VAT Reform Signals a New Era for Colombia’s Regulated iGaming Sector

Regulatory Background of the Latest Amendments

The previous fiscal regime was set to expire on 31 December, a scenario anticipated by industry analysts after the Senate’s 4th Committee rejected the state budget Financing Bill.

Key provisions of the discarded draft law included:

• making the VAT rate permanent;
• allocating tax revenues to address civil unrest in Catambo;
• raising the gambling and lottery charge on capital gains by 10% to 30%.

After the vote failed, the authorities were compelled to implement a special regulatory measure. Article 2 of the emergency decree stipulates the redistribution of the 19% VAT throughout 2026. This step is intended to cover the budget shortfall of COP 16.3 trillion (around $4.2 billion).

Industry Response to the Tax Reform

The measure sparked divergent reactions and intense discussions. Opposition legislators and entrepreneurs challenged the approach's validity and hinted at potential litigation involving government agencies.

In contrast, licensed industry stakeholders welcomed the reform. The federation Fecoljuegos, representing Colombia’s gambling business owners, stressed that the previous VAT on deposits failed to capture the sphere's actual economic dynamics and operational logic.

In April 2025, the organisation reported that the earlier tax approach had caused a 30% drop in online gross revenue. Commenting on the recent reform, the federation’s representatives underlined that the measures adopted for the very first time reflect the real financial business model.

The sector is shifting away from a distorted framework, in which levies could consume over 70% of operators’ actual earnings, towards a more balanced scheme with a fixed charge on GGR. The association stressed that this marks only the initial phase of reform, noting that even under the revised system, the tax burden remains higher than in some international markets.

In 2026, the organisation’s priorities will centre on:

• ensuring a fair distribution of revenues between the state and the long-term sustainability of the regulated sphere;
• promoting technological development and maintaining a constructive dialogue with government authorities in the national interest;
• continuing to financially support the domestic economy and healthcare system.

Tax Policy and Industry Growth: Strategic Outlook

The association’s members underscored the need to maintain a constructive dialogue with the government and to jointly develop a steady, permanent fiscal system. The federation views the initial revision of the tax model as evidence that the authorities have acknowledged the previous regime's unviability.

Advancing reforms along this path could help position the country as a more competitive and investment-friendly market. The updated framework would be consistent with global business standards.

Stay tuned for the latest legislative changes and major industry events with Gaminator’s team. To launch a licensed and profitable gambling project in Colombia, feel free to contact us. Our specialists are ready to assist you at every stage of business development and launch.