Online Betting in Colombia: How 19% VAT Shrunk the Market by a Third
VAT Introduction Crashed Online Casino Revenues
In February 2025, Colombia implemented a new tax — 19% VAT on deposits for online betting.
According to Fecoljuegos (the Federation of Gambling Entrepreneurs), this decision resulted in a 30% drop in gross gaming revenue (GGR) across the sector.
Within just weeks of the tax taking effect, some platforms reported a 50% decline in deposits.
What Has Changed for Players
Previously, the average player spent between 150,000 and 250,000 pesos per month (around $35–59) on betting. Now, when depositing $23.5, they only receive $19.75 to play with. This has influenced user behavior:
- Lower deposit amounts
- Searching for platforms with better bonuses
- More cautious betting strategies
💡 The average online player in Colombia is a 25–45 year old man with a middle income and stable internet access.
Operators in Survival Mode
To retain customers, many companies are temporarily covering the tax themselves and offering bonuses. However, Fecoljuegos president Évert Montero warns:
“This is a short-term solution. If current policies remain unchanged, operators may lose financial stability and the formal market could shrink to a critical minimum.”
Legal Market Under Threat
With the rise in betting costs, there’s a growing shift of customers to illegal platforms, where no taxes are applied and winnings are higher. According to Fecoljuegos, there are currently 15 licensed operators in the country, including Wplay, Bwin, BetPlay, Stake, and Betano, but all are facing the same challenges.
| Problem | Consequence |
|---|---|
| Introduction of 19% VAT | 30% revenue loss |
| Rising betting costs | Players switching to illegal sites |
| Lower deposits | Reduced gaming activity |
| Operator promotions and bonuses | Temporary measure, increasing losses |
Industry Proposals
Montero and Fecoljuegos are calling for a tax review and have proposed the creation of a technical sustainability indicator to assess the real impact of fiscal measures on the market.
They also remind that in 2024, the industry contributed over 990 billion pesos to the healthcare system without subsidies or incentives.