benchmark for regulated gambling in the region, now stands at a pivotal point, with recent fiscal policy changes prompting major operators like Codere Online to reassess their commitments.
- Author
Daniel Williams
