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The gambling and betting industry in Colombia is in a phase of regulatory redefinition, characterized by tax reforms and new regulatory advances aimed at ensuring the sustainability of the industry while strengthening its social role. This was explained by Marco Emilio Hincapié, the current president of Coljuegos, in a review of the latest regulatory updates and pending legislation in Congress as the current period of Congress comes to a close.
In an interview with Colombian news outlet El Nuevo Siglo, Hincapié explained that one of the industry’s main requests to the government was the creation of a more balanced tax framework, particularly for online gaming operators. According to the Coljuegos president, the goal was to “energize the activity, guarantee the sustainability of operators, and at the same time increase transfers to strategic sectors such as health.”
Key Tax Reform for Online Gambling
The industry’s request was addressed in the tax reform introduced in Decree 1474 of 2026. The most important change, as explained by President Hincapié, is the update of the tax base for online gaming operators. In the new scheme, the tax is no longer based on the amount of bets made by players but on the gross income earned by the online gaming operators, also known as gross gaming revenue (GGR), after paying the prizes.
In his view, the tax reform is a strategic move by the government to allow the gaming industry to operate in a more profitable and sustainable manner. “A more dynamic and profitable sector tends to grow, operate within legality, and expand the tax base. And it is in the healthcare system where this growth will translate into more resources, as has been the historical role of gaming in Colombia.”
Legislative Advances and New Products
Hincapié also referred to various legislative advances that Coljuegos has achieved. The most important one was the regulation of raffles, which was formalized in Decree 1486 on December 13, 2024. The main objective was to revitalize this type of game, which has been traditional in the country and is expected to generate COP 70 billion per year in transfers to the health sector.
In this sense, Coljuegos is also advancing in the commercialization of a new game, Keno, which is expected to generate COP 480 billion in revenue in the next five years. Additionally, work is being done to reactivate virtual sports race betting, also known as ACDV, which has been regulated since 2016 but had not been profitable for operators until now.
Hincapié’s main message was that the regulator’s focus is on expanding and modernizing the offer in a regulated environment. The objective, as he mentioned, is very clear: to promote legality, strengthen the sector, and maximize transfers to public health.
Sector Performance, Growth, and Ongoing Challenges
In terms of the economic performance of the sector, Hincapié pointed out that the sector’s growth in Colombia has been impressive, as gambling has become one of the most important sectors in the entertainment business in the country. The sector’s performance in 2025 was significant, as the sector contributed over COP 1.06 trillion to the health system in the country.
Regarding the issue of new taxes and the economic and social emergency declared by the government, Hincapié explained that these measures were applied only to the 14 authorized online operators. These operators transferred approximately COP 1.35 trillion in VAT to the national treasury in order to face the humanitarian crisis in the Catatumbo region, while continuing with their usual contributions to the healthcare regime.
Contrary to what was said about controversies over taxes slowing down the market, Hincapié explained that exactly the opposite happened. Betting volumes increased steadily throughout 2025. In December, there was an increase of 25% compared to the same month in 2024. “Never before has so much been wagered in the country”, said Hincapié. He added that this tendency will accelerate with the celebration of the 2026 FIFA World Cup, which will bring more funding for healthcare.
Lastly, Hincapié referred to the leadership role played by Colombia in gambling regulation in Latin America, which has a solid legal framework and international cooperation agreements, such as the recent partnership with Spain’s National Police in fighting against illegal gambling. However, this remains a main issue in the country, with more actions being taken against illegal gambling operations both in the streets and in cyberspace.
Source: SBC Noticias
